French
Property Investment
Interest in France and Spain
declining but still ahead of the
rest of the world.
According to a recent property market and investment report interest in
Spain has decreased by 2% since 2006 and is 10% lower than interest
levels in 2005. Interest in France remained steady from 2006 to 2007
however enquires last year are down 7% compared to 2005.
Mark Bodega, Director at HiFX, who help over 30,000 people buy property
abroad each year, explains “It’s easy to see why investors in particular
are turning their backs on Spain and examining new markets at an earlier
stage in their growth cycle. In August 2007, the national median price
for property sold to overseas buyers in Spain was approximately
€250,000. In Bulgaria the average price was closer to €60,000!
“With an abundance of low cost airline routes, short flight times and
the great weather both countries will always be a favourite with British
buyers and we expect them to remain so in 2008. However, overall, their
lead is closing as the investor population continues to turn its
attention to emerging markets in 2008.”
Credit crunch will not squeeze
French property market
The well documented global credit crunch will also affect property tends
in 2008. However, unlike in some overseas property markets, experts are
predicting the squeeze will have far less of an impact on the French
market. Approximately 95% of French loans are fixed rate and French
banks are traditionally more conservative when it comes to lending money
to both French and international buyers. As a result French economists
are not predicting any big rises in interest rates. Overall, prices
across France are not expected to rise significantly this year, nor are
they likely to crash. However, as always, there will be regional
differences.
