Why We Are Watching the French Property Market in 2020

France has
always been an attractive place for anyone looking to move abroad. It is also a
good time to look at whether it could be the right place to invest in property
just now.

A Big, Varied Country

France is the
42^nd biggest country on the planet but the biggest in Western Europe.
This means that the property market is huge. From sprawling cities like Paris
and Marseille to mountains, coastline and rolling countryside, there is
something here for every taste.

Whether you
like skiing, heading to the beach or making your own wine, there are locations
here that will keep you happy.

In terms of the
properties for sale, there is also a lot of variety. It has traditionally
offered terrific value for money in terms of big farms and other rural
properties, while the cities have a wide range of urban options.

The Current Property Market  

The property
market in France is going through an excellent spell right now. The official French
notaries website pointed out in October 2019 that the market
is buoyant just now. They noted that the number of transactions has been
growing month on month.

Their figures
state that over a million completions were done between June and October last
year. The growth rate was 10.6% for the year to October.

A different
set of figures shows us that prices have risen for the 13^th
successive quarter. The average increase was around 3% in 2019, which was the highest
rate of price rises since the final quarter of 2011.

There are some
interesting factors behind this price surge.

• A strong, consistent level of demand
• A fairly limited supply of properties (far fewer new houses are being approved)
• Mortgage rates that are at historically low levels
• Foreign buyers taking advantage of the excellent value here

It is worth noting
that growth varies widely by city and region.  If you are thinking of investing in property in
France then you need to research the local market carefully. Some cities have
seen growth of 8% or 9% in the last year while others have stagnated.

Predictions for 2020 and Beyond

It is expected
that the property market here will continue to grow at around 3%. This is
fairly modest but remember that in some places the true figure will be a lot
higher.

The number of
British buyers has
dropped slightly, from being 3 in 5 prime purchasers in 2014 to 1 in 5.
However, an influx of buyers from Belgium, Scandinavia and the Middle East has
helped fill this gap.

The French
property scene isn’t as volatile as in places like Spain and Portugal. The
prices fell during the economic crash of 2008 but not as heavily as in other
countries. Since then, they have reverted to growing roughly in line with
inflation or a little above.

The Best Places to Buy

Paris looks
like a particularly good bet in 2020. The Grand Paris
Project will see the capital’s infrastructure boosted in time for the 2024 Summer Olympics to be held here.
It is currently the biggest construction project in Europe and should see
property prices climb more steeply than in other parts of the country.

The South of
the country is particularly appealing to Middle East investors. This influx of
money from abroad should continue to boost the prices here more than in most of
the North.