Brexit Helping French Property Market Recovery

The French property market has taken longer than most to recover from the global financial crisis in 2008, but solid signs of recovery can now be seen.

Stagnant wages, rising taxes and low economic growth meant that the French property market has lagged behind, while other European countries saw property prices rising again. But a new president and greater optimism has sparked a French property renaissance.

Another factor helping to boost French property is believed to be Brexit.

Since the UK decided to leave the European Union in March 2019, many British overseas investors interested in French property have brought forward plans to buy in France while they still can with the ease of European Union status.

In addition, many large London-based financial companies are setting up new headquarters in Paris, bringing well paid employees who in turn are purchasing residential property in the capital.

Property prices in Paris have now been rising steadily for over a year, and are expected to continue rising all the way through to when Britain leaves the EU in March 2019.

But it is not just Paris where property prices are rising.

With a few exceptions in the south of France, such as Montpellier and Toulouse, almost all areas of the country are seeing property price inflation.

The first quarter of 2017 saw property prices in Bordeaux soar by 8.7 per cent, whilst Nantes enjoyed a rise of 6.6 per cent. Other cities such as Lille, Nancy and Strasbourg also saw rises of 5-10 per cent.

Nationally, average prices of apartment have risen by 3.2 per cent and houses by 2.3 per cent over the last 12 months, when compared to the same 12-month period in 2016.

The rise in French property prices seems to be driven by new developments, which currently seem more popular than older style apartments and houses, with buyers and investors showing little interest in renovation.

It looks like the French property market is building a new start with new builds.