France Insight 2012

12 March 2013

France’s mainstream and prime property markets have followed diverging paths since the onset of the global financial crisis in 2008/09. Prime prices have weakened but sales are being agreed where properties are being realistically priced. Buyers, although price sensitive, continue to be convinced by France’s enduring appeal as a luxury second home destination. Kate Everett-Allen assesses current market conditions along with Hollande’s new tax proposals.

Key findings Sept 2012
  • Prime prices started to soften gradually in Autumn 2009 but havesince weakened further as the growingEurozone debt crisis has undermined market confidence
  • France’s domestic mainstream housing market has seen prices rise by 12.6% since Q2 2009, exceeding theEurozone’s average of 0.8%
  • In 2012 the weakening Euro has led to increased demand from British and non- Eurozone buyers in certain key markets*despite the ongoing fragility of theEurozone economies
  • The outlook for French prime property is positive despite the debt crisis and fiscal austerity. Property investorscontinue to favour France over theEurozone’s non-core member states