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FRENCH PROPERTY REDUCED IN PRICE AS PROPERTY PRICES IN FRANCE FALL |
| French property reduced in price as property prices in France fall, Dordogne and Charente property prices reduced to sell |
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French property has been just as badly hit as the UK as prices have fallen across the board. It means that anyone thinking of buying property in France is likely to pick up a bargain as prices drop to their lowest level in years.
Well, the Politicians & Economists can argue amongst themselves as to whether or not the civilized world is theoretically in recession, or not, but the rest of us are all to well aware that times are hard, and money is in short supply........Interesting to watch TV adverts for Banks promoting their benefits & Building Societies advertising their latest loans, when reality is that there is not actually much on offer at all! DORDOGNE AND CHARENTE PROPERTY PRICES REDUCED TO SELL The market here in the Dordogne and Charente in south-west of France has been dire over the winter, but don't read into this statement that nothing is selling, for there has been some activity, from native French, some British & a smattering of other Europeans. With some vendors being realistic with their asking prices, properties have been reduced in price & many owners are [prepared to accept an offer. Some properties represent extremely good value, & are being bought by those wishing to secure a property prior to the market improving. The French estate agency profession, FNAIM ,released its' house price index for 2008, & this showed an average fall of about 4%.However,regions vary, and certainly the adage of "what goes up must come down" applies. The biggest fall was in Mediterranean cities, especially Marseille, where prices had risen by 250% over the past 10 years, and fell by 20% last year. Bordeaux town centre prices dropped 10% last year, after prices doubled between 2000 & 2007.But such things are mainly isolated incidences, & are not indicative of elsewhere. In regional as opposed to localised figures, the south-east last year dropped by an average of 5.9% after 10 years of upward-only prices, the south-west changed less than a percent, hence the average across France of about 4%. FRENCH PROPERTY REDUCED IN PRICE BNP Paribas bank bears out such geographical differences, with the greatest falls in the south-east and the least change in the south-west. Despite this, French property in the Dordogne and Charente has reduced in price. Their statistics also take into account lettings, and whilst real estate prices have fallen, there has been a continuous increase in rents.......and they see now as an ideal time to invest in French property, with good current returns and attractive capital gains over the medium to long term. Indeed, as in the UK, some institutional investors are "bulk-buying" houses from developers to place on the rental market whilst awaiting values to increase. Property prices will recover, and then increase, due to the basics of supply & demand. The debate is not "if", but "when". Banks are restructuring, & huge mortgages are a thing of the past, and whilst this may not directly affect the majority of purchases of French property by the British, it will affect first-time buyers throughout Europe, especially those countries with high property values, such as England. So, many young people will be considering "fractional ownership", where they purchase a percentage of the property along with a specialist company or developer. Brad Lincoln, CEO of fractional consultancy "The Best Group", believes that in 5 years time, the only people not buying fractional ownership will be retirees & high-end buyers of luxury property. Fractional ownership, with its lower entry costs will become standard for most average people getting onto and progressing up the UK property ladder...... PROPERTY PRICES IN FRANCE FALL The property market here in the south-west of France is part-French buyers and part others, and property prices have continued to fall, this latter varying within each locale, and each year brings in, or takes out different Nationalities according to individual countries economies etc. However, it is beyond question that British are the majority of the non-native purchasers, followed by other northern Europeans with relatively high domestic property prices & looking for a warmer climate. French buyers have had to contend with the Economic downturn, whilst the British have not only this, but reduced exchange rates. However, the Pounds fall against the Euro has stopped, & indeed it has risen from its' lowest level. Colin Lawrence of foreign exchange brokers TorFX believes that the revival in global Stocks is supporting the Pound in the near-term,& that trend may continue amid speculation that the downward move against the majors was over-exaggerated & all of the bad news for Sterling has already been priced into the market. Over the past year, the Pound has lost over 20% in value against the Euro. The aggressive cuts in UK interest rates by the Bank of England is in contrast to the stance of the European Central Bank on monetary policy. Thus the Pound is rallying against the Euro on speculation that the economic recovery in the UK will be quicker than in the Euro-zone, especially as financial turmoil in periphery European states like the Ukraine & Poland may slow growth in the countries that use the single currency. Indeed, the British Governments efforts to revive the Economy may actually work in bringing the UK out of the worst recession in decades, before the rest of Europe. One never knows when a market is at its bottom, until it starts to climb, & then the moment has passed! But with French property prices at their lowest level for many years and with returns on monies & other investments in the UK negligible, certainly we are seeing some shrewd people putting their money into French property.......sunshine being a bonus!! French property reduced in price as property prices in France fall, Dordogne and Charente property prices reduced to sell |
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