Encouraged by falling prices and attractive mortgage rates, investors are returning to French bricks and mortar.
The real estate market in France most certainly active again. Even with mortgage rates rising in May, the French property market has found it’s stride, pacing throughout the normally quiet summer. There is a now a distinct pause for breath before the ski season starts.
In late June, notaries recorded 716,000 sales in one year for resale properties, compared to 694,000 for the three previous months combined. Prices remain keen too.
So where have these conditions come from? After shunning property for a while, watching prices fall further and the mortgage rates too for that matter, buyers have been making their calculations. And now they have realised that with the same budget they can now afford properties which they could not dream about three or four years ago.
Buyers are better informed, as you expect having waiting for so long and they are determined to take advantage of the current opportunities.
Yet whilst turmoil in some financial markets across the world would unnerve some investors, largely it has only further proven the reliability of bricks and mortar. And it’s not just a trend with foreign investors buying in France, the same pattern appears within the domestic market. According to the latest statistics from the INSEE, nearly 58% of French are owners while they were only 51.9% in 1984.