Buyers take advantage of favourable french market

Cap Ferrat, on the Riviera - the most popular destination with Home Hunts buyers Photo: Chris230

Property buyers are taking advantage of the favourable conditions in France's market, according to luxury property specialist  Home Hunt.

The firm's second annual Inside France report reveals a rise in enquiries and transactions, as buyers who were waiting for an optimal buying opportunity have decided that the time to buy is now.

FNAIM reported an average 1.5 per cent drop in house prices in France in 2014. The first quarter of 2015, though, has seen many areas remain stable and some areas have even seen a slight increase, says Home Hunts.

"Home Hunts' buyers are taking advantage of this unique time in the French housing market to find their dream home, in their dream location at a dream price," adds the agency.

"Lower prices already make the prospect of buying French property interesting, but combined with low interest rates, advantageous exchange rates and now also a reduction of Capital Gains Tax for foreign sellers of almost 50 per cent effectively; the French real estate market is offering attractive deals that were simply not possible before."

As a result, Home Hunts' enquiries and sales of prime property jumped 35 per cent year-on-year in 2014. Demand was led by the Brits, followed by American, Swiss, Russian and Middle Eastern buyers. Other investors, from Italy, Belgium, the Netherlands, Scandinavia and Brazil were also active.

Paris, the Alps, Aquitaine, Languedoc, Provence and the Riviera were the most sought-after areas. In Provence, stone farmhouses with land were the most popular, while in Paris, buyers focused on the 6th, 7th, 8th, 16th (north), 17th (Parc Monceau), and 18th (Montmartre) arrondissements.

Cap Ferrat on the French Riviera continues to be Home Hunts' most expensive and desired address, notes the report, while the most popular price bracket overall was €1-5 million. This was particularly true in the French Alps, which received 90 per cent of the overall interest from buyers making enquiries in this region.

"The French General Election in 2017 is likely to result in a Change of government," cautions the report, noting that "savvy investors are taking advantage of the current favourable buying conditions to reap rewards later."