The news of Insee, the French Statistics Office It was that 2018 established a new record for property sales in France, with 970000 sales excluding sales of new homes, so slightly above the previous record of 2018. The same factors are in operation, interest rates for home loans to the minimum records that feed the home.
The high demand combined with less properties of the AV sheet result in the highest price increases in Paris and in dynamic cities such as Lyons, Bordeaux and Toulouse: the price increases were 5-10% per year in those cities approximately the last 2 years. For the rest of France, after years of stable or decline prices, there has been a 3% increase per year in the last 2 years.
And in southern France, the Provence Alpes Cote d’Azur region, for the first time in years, housing prices have increased above 2% in 2018, since abundant house shares in the market are beginning to decrease.
What are the foundations for the real estate market in southern France?
In Provence and the French Riviera, the +10 million tourists who come to the region every year are potential housing buyers when they reach retirement or save enough to buy a second house. Then, demographic foundations are excellent in the long term.
In short -term fear stories in the media in Brexit, they are braking some buyers of the United Kingdom, just like stories in Jaunes Gilets, but there is not much appetite in 98% population for another French revolution …
And when Macron ads are implemented in tax cuts, confidence in the economy and the real estate market should continue to improve.
So, if I was waiting to decide when to buy, do not miss in 2019 on exceptionally low interest rates and the beginning of real estate market recovery!
