British buyers flock to france

Photo: Moyann_Brenn

British buyers are flocking to France to take advantage of the affordable euro.
With the pound at an eight-year high against the currency, investors are £50,000 better off than a year ago. The result is a market that has not been so attractive since 2007.

"The plights of the Eurozone are paying into the hands of British property investors," says Nicholas Leach, Partner at Athena Advisors. "These are the best rates we've seen for almost eight years."

Indeed, on a €500,000 property, British buyers have become more than £51,000 better off, notes Leach.

"A saving of over 10% in just 12 months."

The pound rallied to high of 1.439 at the end of last week against the Euro. The pound also staged a strong recovery on the dollar hitting above $1.563 after dropping sharply at the start of this month.

"The perfect market conditions of a strong pound and low interest rates in France are becoming a heady mix for British investors," continues Leach. "Prices are soft and buyers can negotiate hard, except on new-builds in prime areas as these remain in huge demand."

Holidaymakers have already been taking advantage of the strong sterling against the euro, with the Royal Mail highlighting tourists' potential to gain the equivalent of around £56 extra on a £500 currency purchase.

Lloyd Hughes, Head of Communications at Athena Advisors, comments: "Tourism industries across Europe will welcome this news just as we hit the prime six weeks of summer holidays and British tourists flock abroad to their favourite destinations. Some bureaux de Change are offering €1.40 to the pound, which is certainly a good start to the summer."

Bargain hunters are not the biggest spenders, though: buyers in search of prime property at good value are also out in force.

At the current exchange rates, a UK investor could save up to 40 per cent on a typical Parisian property, VINGT Paris tells OPP Today: a €700,000 home would cost around £510,000.

Two-thirds of the capital city's real estate is already owned by overseas investors, notes the firm, with Paris second to London as Europe's second most attractive destination for Foreign Direct Investment (FDI).

VINGT Paris Chief Executive Officer and founder, Susie Hollands, comments: "Attracted by the property market’s incredible resilience  and sustained demand for Paris homes, overseas investors have tended to hedge against inflation by investing their liquid resources in tangible, prime Paris assets. As London becomes increasingly unaffordable, Paris will be the winner."