"standing room only" for french property
Photo: Msquirrell
Demand continues to increase for French property this year, as the strong pound boosts interest from British buyers. News of the Conservative Party victory in the UK's general election caused Sterling to surge against the euro last week, increasing the buying power of investors.
Some French locations have sought to take advantage of favourable exchange rates by discounting properties heavily. The coastal community of Champ-du-Boult in Normandy announced that it would offer plots of land last month for just €1 per square metre, hoping to boost its dwindling population, a quarter of whom are already British.
"We're in a period where money is short, with state grants being cut back," Mayor Patrick Madeleine told the Telegraph. "The only way to bring a bit more wealth into the community is to bring in new residents."
The land was first listed on the market in 2007 for €12 per square metre, but no buyers were interested.
France as a whole has seen a similar dip in property prices in recent years, with the latest annual review from the FNAIM revealing the values dipped by an average of 1.5 per cent in 2014.
In the French Alps, though, prices are now starting to climb, reports Leggett Immobilier.
All three types of Alpine ski property (apartments, chalets & houses) saw price increases in the first quarter of the year, says the agent, which it highlights as proof of improving sentiment in the market and an "important reversal of the trend in falling prices".
Prices jumped by almost 2 per cent in Mont Blanc and the Three Valleys.
Heather Byrne, area coordinator for Leggett Immobilier in the region, comments: "These are early days in terms of price growth and values but our pipeline of offers accepted and our completed sales confirm that demand continues to increase across the Alps. These price changes may seem modest but the cumulative effect over a number of quarters is significant to owners and investors alike."
Earlier this year, MGM Constructeur also reported a strong start to 2015, with the agency racking up half of the sales by Easter that it had originally aimed to complete by the end of December.
The company is optimistic about the rest of 2015, citing the broadening appeal of the ski sector, thanks to a growing range of summer activities offered by resorts outside of the snowy season, such as hiking.
The upbeat mood is shared by FranceBuyingGuide.com. Its owners, the Overseas Guides Company, says that enquiries and downloads of its French buying guide jumped 66 per cent year-on-year in the first quarter of 2015.
Angelos Koutsoudes, Head of OverseasGuidesCompany.com, says: "There is little doubt that the favourable exchange rate has triggered a large number of British people to consider an overseas property purchase, in particular in the Eurozone... We’re expecting bumper second and third quarters."
France has also risen in popularity on TheMoveChannel.com, climbing from seventh in March 2015 to become the world's sixth most sought-after property destination in April.
At last week's A Place in the Sun Live show at the London Olympia, Managing Director Andy Bridge says that there was "standing room only" in the French seminar areas. For those hoping to hike their way to a bargain this summer, their feet certainly appear to be pointed in the right direction.