Photo: Erminig Gwenn
French property has always been a popular choice among international house hunters, thanks to the country's strong economy, world-famous culture and relaxed lifestyle. In 2014, though, the economy is flat-lining and demand for French real estate appears to be weakening.
New data from Spain's leading property portal, Kyero, which lists over 175,000 properties from 2,500 estate agents, has revealed that buyers from France are increasingly heading across the border to pick up Spanish holiday homes.
Kyero is not the only one to notice a shift in behaviour. Visitors to French property sites, which totalled 14.3 million in March 2013, fell to 13.4 million in the same month this year, according to Lloyd Mullender, media consultant for Médiamétrie/NetRatings.
Mullender told the French Federation Of Internet Real Estate (FF2i) at their annual meeting that visitors to French portals fell 900,000 in 12 months, reports ImmoMatin. The figures are echoed by TheMoveChannel.com.
Indeed, while a report from BNP Paribas, which used data from Notaires across the country, found that the number of Brits buying French property had rebounded to one in four in 2013, and historic low mortgage rates saw demand for the country surge at the start of 2014, French real estate has steadily become less sought-after in 2014's summer months.
In June, France fell to the third top destination in the portal's Top of the Props Chart, before slipping into fourth by August, when it accounted for 5.95 per cent of all enquiries, below Spain (9.51 per cent) and Portugal (6.8 per cent).
The French leader is undergoing a similar dip in popularity, as his Prime Minister replaced the cabinet last month. The surprise move saw Minister of the Economy Arnaud Montebourg leave, after criticising the country's financial policie, as President Hollande's socialist party attempts to reduce the deficit. In his place, the younger, more right-wing Emmanuel Macron is tasked with lowering debt while boosting the stagnant economy.
While confidence in the President is low, prompting some uncertainty over his future come the next election, Home Hunts argued earlier this year - before the cabinet reshuffle - that the situation was favourable for some buyers, especially those looking in Paris, where prices have fallen.
"Our savvy investors know that President Hollande will not be re-elected and the right wing are more than likely to come back to power – whether this be Sarkozy again or another leader," Hervé Lévy, Regional Manager Paris & Surroundings for the luxury estate agency, tells OPP Connect. "This is likely to encourage property investors back again and so it is really the time to buy now; whilst better prices can be negotiated and there are really amazing apartments and mansions on the market."
Now, though, with Hollande appointing a right-leaning official as Minister of the Economy, is France still the top choice for investors?
The country remains in the top five most popular countries on TheMoveChannel.com, which is testament to its overseas appeal even during tough economic times. Will the new Economy Minister make a difference? For international buyers, it is hard to say, although for local buyers, it appears that Spain is currently the sunnier option.
Some 18.2 per cent of overseas purchasers of Spanish accommodation during the past 12 months were French, according to the figures from Kyero, making them the second largest group of foreign buyers of Spanish property. Although they have some way to go before they rival the British figure (54.5 per cent of purchasers), French buyers have already more than doubled those of their next nearest rival, Germans, who account for 7.5 per cent.
Martin Dell, Kyero's Director, comments: "The French economy is one of the strongest in Europe at the moment, providing French citizens with great buying power. With the French property market looking pretty flat, many are casting their eyes further south in search of holiday home bargains that can satisfy both investment and lifestyle requirements.
"property in Spain is incredibly cheap right now and for French buyers, being part of the Euro, means that the headache of currency exchange is removed from the purchase process."
France, Property Investment, property in Spain, French property, Spanish property, French real estate