john84

French Property - Price Increases For 2008

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France is being sold as the next property hotspot next to Turkey, Germany and Greece for 2008. Mainly due to favourable lending my French banks,; new low cost airline agreements and the French themselves investing their money in property instead of the stock market. Whether this will happen only time will tell.
[url="http://www.hiday.net/news.html?newsid=198"]http://www.hiday.net/news.html?newsid=198[/url] Edited by john84

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[quote name='john84' post='966431' date='Feb 11 2008, 10:05 PM']France is being sold as the next property hotspot next to Turkey, Germany and Greece for 2008. Mainly due to favourable lending my French banks,; new low cost airline agreements and the French themselves investing their money in property instead of the stock market. Whether this will happen only time will tell.
[url="http://www.hiday.net/news.html?newsid=198"]http://www.hiday.net/news.html?newsid=198[/url][/quote]
Prices do seem to be going up slightly, but only in the places favoured by the local market (newish, town properties with employment) - probably due to the new laws on tax relief. Prices of Brit favoured old country homes seem to be dropping like a stone as far as I can tell.

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[quote name='john84' post='966431' date='Feb 11 2008, 08:05 PM']France is being sold as the next property hotspot next to Turkey, Germany and Greece for 2008. Mainly due to favourable lending my French banks,; new low cost airline agreements and the French themselves investing their money in property instead of the stock market. Whether this will happen only time will tell.
[url="http://www.hiday.net/news.html?newsid=198"]http://www.hiday.net/news.html?newsid=198[/url][/quote]

We are planning to re-locate to SW France next year and from my own property price tracking (not new builds) - prices are dropping. Talking to EAs they confirm this is the case with property not shifting and many asking prices being reduced by 10% and open to offers of 10% under asking price. Even then they are still too expensive for local French people and with the GBP-Euro exchange rate and UK credit crunch i expect UK buyers not to be investing any time soon, so I think we may see further drops especially if UK investors decide to sell up abroad and more property is up for sale.

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[quote name='letitcomedown' post='966657' date='Feb 11 2008, 11:18 PM'][b]Prices of Brit favoured old country homes seem to be dropping like a stone as far as I can tell.

[/b][/quote]


100% correct as I write. :( :(

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[quote name='Daft Boy' post='967498' date='Feb 12 2008, 03:35 PM']100% correct as I write. :( :([/quote]

Points taken! However when you look at prices of flats in London, Leeds, Liverpool and Manchester, 60 00 - 70 000 euros for an apartment in the French suburbs overlooking the Seine cant be bad. Surely whatever happens it is much better value than what is on offer in the UK at the moment.
[url="http://www.hiday.net/news.html?newsid=198"]http://www.hiday.net/news.html?newsid=198[/url] Edited by john84

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I to would like to relocate to SW France.

Been watching a property for 235k Euro's it has just dropped to 200k.

Think I might wait a bit longer!

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[quote name='wadisgod' post='987649' date='Feb 26 2008, 05:42 PM']I to would like to relocate to SW France.

Been watching a property for 235k Euro's it has just dropped to 200k.

Think I might wait a bit longer![/quote]

SNAP ! One we are interested in has just dropped 30k Euro in asking price. Only problem is Euro is getting so much stronger against the pound - these house drops are being offset. We don't plan to buy until late 2008/early 2009 and re-locate mid 2009 so we will play waiting game for a few more months and hope things will go in the right direction for us. Either way we are leaving the UK for France - that is certain. :lol:

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I think the Euro will weaken

[url="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/28/cneuro128.xml"]http://www.telegraph.co.uk/money/main.jhtm...8/cneuro128.xml[/url] This is on today'sblog

More important some one clever thinks so.

This then will be perfect, falling house prices and strengthening pound.

I am told that most French sellers will accept an offer 10% below asking.

Where abouts in France are you thinking of?

