Property values in certain areas within France that are especially popular with British buyers are falling as the euro reaches new lows against the pound.
Four years ago, many Brits had to let go of hopes of living a new life in France as the value of the pound dropped massively.
However, as the euro plummets to new lows and the property market in France weakens, many Brits are being provided with the perfect opportunity to turn previous dreams into a reality.
FNAIM, the association of estate agents, has estimated that property prices will, on average, experience a drop of 5%, while a fall of 5%-10% is predicted by the French notary association.
Credit Agricole, one of the largest banks in France, expects to see a fall of 5%-6%. Therefore, it seems a downturn is almost certain.
Paris has been known to offer some of the most overpriced property in the whole of France, with the last ten years seeing property prices increase by 184%. However, the cost of property in Paris started to drop towards the end of 2011.
Other than Paris, areas such as Brittany have recorded a fall in property prices by 4.6%, while Lower Normandy has seen prices decline by 6% and a 9.7% fall occurred in Burgundy.
The Bank of France has revealed that between January and February this year the number of mortgages provided dropped by 41%, which is the lowest figure recorded in almost three years
It is expected that overseas property buyers will take advantage of bargain properties in France.
Last month, Edward Landau, owner of French estate agents Le Bonheur, said: “Finally, there are investment property buyers, which are a growing market due to insecurity in the euro and financial markets”.
Transfer Money to France
If you are thinking about investing in French property, it is definitely a good idea to consider the logistics of transferring money abroad.
So, if you are looking to send money from UK to France (which is inevitable if you are looking to make a property investment) be sure to compare the market before you finalise your choice of French mortgage.
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