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France holds together

28th November 2008 | back to article listings BACK    print this article PRINT

With the credit crunch decimating property prices in many countries, good news has sometimes been hard to find. But in France, a country where speculation and sub-prime are activities that somebody else does, the market has been hailed as a bastion of stability in an uncertain world.

It is in the context of this that new figures have been hailed as evidence of the ability of the country to enjoy rising prices even in the midst of the credit crunch. The French National Estate Agents Federation (FNEAF) has produced new figures showing that after seeing increases of 7.1 per cent in 2006 and 3.8 per cent in 2007, French property values rose by 1.7 per cent in the 12 months to July 2008.

Of course, some may say that these figures do not take into account what happened since July and among those voices is Trisha Mason, founder and managing director of French property specialist firm VEF.

She said: "Generally, at VEF, we do not think that prices are still rising, whichever way you look at it. However, what we are sure of is that they are not falling significantly either."

This, however, is an overall picture, as she explained that there are geographical variations that may encourage bargain seekers. "There are certainly some good price reductions in all parts of France where the slowdown in the market has encouraged desperate vendors to drop prices," she noted.

So the price picture may be a stable one overall but also one with good opportunities in particular places.

But for Liam Bailey, the market analyst for investor portal Property Abroad, the prime appeal is itself the very stability of France.

He explained: "France has seen such continued - if steady - increases in property values, mainly because it never really became swept up in the overseas investment boom." This, he noted, meant that it was elsewhere - such as emerging markets with very low prices - that investors seeking quick profits and high rental yields snapped up new and off-plan properties.

With many of these emerging markets now off the radar amid the credit crunch, some may look back to France and the very different prospects it offers.

Describing these, Mr Bailey continued: "France never exactly offered an abundance of these properties, and so has, and will remain to be, one of the favourite places for people [especially Brits] buying a resale property as a holiday home."

He added that FNEAF had identified areas such as the south of France as enduringly popular areas.

So it seems that whether it is about seeking stability or hunting for bargains in those areas where lower demand has pushed prices down, France still has much to offer.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4513.html. Alternatively, please see our full press release archive.

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