If you are thinking of purchasing a property in France then right now is the best time to do it. There are deals galore at the moment with vendors in certain parts of France accepting offers of 10% and sometimes 15% below asking price meaning there are literally tens of thousands of pounds to be saved by buying now while your bargaining power is at its strongest.
This shift in the market can be seen all over France from Poitou Charentes right through to some areas of the Cote d'Azur and is especially evident for character village and countryside homes which are the least in demand from the local French population and therefore seeing the biggest price reductions. British and Irish buyers who are traditionally looking for this type of property are wasting no time in taking advantage of this lull in the market before prices kick on once again as they have done in the previous five years. Other highly sought after areas such as the popular ski resorts, commercial towns or tourist hotspots are seeing far smaller price reductions from vendors as demand is still high and will always attract buyers.
The reason for this quiet market in France right now is not easy to boil down to just one variable but two in particular are likely to have had an effect: Euro interest rates and large price increase over the last five years. The Euro base rate of interest is now at 3% after last month's increase bringing most mortgage interest rates to a little over 4% p.a. which has taken the pace off the demand. French buyers are now more cautious and wary of another increase in interest rates wandering if there is more of a correction in the market to come after the boom in property prices in previous years.
New Build/off plan property is performing far better and developers are having no trouble at all selling their units and indeed are struggling to keep up with demand for French residents and foreigners alike. Unlike other countries such as Spain new developments are not as frequent in France yet demand by French citizens for new homes which has historically been far greater than for old homes sees no sign of changing. This limited supply and excess demand therefore keeps the new build market strong in France even in times when market conditions are not at their strongest.
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Nick Dowlatshahi is the Managing Director of Leapfrog Properties who are a property agency specilaising in helping the British & Irish buy property in France. Visit
http://www.leapfrog-properties.com to see our vast selection of French property
