The Move Channel is one of the market leading websites for international property. They recently ran an interesting article regarding the French property market which includes some input from Home Hunts and a number of our partner agents in France, as well as some interesting statistics from organisations such as “Notaires de France”
Here is the how the article starts: (read the full article here)
“French property sales are forecast to continue growing in 2017, as agents brush off dramatic headlines about Brexit’s impact upon British demand.
The UK’s decision to leave the European Union, voted for in June last year, has been the talking point of the real estate industry for many months and will likely continue to be for many more to come. This year, France follows suit with its own major vote: the country’s general election. Taking place after elections in Germany and Holland, 2017 could be one of equally notable political shifts.
Nonetheless, France’s lifestyle appeal remains strong, and estate agents remain confident about the attractiveness of real estate”
The article goes on to include some quotes from HH Director Tim Swannie:
“Tim Swannie, director of Home-Hunts, which specialises in higher-end property, says it has seen enquiries drop from UK clients, either due to the pound or a general cautious attitude. However, the company has also seen a rise in buyers driven by Brexit.
“They want to make sure they own a property in the EU before the UK officially leaves,” comments Swannie.
“There have been two specific areas where we have seen a rise in enquiries from the UK: Paris and also the French Alps,” he adds. “The majority of these enquiries come from clients who work in Finance; some are looking to relocate closer to Paris or Geneva and others are buying for investment purposes, with a view to relocation in future.”
Swannie reports that the many clients are now shunning cash purchases in favour of taking out mortgages.
“Many French banks offer what is called a ‘back to back’ loan, whereby you can deposit your money in Sterling with them and then you borrow the same amount in Euros,” he explains. “This is a perfect solution to avoid taking a hit on exchange rates. Then, when rates improve in future, buyers can choose to pay off the mortgage.”
“The majority of clients at the moment are coming from mainland Europe, specifically Scandinavia, Benelux and also Germany” says Swannie, who also reports “a lot of interest” from Swiss, American and Middle Eastern clients.”
Read the full article here or view it here below: