_France's prime markets step up a gear

The uptick in market sentiment occurred not after Macron’s victory on 7th May but a few weeks prior to the election. Online searches for French properties on Knight Frank’s website increased by 97% in April compared with March whilst across the country 30,909 new homes changed hands in the first quarter of 2017, up 8% compared with the same period in 2016 and up 29% compared with 2015.

With interest rates at historically low levels, an upturn in GDP growth forecast and consumer sentiment at its highest rate since 2007 France’s economic fundamentals are looking brighter than they have for some time. Add to this the forecast 3.2% rise in the number of households over the next five years and the 82 million tourists that visit France each year – it remains the most visited country in the world – and the demand side of the equation for homeowners looking for a rental return looks assured.

After years of uncertainty – both political and economic – and worrying ruminations over taxes there is a sense amongst prime lifestyle buyers that it is time to act and domestic buyers are joining foreign buyers once more. 

It would be remiss to assume however that there are no headwinds. Brexit, a weak Euro (for non-Eurozone owners looking to sell) and shifting price points as buyers look to spread risk and avoid overexposure to one particular country or currency are the key challenges. The €2m-€4m price band is the most active market segment. Those locations where vendors have acknowledged the market’s correction are experiencing higher sales volumes.

Each prime region of France has its own set of positive indicators; the report highlights some of the most salient trends evident across Paris, Provence, the French Alps, Cote d'Azur and Gascony. For the full analysis read our France Insight Report, extracted from our France Inside View which also features a market overview and buyers' guide.