Friday, 4 December 2009

Property trends for 2009 in France




As it is December, it is time to reflect a bit of the past 11.2 months in the property market in France, and more pertinantly, in the Aude, Languedoc.

What have been the trends? Well, fewer Brits and Irish - for sure! With € and £ siddling at 1:1 there has been a market decrease in your average Brit buyers. I have seen a good handful of upper budget buyers who are coming here to live. The climate , in all ways, is better here then the unpredictability of the UK economy and outlook.

The home market here is strong. Banks, over the last decade, have been very tight with lending money, and even more so these days - hence le Crunch here is one of the
least damaging in Europe.

The first time buyers - aged 21 - 30 something are our strongest clients as well as Northeners preparing for their retirement in our bit of paradise down south. The former are being required to have a deposit of around 10-15%. The market is moving here, many people cashing in on interesting buy to let schemes being offered by the French government.

Here is a synopsis of how the rest of France has weathered this year - an extract from Sextant Properties:

Indeed, the current situation favours purchasers rather than vendors, and most are accepting offers that would have seemed comical just a few months ago. Everybody is in agreement that the first six months of 2009 should remain a buyer’s market and as such be an excellent time to buy in France. Then it would not be surprising to see prices go up again, and then, as a consequence, the return of mass purchasers; the best deals will be gone by then as vendors won’t be in a position where they have to agree to low offers.

In the Cotes d’Armor department of Brittany, which has always been the most popular market with British expatriates, not only for its historical connection with the British isles, but also because of its long-established transport links with the UK, the average cost for a house is now 161 540 €; even though Brits purchased less properties in this corner of France over the last year than previously due to the economic downturn, they still represented 25% of buyers in the first part of 2008. Areas further afield like Loudeac or Carhaix Plouguer remain favourites as prices are considerably cheaper than resorts closer to the sea like Saint Malo for example; it is not unusual to see habitable properties go under 50,000€ in traditional little villages such as these.

In the Dordogne, also a popular destination for property hunters from the UK, the average cost for a house is now 150 100 €; the credit crisis is now having a dramatic impact on the prices of properties that have, in the past, been popular with British buyers, especially the higher value and stone houses properties that are at reduced prices as owners are conveying a willingness to accept much lower offers. In the North of the department, in hamlets like Nontron or small villages such as La Coquille, prices remain really cheaper than the area surrounding Bergerac (where one would find the international airport) and guaranteed bargains are to be made by people with a good knowledge of the market.

In the Limousin, which remains the cheapest place in France for someone looking to purchase a property, the average cost for a house is now 92 200 €; the Creuse department remains the cheapest of all with a 2-bedroom house costing an average 68 600 €. Prices are expected to drop a further 5% to 10% in the course of 2009, but nobody really expects it to go below this as prices are already very low. On top of that, the opening of the new airport in Brive la Gaillarde (expected soon) should see prices in the Correze department increase, especially in the villages that could be reached in less than 1 hour from the international airport.

In the Languedoc region, the favourite place for brits looking for the sun, alongside the French food, wine and way of living, the average cost of a house is now 209 500 €; the Aude department, popular with people looking around Carcassonne and Perpignan, or generally close to the sea, remains the cheapest with a 2-bedroom house costing an average 157 900 € - the Gard and Herault departments, most popular with people looking for a Provence-style move, are very close in prices, with the average cost for a house being respectively 231,500 € and 232 000 € - prices in this region are expected to drop a further 5% to 10% over the next year but most properties are having their prices reduced and owners seem content to accept much lower offers in this corner of France also.

Finally, in the Normandy region, also a traditional destination for property hunters from the UK due to the proximity to England, the average cost for a house is now 156 800 €; prices have decreased during 2008 and are expected to stabilise in 2010.

As a conclusion, the uncertainty in Britain in particular and in the world in general may encourage people to buy in France. Indeed, compared with the other overseas markets, France offers a very protective purchasing system and low capital gain tax, and is a long standing tried and tested market without the various risks that some of the emerging markets offer. And, in today’s current climate, safety is priceless.

Digg It! Stumble Delicious Technorati Tweet It! Facebook

Enjoy a romp around the Aude, Languedoc

This Aude Languedoc property site is designed to give extra credibilty to buy property and find property for sale in the Aude, Languedoc as a holiday home or main residence.

There is detailed information on all you need to know about buying property in France and especially in the Aude,Languedoc. This can be found on http://www.languedoc-property-site.com

If you come to the Aude to buy Property, and need a Gite to stay in, have a look here:
http://www.find-gite-aude.com

Happy romp!!

Followers