Local buyers return to French market
Local buyers have returned to France's property market, as September sees routine resume for borrowers and lenders.
The beginning of September is known as La Rentrée, notes John Busy, Private Clients Director at French Private Finance, as things begin to get done again following the summer holidays.
"The French property market for non-resident buyers looks to be in the same good shape it has enjoyed since September last year," he comments, with sales of prime and super prime assets continuing to go through each month with the mid range of the market showing "very good activity".
Despite small increases recently in the range of 0.1 per cent to 0.2 per cent, partly driven by the rebound in the 3-month Euribor rate, French mortgage fixed rates are "stable", he adds. The only potential surprise has been the impact of China's economic slowdown upon investors, some of whom chose to put money into the euro as a safe haven, weighing down the currency.
Routine, though, also applies to overseas buyers in France, where the euro's weakness and relatively low prices have encouraged purchases, particularly from the Brits, who have enjoyed above average spending power on the back of sterling's strenght.
"The confidence that investors have in the Eurozone is a good signal for the European property market. The fundamentals are still there with a relatively weak euro and ultra low interest rates for the medium term," adds Busby. "With no signs that the ECB will raise its base rate the buying spree from international investors in France should continue."