The French Property Scene

As I get more and more involved with French property as a result of my activities as both a property finder and an “agent commercial”, I have been trying to assess the state of the property market in France, particularly of course in the Perigord Vert. So what is going on according to those supposedly in the know?

Well the latest figures published by the ‘Notaires de France’ show that prices have fallen nationally by 3% in 2012 although this figure hides some notable falls in certain areas and rises in others (prices around Toulouse for example have actually risen by 4.5%). Over the past year, FNAIM, the national association of French estate agents, reports that house prices have fallen by an average of 1.3%. There has also been a substantial fall in property sales with both Notaires and estate agents reporting a slump of around 20% in the volume of sales despite the record low mortgage rates. As with the UK market, much of this is to do with the banks that have introduced tougher lending criteria with the result that mortgage lending is down by around 30% in the past year.

In this region, there has certainly not been a noticeable drop in prices actually asked this year but I have noticed that sellers are being more realistic about accepting offers below their asking price and this seems to have sustained the market here and kept things moving. This means that 2012 has been a buyers’ market and I think that this will continue into 2013. Properties needing total renovation are also in the frame again as are part renovated properties which are habitable though in need of some finishing, as long as the price is realistic and reflects the work to be done.

A great example of this is a property that I have recently taken on to market through Allez-Francais. It is a former railway station that was converted (rather badly) some years ago into three apartments but it has been empty for some years now and is looking rather sorry for itself. It is a large property that would make either a fine family home or perhaps a bed and breakfast property. It was on the market for €260,000 and was attracting zero interest. I advised the owners that if they really wanted to sell, they needed to lower the price significantly to reflect the renovation work that would be required. It is now on the market for just €159,000 (about £130,000) and is attracting a lot of interest. Have a look at it here.

In addition, demand for good quality properties in good locations is also strong, thanks to a lack of domestic buyers which has opened up opportunities for British and international buyers to snap up desirable properties. Click here to see an example of another property that I have just taken into my portfolio that very much fits the "quality property" tag. I really enjoyed myself photographing this one!

So how to sum up the property market in this region in 2012? Well, despite the continued uncertainty in the Euro-zone, France stays consistent in its appeal to foreign buyers and I can’t see that the wish to own a small part of this beautiful country will be changing any time soon. Certainly the lower risk factor of buying property here keeps buyers and investors interested and the very low mortgage rates, tight controls and the uncertain Euro mean that French houses are still very good value. And while property in this region hasn’t been reduced to bargain basement prices, it generally remains well under UK averages with plenty of properties available within any budget. So despite the widely varied reports on the market from different sectors of the industry, 2012 has been a relatively stable year for property in this region. Sellers have become more realistic about the price they are likely to get and so long as buyers are reasonably flexible in the kind of property they are looking for and the compromises they are prepared to make, there are some outstanding bargains to be had.

I don’t think anyone knows quite what is going to happen with the Euro or the financial climate generally but I have every confidence that, for anyone who wants a beautiful French house in a stunning location combined with a fantastic quality of life and a lovely climate, this is one of the better places in the world to spend your money on property.

Of course that is just a personal viewpoint from someone who has no regrets at all about having made the move to live and work in France!