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Just spotted anther one falling in price. Last week 745k Euro's this week 691.9K

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[quote name='wadisgod' post='991582' date='Feb 28 2008, 09:11 PM']I think the Euro will weaken

[url="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/28/cneuro128.xml"]http://www.telegraph.co.uk/money/main.jhtm...8/cneuro128.xml[/url] This is on today'sblog

More important some one clever thinks so.[/quote]
Ambrose is at it again. Fact is, we don't know enough about the eurozone (or UK) policy and conditions compared to what we know about the US. The euro is an untested currency, meaning it could be stronger or weaker than anyone expects. And we have no idea what financial calamities are waiting to happen in Asia.

I guess sterling will decline against the euro for years. God knows what happens with the dollar and the yuan.

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[font="Franklin Gothic Medium"][font="Arial Black"]I guess sterling will decline against the euro for years. God knows what happens with the dollar and the yuan.
[/quote][/font][/font]


Say the pressures within the Eurozone lead to the collapse of the Euro!

Not saying it will happen but it could. Edited by wadisgod

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[color="#000000"][quote name='wadisgod' post='995025' date='Mar 2 2008, 04:21 PM']Just spotted anther one falling in price. Last week 745k Euro's this week 691.9K[/color][/quote]



This one has now dropped to 651,900 Euros!!!!!!!!!

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Going over this week to view four. The Agent tells me that nothing is selling ( must take the time of year into account) and to start my offers around 25% less. This is a massive change in sentiment as far as the French are concerned.
Things must be bad over there and it appears that inflation is killing them.

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Lots of Brits I know in the Aude region of Languedoc are really beginning to worry about the effect of the strong euro on their pensions and savings (together with the recent problems relating to medical cover) - also, in that part of France (inland not on the coast) properties are coming on at an absurdly high rate (both in numbers and asperational pricing) and naturally, nothing is selling. Economically this is still a very poor and backward region and once again it is the greedy Brits who are either trying to get out competely or flog off the spare maison they bought to rent out and can't, who have caused this scenario.

Something will have to give though.

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We looked at buying a place in SW France a little while back, but with the recent fall in the value of Sterling versus the Euro, I don't think we will go down this route now.

From my experience, house prices in rural areas of SW France rose steeply (in Euro terms) from around 2001 to 2004, then flattened out. Talking candidly to a local agent in the spring of last year, it appears that transaction volumes nosedived around 2004/05 with relatively few buyers around. However vendors were still reluctant to drop their prices or in most cases to accept low offers, even on properties which were basically wrecks and uninhabitable.

I think the test will be how many Brits decide to sell up because of what is now a poor exchange rate (though not a problem if they have a locally derived income) and the recent negative changes to health cover. There is always an attrition rate, with expats returning for family or other reasons. However I can see this accelarating which will lead to an increased number of properties for sale, further depressing prices (of the type of houses Brits usually go for). The one positive aspect for returning expats is that the Sterling value of their sale will be higher, possibly cancelling out the reduction in sale price. But are there any willing and able buyers around at the moment?

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[quote name='stumpy' post='1028172' date='Mar 23 2008, 09:40 AM']Going over this week to view four. The Agent tells me that nothing is selling ( must take the time of year into account) and to start my offers around 25% less. This is a massive change in sentiment as far as the French are concerned.
Things must be bad over there and it appears that inflation is killing them.[/quote]

Hi - curious to know how your viewing trip went. Can you post any analysis on state of the market from your trip experience - which region did you visit ?

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I just got back from the Luberon near Apt. Went to vist about 10 houses for sale with my buying agent. Many had been on the market a year, most were empty. I was told to offer 20% off asking and all vendors would jump at an offer 10% below asking. I am still going to hold off as I think in another 6 months they will be dropping considerably more.

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[color="#A0522D"][quote name='whiterabbit' post='1056803' date='Apr 8 2008, 12:31 PM']I just got back from the Luberon near Apt. Went to vist about 10 houses for sale with my buying agent. Many had been on the market a year, most were empty. I was told to offer 20% off asking and all vendors would jump at an offer 10% below asking. I am still going to hold off as I think in another 6 months they will be dropping considerably more.[/quote][/color]


Thanks for that

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On reflection now I am over my let lag (am in the US) a couple of other things worth mentioning:

Most newer villa resales (1995-2000) were terrible quality and way over priced in my mind. On average 400k euros for 120 sq meters with no view etc. Plus of course high purchase taxes. The highest asking were of course greedy English sellers.

