2020 A Good Year for Property?
Joanna Leggett from Leggett Immobilier sums up the current and future market position, especially now that we have a broad idea of the direction that Brexit is taking.
Has the local market been affected by a lack of UK buyers due to Brexit?
No not at all, we have had an exceptional year but one change we have noticed is the ratio of UK buyers who are looking for a holiday home versus a permanent one. In the last few years the split has been relatively even at a 50/50 ratio but this has shifted in the last 12 to 18 months with nearly 80% of UK buyers looking to invest in a permanent home.
What do you think will happen with buyers from the UK as a result of Brexit?
Brits have been buying in France for decades and there has always been a love of France so I don’t feel we will see a massive change.
Which other nationalities are buying here?
As per the BNP Paribas market reports and also what we are seeing, there are a number of nationalities buying across France and in the Nouvelle Aquitaine, including buyers from Holland, Belgium, Switzerland, Italy and the USA. The British buyers represent 27% of the international market with 18,7% Belgian buyers, 7.2% German buyers, 6.8% Swiss, 5% Dutch and 2.9% American buyers.
Has there been an influx of properties onto the market because people are selling up and returning to the UK?
No there has not been a notable increase in people selling due to Brexit. People, of course, do “go home” but it is generally for personal reasons including being closer to family, grandchildren etc. However with the euro being strong it was a good time to get more pounds for your euros but the pound is now becoming stronger again.
Have house prices reduced or increased over the past 12 months? Is 2020 a good year for property?
In provincial towns we have seen a price increase of as much as 9% , with a slight increase in property prices in rural areas of up to 3%. That being said, there has been a record breaking 1 million sales made in France in the last year which is much higher than sales in the UK and is indicative of a strong market and (in most cases) a quicker sale.
When is the best time to put a house on the market?
Spring is always a good time to put your house on the market. People are coming over on holidays or are looking for a change and France, especially this area, is just beautiful at that time of year.
Is 2020 a good year for property?
Once a buyer has been found, what is the average time that it takes for the sale to go through and can it be speeded up?
Unless a seller strikes lucky and sells quickly, what is the average time it takes to sell a house here?
The average sale in France takes a minimum of three months to close. However, some sales do take longer depending on the property being priced right, the buyers financial situation , i.e. are they ready to purchase or waiting on their house to sell before being able to purchase, are they waiting for their mortgage to be accepted, etc. Also, it depends if the vendor has all of their paperwork in order including a fosse report, DPE, diagnostic tests swimming pool proof of security etc. as not having these documents in place can hold up a compromise de vente being signed.
How do you choose the right agent?
Whether you are looking to buy or sell your property, choosing the right estate agency is a very important decision. You need to be in safe and experienced hands. There is a good reason why we have been voted “The best estate agency in France” for seven years in a row by a prestigious panel of judges, and that is our commitment to the very highest levels of customer care.
First published in the January/February 2020 issue of The Local Buzz