Today’s Real Estate Report: France

French Real EstateToday we’ll take a look at France’s real estate market.

First off, a report on sizzling sales in the French Alps from the NuWire Investor:

Investors in the ski property market remain diligent but are returning steadily to the market especially in France where finance remains affordable and accessible, according to a new report. Also the fact that the 2012/2013 winter season looks like it will be achieve record snow falls and visitor numbers and hotel bookings are up on the previous year means there is likely to be a lot of interest. The latest Alpine Homes Report in association with international real estate firm Savills also says that there is evidence of price increases in the new build market as supply falls, but there are deals to be had on older property. ‘New Year brings fresh snow and fresh buyers. At the beginning of 2012 and last year’s ski season, we spoke of rising stock markets and the January effect. That is to say, the FTSE 100 index had increased 5.5% in January and historically, stock markets are more likely to end on a high when there are positive gains in January,’ said Jeremy Rollason, managing director of Alpine Homes.

Homes Go Fast offers tips for buying luxury property in the French Riviera:

Want to join the crowds and pick up a prestigious new home? Here is FinestGlobal’s guide to buying luxury property in Saint-Jean-Cap-Ferrat: Tranquil beaches, green landscapes and warm winters… Saint-Jean-Cap-Ferrat is one of the most sought-after destinations for wealthy holidaymakers and second home buyers. With temperatures that drop below 10°C for only a few weeks every year, its sheltered location on a peninsula from the southern coast of France makes Saint-Jean-Cap-Ferrat as close to perfection as it gets.

The Financial Reporter talks about the current buyer’s market in France:

The federation’s data shows that the regions of Brittany and Normandy have been the most affected, and that since March 2012, the number of sales calculated over the last 12 months has fallen by an average of 2 per cent each month compared with the previous 12 months. Regions such as Rhône-Alpes are, however, bucking the downward trend in sales, with Alpine property proving popular with buyers, resulting in increased demand and sales. In Méribel, for example, the price per square metre has risen by 15.1 per cent over the past year

Property Abroad News speculates that prices may soon start rising on French real estate, led by Paris:

Paris is expected to lead the nation as an upturn in prices seems all but imminent. Cutting-edge projects in the capital of France are attracting high levels of demand from overseas buyers. The development of neighbourhoods and new residences is expected to grace the French real estate market, thereby inviting an influx of investment. Sarah Francis, an agent working for London-based realtors Sifex, believes that prices in the better neighbourhoods are dropping as a large number of French families are fleeing the country in order to avoid paying high rates of taxes. According to her, most of the interest is now expressed towards design-conscious and affordable alternatives. Three neighbourhoods are expected to be redeveloped this year.

And Homes Goes Fast sees UK buyers propping up the French real estate market:

It seems that Brits’ love affair with property in France won’t be dented by increased property taxes. UK buyers are still heading to France in significant numbers ‘with the residential real estate sector proving a beacon of hope in a recuperating economy’, according to the Daily Telegraph… A significant proportion of people buying property in France do so with the intention of moving into it in the short or medium term. Consequently, increases in the taxes on rental income haven’t had a huge impact on demand and aren’t a deterrent to buying.