Posted on 06 March 2017
If you had to bet your house on how the Brexit vote would impact demand for French property from British buyers, you’d probably confidently assume it would dwindle. After all a weakening pound has driven up prices on the continent, and Brits would surely be more cautious with their finances after the Bank of England predicted tough times ahead.
British buyer’s love affair with France
In reality you would be left eating humble pie as you handed over the keys to your home. Positive data caused the central bank to renege on their claims, before fresh figures revealed that French property enquiries from British buyers have increased by 34% over the past three months, when compared with the corresponding period last year. This upward trend has contributed to a recovery in the French property market, with prices in key cities up across the country and demand growing. As has the ultra-low interest rate environment in Europe, which enables the financially savvy among us to lock in low mortgage rates that could swell our budget.
If you want to take advantage of a buoyant French property market, click here to download the FREE guide to buying a home in France
Presidential election checks market growth
In the short term, the uncertainty surrounding the upcoming French election in May has the potential to slow down this upturn over the next couple of months. On one side of the debate we have the anti-EU, far-right candidate Marine Le Pen, while on the other we have the scandal ridden, centre-right candidate François Fillon. Making it difficult to predict what tax changes the next government might make. Looking further ahead, prices are forecast to rise around 2% for apartments and 2.7% for houses in the coming year as the French property market continues to go from strength to strength.
Prices rise in high altitude ski resorts
So how has a resurgent property market impacted the ever popular French Alps? You can’t do much skiing or boarding if you don’t have enough snow, creating a rising demand from overseas buyers for property in snow sure, high altitude resorts like Val d’Isère and Tignes. A development that has led to stable or rising prices in resorts located at 1,800 metres and above. For example, the L’Espace Killy ski area, which covers both resorts, is often regarded as having the most reliable snow in the Alps, primarily due to the extent of high altitude skiing – 60% of its 300km of slopes are above 2500m. Investors have also seen good rental returns in these higher resorts, largely due to consistent dumps of snow over the past few seasons, resulting in extremely high occupancy levels. Now your investment in bricks and mortar on the slopes is starting to look like a very sound one indeed.
For a step-by-step guide to buying a property in France, download the France Buying Guide by clicking here.