20th December 2019
- Planning Your Viewing Trip After Lockdown
- During The Health Crisis Stay Safe Stay Home
- What is the Most Romantic French City to Spend Valentines?
- New Year, New You, New Toit?
- What Does the Result Means for Brits & the GBP
- Finding Your Perfect Property in France
- 5 Reasons House Hunting in Winter is a ‘Bonne’ Idea
- Paris Sera Toujours Paris
- Advice for Buying Property in France - Revisiting Our Top Tips
Market Outlook and Predictions for Real Estate in France in 2020France is one of the best destinations for property buyers looking to settle in Europe as quality of life is considered to be high there. Amazing and varied climate, a stable property market, relatively low crime, long life expectancy, low population density, some of the best food and wines in the world, massive heritage, diverse culture, world class healthcare, great education and transport systems make it an eternal favourite.
Perhaps you have been thinking about buying a property in France for some time but not yet found the confidence or timing to be right for you. So take a look at our trends & market report for next year and our take on why we believe 2020 is a great time to find your ideal property and embrace your new lifestyle.
1 Million Property Sales in 2019?
With 985,000 property transactions at the end of March 2019, the amount of yearly transactions is at a historically high level, with 1 million sales a possible new high before the end of the year.
Each year France receives more than 100,000 foreign nationals who want to settle there permanently. This represents approx. 10% of all property sales in France and a report from BNP Parisbas predicts an increase of 8% in property sales to foreign buyers in 2020.
France Is no1 Tourist Destination in 2019
For those looking to run a gite hospitality activity or Air B&B style rental property you’d be pleased to learn that France was voted no1 tourist destination in the world 89.4 million visitors last year. And the Insee reports that last summer (2019) bookings for tourist accommodation increased by an impressive 2.2%.
And there’s the golden Olympic Games effect with property investors and businesses looking to cash in on the Games coming to Paris for the JO in 2024. Real estate prices in Paris have increased by 23% in the last 5 years, growing from an average €8,368/sqm in 2015 to €10,288€/sqm in winter 2019.
Property Prices & Market Trends
Last year property prices have continued to increase at a steady pace in greater Paris (+3.9% from march 2018 to march 2019), this is predicted to grow by 7% for the Paris luxury real estate market according to Frank Knight in Mansion Global.
The growth rate remains unchanged for the rest of France (+2.6% from march 2018 to march 2019). See the image for average price of resale prices in France, up to march 2019 according to Notaires de France (city centre and suburbs).
This trend is set continue due to a combination of record low mortgage rates, returning expats, investors seeking a strategic foothold in Europe and renewed confidence from French buyers who consider real estate a safe investment.
Oh Non, Pas le 'B' word!
With the UK leaving the EU next year there’s no doubt that some families, businesses, expats and returning families will be looking at France as the best place to work and live while watching what unfolds elsewhere. We know this because we receive enquiries everyday, from Washington to Geneva, and Hong Kong to Copenhagen. Take a look at my article on what the election results means for Brits looking to invest overseas and for the UK sterling currency.
There’s a mix of other factors that are making France (and Europe) so popular with expats looking to relocate or invest in real estate. People are genuinely starting to take stock on the meteorological events they are witnessing in all corners of the planet and starting to think and plan.
Many holiday makers are now considering their carbon imprint, particularly when flying to other countries. This makes France a very attractive option thanks to it’s strategic position in Europe, it’s excellent road and rail network and the size of the country offering many options, whether looking for a place to rent for the summer to generate income or as a second home.
Outlook for French Mortgages
The interest rate on French mortgages stayed at historically low levels in 2019. The Banque de France has reported an annual growth rate at + 6.67% while the average interest rates on new fixed rate residential mortgages reached a new low in September 2019 at just 1.27%.
The forecast for French mortgage rates shows that the underlying low interest rates will continue for the foreseeable future. (Source Banque-de-France / Sept 2019). We partner with a reputable and very well established overseas property and finance specialist who can assist with french mortgages for residential use.
If you are serious about investing in real estate in France in the new year then kindly register your interest here or contact us if you would prefer to discuss your plans over a phone call, or to send us an email.
Wishing you a Very Happy and Successful New Year.