When it comes to securing French property, 2016 could be the year to pick up a bargain or two.
Prices have been steadily declining in recent months and economists at Credit Agricole are expecting a slightly less ‘dynamic’ housing market in 2016, due mainly to a mooted rise in mortgage rates.
However, property experts more widely are predicting a favourable year. A market correction in 2016 that will result in stabilising prices and in the meantime the price drop means value for money in the market right now.
According to a CSA poll for the Land Bank, 67% of property experts say they are optimistic about the market compared with 35%. Credit Agricole expect transaction volumes to remain high, although slightly down, about 5% on resale homes.
Of course economists are cautious. They cite a number of factors that could impact on the wider French economic recovery which would affect the property market. Growth is predicted to remain fairly low at 1.2% and unemployment whilst high, is stable. Then there is any additional borrowing by the French State, which will automatically increase mortgage rates.