Wednesday 30 March 2011

French holiday homes: On the Up?

Today the Guardian reports on the French Property market .....

Britons who own a French holiday home have had to weather a much gentler downturn than in Spain – and house prices may now be on the up

Britons typically buy near airports served by budget airlines, in four main regions – the south west, from Normandy down to the Spanish border; the Mediterranean coast, along the Cote d'Azur and provence and into Languedoc; the Alps; and a smaller number of generally wealthier purchasers look to Paris.

Britons who choose France for a holiday home are typically better off than those who buy in Spain and have had to weather a much gentler downturn. Price falls of 10% to 15% have been common over the past five years.

Few buyers have had to cut their losses, however. Estate agents say there has been no discernible rise in "distressed sales". Instead, some believe canny Britons, who bought when sterling was strong, are waiting to see if the exchange rate shifts further in favour of the euro – in which case a quick sale could see them net a good profit.

After years of gentle decline and sometimes sharp falls, the French housing market appears to be picking up.

The Fédération National de l'immobilier, the French estate agents' body, says average prices of all homes rose 6% in 2010 and property purchases exceeded 700,000 – a 15% rise on 2009. "Prices, after having fallen quite significantly – approximately 10% if we look at the end of 2009 – have regained a certain strength," says FNAIM president René Pallincourt.

The average price of a home in Burgundy is now €148,400 (£129,000), while in Languedoc the figure is €208,800 (£182,000) rising to €384,200 (£334,000) in Provence.

1st for French Property report that enquiries are up in early 2011 but Brits are looking to negotiate on prices to protect themselves against further falls

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