Less immigrants purchasing in France as housing market shows signs of improvement
Foreign buyers are not yet going back to the French property market with the most recent figures from Notaires revealing that numbers have actually dropped virtually threefold in the last decade.
Abroad purchasers comprised simply 1 % of property sales in 2015 compared with the peak of 2.8 % in 2006, just before the worldwide recession. This number dropped to 1.4 % by 2014 then to 1 % in 2015 and numbers are not most likely to raise much in 2016.
But there are signs that the property market in France is picking up with figures, which leave out new builds, from the Notaires revealing that general house rates increased by 0.4 % in the last quarter of 2015 while house rates rose 0.3 % in cities, however are down 1.6 % and 1.9 % year on year respectively.
In Paris and the surrounding area house costs increased by 1 % in the 3rd quarter of 2015 and apartment prices were up by 0.7 %, House costs are now down 1.1 % and 1.3 % year on year respectively.
In rural areas house costs increased by 0.2 % quarter on quarter but house costs fell by 0.1 %. House rates are down 0.7 % year on year and home prices down 2.3 % year on year.
They predict a stable market in the coming months with apartment or condo rates up around 0.4 % and house prices by 1.4 % by the end of the very first quarter. The report adds that a year on year increase in sales of 12.5 % as much as completion of November 2015 bodes well for the market in 2016. This level of sales has not been seen since spring 2012.
British purchasers still comprise the majority of overseas buyers, buying some 32.6 % of foreign bought property in 2015. The next most typical citizenship was Italian, at 15.3 % and Belgians at 11.1 %.
The most popular parts of France for British purchasers stay old favorites like Normandy, Brittany, the Dordogne and the Loire. They buy simply 7 % of foreign owned property in Paris.
In Normandy and Brittany some 72 % of purchasers are British, 10 % Belgian and 3 % German, while next door in a suburb covering the Loire and Dordogne some 78 % of foreign buyers are British, 6 % Belgian and 5 % Dutch.
The British are likewise the most significant group of foreign buyers in Aquitaine and along the Spanish border towards Provence at 42 % with 15 % Belgian and 12 % Spanish or Portuguese. While in the Alps and down the Rhone some 32 % are British, 22 % Swiss and 12 % Belgian.
In PACA the biggest group of foreign buyers is Italians at 28 %, British at 15 % and Scandinavians at 12 %. In the North East 28 % are Belgian, 17 % British and 14 % Dutch while in an around Paris 20 % are Italians, 8 % American and 7 % British.
Despite the fall, the report from the Notaries shows that the monetary climate for foreigners, particularly British individuals due to currency rates, for purchasing a house in France continues to be favorable.
The Notaries report states that since the spring of 2015 the property market has actually been fluid but rates do vary on a local basis and depends very much on accessibility. In central Paris, for instance, there is a shortage of studio and little flats which implies that asking prices are being realized without any space for settlement.
But a breakdown of the figures reveals significant regional variation. The most significant quarter on quarter succumb to house prices in cities was a decline of 11.7 % in Saint Etienne, followed by Toulon down 9.6 %, Nantes down 5.8 %, Dijon down 4.5 %, Lille down 4.2 %, Besancon down 4.9 %, Montpellier down 2.2 % and Toulouse down 1.8 %. Elsewhere rates were steady.
For houses in cities the greatest rate fall was in Besancon where values fell by 10.6 % quarter on quarter, followed by Toulon down 6.7 %, Nice down 5.5 %. Dijon down 4/8 %, Nantes down 4.5 %, Marseille down 3 %, Lyon down 1.7 % and Orleans down 0.2 %.