Clé France

The French property market has been a good investment for many foreign buyers over the last year with prices of flats and houses rising in the most sought after areas. In rural areas prices are stabilising after dropping for a number of months so now is a good time to buy.

Above: a lovely country cottage with two bedrooms and another cottage next door with two bedrooms for your friends! CXZ00269 - 100,000 euros FAI in Lower Normandy.

Prices have risen 4% and 8% respectively in Nice and the Cote d’Azur, whilst prices in the Paris region have risen by between 3.8% and 6.2% for houses and flats, according to data release by government controlled Notaires de France. Normally the rest of the country will follow this trend after a number of months of prices dropping then showing little movement.

At the same time, the numbers of UK buyers in the Paris region has remained stable at around 2% of all transactions, according to data from BNP Paribas, whilst for France overall, the percentage of UK buyers dropped slightly from 11% to 9%.

Buyers from the Middle East, Asia and Eastern Europe are regarding the Parisian market as a good buy as it is regarded as a safe haven, a bit like London.

Elsewhere in France, the story is more mixed, with prices stable or rising, but by more modest amounts, these areas not benefiting so directly from the overseas buyer.

One contributing factor to the health of the French mortgage market is certainly the willingness of the banks to lend. It is also true for the UK buyer that banks are now lending more readily, in France lenders have stood firm and continued to offer attractively prices mortgage funding.

Find out more about UK mortgages and borrowing options here.

Find out more about France mortgages and borrowing options here.

Low interest rates are going to sustain the property market in France over the next few years, with prices likely to remain stable. There are many bargains to be had in the current climate where a lack of domestic buyers is opening up opportunities for British and international buyers to snap up desirable properties.

Exchange rates also affect who is buying property in France. For the British buyer the position is now healthier than it was some months ago with the pound trading at around €1.21 from €1.14 a year ago, so giving buyers an effective price discount.

For dollar linked currencies, exchange rates have also moved broadly in their favour over the past 12 months making property cheaper for the dollar based buyer, but the euro is now strengthening again to remove some but not all of that advantage.

For more information on the currency service I can provide please feel free to contact myself Rob Harold from Foreign Currency Direct follow this link or phone and ask for myself and quote Cle France on our Freephone 0800 328 5884.

You may email me directly at This email address is being protected from spambots. You need JavaScript enabled to view it. and quote Cle France with your requirement and I will explain the options that are available to you in getting the best exchange rate.

Blog submitted by: David at The French Property Network - Cle France.