Tuesday, July 23, 2013

French property prices holding up

Despite the 'crisis' and rumours of French property prices tumbling, the latest figures from INSEE* and Notaires de France and based on actual transactions completed, confirm that prics remained stable in the first quarter of the year overall.

There are slight regional variations but the average reduction recorded has been under 2%. Sales of second homes, popular with non-French buyers, represented just 7% of the overall property market or around 45 000 sales. Note that in Mediterranean coastal and other major holiday areas up to 75% of the local housing stock can be represented by second homes.

As another 'stimulus to boost the property market' President Hollande has announced a special one-off reduction of 25% on capital gains tax charged on second homes for the 12 months from 01 September 2013 to 31 August 2014. The timescale assumes a smooth passage of leglislation through the French parliament.

* the French national research organisation.