ââ¬ËAfter years of gentle decline and sometimes sharp falls, the French housing market appears to be picking up.ââ¬â¢ Thatââ¬â¢s the conclusion of the Guardian who reports that increasing numbers of international buyers are returning to the popular destination.
Average property price increases in 2010 as buyers return
Graham Downie, who runs Cognac Property in western France, told the newspaper that ââ¬Ëinterest from international buyers dropped substantially at the end of 2008 but transaction numbers are rising once moreââ¬â¢.
Recent figures from the Fédération National de l’immobilier (FNAIM), the French estate agents’ body, found that the average price of all homes rose 6 per cent in 2010 and property purchases exceeded 700,000 ââ¬â a 15 per cent rise on 2009.
FNAIM president René Pallincourt said: ââ¬ÅPrices, after having fallen quite significantly ââ¬â approximately 10 per cent if we look at the end of 2009 ââ¬â have regained a certain strength.ââ¬Â
The Guardian reports that ââ¬Ëthe average price of a home in Burgundy is now ââ¬148,400 (ã129,000), while in Languedoc the figure is ââ¬208,800 (ã182,000) rising to ââ¬384,200 (ã334,000) in Provence.
ââ¬ËThe federation and lenders, such as Credit Agricole, predict rises of about 3 per cent this year, with larger increases in cities.ââ¬â¢
More Brits looking for Euro mortgages to buy property in France
More and more Brits who do not have the cash to buy a property outright are seeking French mortgages. John Busby of Athena Mortgages told the Guardian: “The days when homeowners released equity from their UK properties to pay for a dream house in Provence are a distant memory.ââ¬Â
Mortgages in France require a deposit of between 10 and 30 per cent but payments to UK home loans will be taken into account, as Mr Busby explains: “French mortgages work on the basis that the total of all [payments on] mortgages and loans held by the borrower do not exceed one-third of their income. This means monthly repayments on a UK mortgage will be taken into consideration.”