All needed work and my wife and I would rather not buy at all than pay those prices for nothing special. You could easily put in another 50k plus for a decent kitchen etc (maybe we are too spolit from living in the US the last few years).

The decent historic houses were better but much more expensive 800k plus and needing work but are still probably a safer bet for a very long term hold.

Rental bookings are way down and many houses have no renters yet for this season.

Conclusion: Do not buy there right now and if you want to move there rent. While you are renting you can get a real idea of the market and potential opportunities. Also my feeling is the Euro will weaken in the medium and long term.

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[quote name='whiterabbit' post='1059513' date='Apr 9 2008, 12:23 PM']On reflection now I am over my let lag (am in the US) a couple of other things worth mentioning:

Most newer villa resales (1995-2000) were terrible quality and way over priced in my mind. On average 400k euros for 120 sq meters with no view etc. Plus of course high purchase taxes. The highest asking were of course greedy English sellers.

All needed work and my wife and I would rather not buy at all than pay those prices for nothing special. You could easily put in another 50k plus for a decent kitchen etc (maybe we are too spolit from living in the US the last few years).

The decent historic houses were better but much more expensive 800k plus and needing work but are still probably a safer bet for a very long term hold.

Rental bookings are way down and many houses have no renters yet for this season.

Conclusion: Do not buy there right now and if you want to move there rent. While you are renting you can get a real idea of the market and potential opportunities. Also my feeling is the Euro will weaken in the medium and long term.[/quote]

Agree. We are planning to relocate to SW France in early 2009 and have concluded that we will just rent for first year and see how the EURO/GBP and French property markets do. It will be a chance to really research the area in all 4 seasons before we commit to buying in France. Luckily we sold up in UK last summer so we don't have any UK property to worry about.

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Reports of prices falling in Dordogne according to this article in the Times...

[url="http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3732209.ece"]http://business.timesonline.co.uk/tol/busi...icle3732209.ece[/url]

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Not just the SW but this agent now has hundreds of unsold and reduced properties:

[url="http://www.frenchestateagents.com/property-houses-for-sale-in-france-recently-reduced.php"]http://www.frenchestateagents.com/property...tly-reduced.php[/url]

They really made me laugh when they put on their front page recently that interest rate cuts in the UK made it cheaper than ever to borrow and then buy in France. They obviously didnt consider the effect it would have on the euro-pound!!!!

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[quote name='claireinspain' post='1069335' date='Apr 14 2008, 08:57 PM']Not just the SW but this agent now has hundreds of unsold and reduced properties:

[url="http://www.frenchestateagents.com/property-houses-for-sale-in-france-recently-reduced.php"]http://www.frenchestateagents.com/property...tly-reduced.php[/url]

They really made me laugh when they put on their front page recently that interest rate cuts in the UK made it cheaper than ever to borrow and then buy in France. They obviously didnt consider the effect it would have on the euro-pound!!!![/quote]


Interesting that one of properties advertised actually mentions the fall in the value of Sterling versus the Euro as part justification for reducing the asking price. Perhaps if the vendors quoted the price in Sterling they might get more interest since it remove, from the sellers mind, some concerns over forex fluctuations. But not all - anyone moving out there with a UK source of income (eg pension) is going to find living costs much more expensive. Coupled with the negative changes to health care for non French residents and the difficulty in selling a UK property to raise funds, France will, I believe, lose its attractiveness for many buyers.

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We bought a detached house in the Perpignan area (South East France) 2.5 years ago. We recently improved it significantly by spending over € 30,000 An agency has valued it recently for less that we originallybought it!. We plan to keep it and retire there, so we don't really mind.
Our neighbours, who are french, had their house valued €50,000 less that a smaller house in the neighbourhood who was sold a few monts ago, after having been in the market for amost a year. Our neighbours think that the agencies give now low valuations a they get desperate to shift houses. They wouldn't mind selling it at a lower price, but they think that other homeowners are in denial and would not reduce their selling prices to a more realistic level. Hence they will not be able to afford buying another one.

Penny Pound

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My friend lives near Annecy and is convinced that prices are still rising!

Ant one got ant information on that area?

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