CHRISTMAS OFFER Subscribe to France Magazines today CLICK HERE

Will President Macron have a positive impact on the French property market?

PUBLISHED: 13:52 12 May 2017 | UPDATED: 17:36 12 May 2017

French property sales at 10-year high © Monique Pouzet / Fotolia

French property sales at 10-year high © Monique Pouzet / Fotolia

Archant

Property sales are at a 10-year high and prices continue to rise and property agents are optimistic about the impact President Macron will have on the French property market

What effect will the election of President Macron have on the French property market?

The election of Emmanuel Macron as the new French President was met with relief by many property agents and seen as a positive result for the French property market. Although much will depend on whether his party can obtain a majority in the legislative elections in June, there are several policies already announced that could impact the property market.

“The property market, which has been accelerating in 2017 and has continued to do so since Sunday’s announcement, is expected to remain stable over the coming months,” says Athena Advisers. “Macron will be looking to build on this rather than change it, however, some suggestions are already in place to help boost the market. The wealth tax will be reviewed to focus solely on property, which will motivate French owners to sell their properties, in turn creating increasingly more opportunities on the market for international buyers.”

Tim Swannie, Director of Home Hunts, agrees, “The property market has been improving throughout France for the past couple of years and his government will want to build on this. Macron is committed to reducing some of the taxes for property owners and simplifying the fiscal framework in France. He is unlikely to reduce the capital gains tax but has promised to bring in a certain number of changes. These include the exemption of the annual taxe d’habitation, which the majority (80%) of households pay, reducing dramatically the wealth tax paid each year and simplifying rental contracts.”

“If he is able to implement his policies the (already strong) property market will receive a real boost,” says Trevor Leggett, chairman of Leggett Immobilier. “Domestically, people will feel encouraged to invest in property – the self-employed will find it easier to get a mortgage and corporations will want to bring their businesses to France. International buyers will take real heart in the President’s wish to retain a strong and unified Europe. Buying their own little parcel of France will be a real goal for many from the UK.”

___________________________________________________________________________

Related articles

Should property buyers be concerned about Brexit?

Is it better to own a property in France or the UK?

___________________________________________________________________________

Sales of French property from 2000-2017 © Notaires de FranceSales of French property from 2000-2017 © Notaires de France

French property sales at an all-time high

Enthusiasm for property buying remains high in France with the annual number of properties being snapped up topping the peak of a decade ago, according to the latest official report from the Notaires de France. There were an estimated 867,000 properties sold in the 12 months to the end of February 2017, a year-on-year increase of 7.7%. This comfortably beats the previous all-time high of 837,000 set in May 2006 before the slump induced by the global economic downturn. However, Notaires de France puts the data into context by pointing out that the number of actual dwellings in France had also risen dramatically since the turn of the new millennium. As of last year there were more than 35.5 million homes in France, 19% more than in 2000, whereas the number of sales has risen by only 7% over the same time period.

Why is the number of transactions so high?

The report put this increase down to low mortgage rates stimulating the market and continuing tax breaks keeping the market attractive and stable. The report also speculates that the signs of small rises in lending rates seen recently are causing potential buyers who were waiting for the right moment to commit to a property purchase due to fears that rates will continue to increase.

___________________________________________________________________________

Related articles

Which areas of France are most popular with British buyers?

French property market update: January 2017

___________________________________________________________________________

Property prices continue to increase

Property prices are also continuing their upward trend with a year-on-year increase of 1.7% in the fourth quarter of 2016 on resale properties (older homes rather than new-builds). Apartments rose in price by 1.9% and houses by 1.5%.

Only three major French cities saw a dip in apartment prices over the year – St-Etienne, Toulouse and Marseille. Booming Bordeaux has seen a staggering 11.2% rise in prices over 2016, thanks in part to its revamped waterfront and the impending launch of a new high-speed rail link with the capital. Sharp rises were also recorded in Strasbourg (6.8%) and Lyon (6.2%).

French property prices in Q4 2016 © Notaires de FranceFrench property prices in Q4 2016 © Notaires de France

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Complete France visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Complete France staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Complete France account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More from French Property

Wednesday, November 28, 2018

Don’t get caught out – it’s as important to understand your legal obligations when selling a property in France as it is when buying one

Read more
Buying guides
Wednesday, October 31, 2018

Ruth Wood looks at the French property hotspots where British buyers search for their dream home

Read more
Aquitaine
Tuesday, November 20, 2018

Seen a bargain French property that just needs a bit of work to turn it into a dream home? If your heart is set on a renovation project, do your sums first, advises architect Nick Adams

Read more
New-build property in France
Tuesday, October 9, 2018

A new apartment development is available for investment in the Alpine expat haven of Annecy in Haute-Savoie

Read more
French Alps
Wednesday, November 14, 2018

Why your trusty high-street bank might not be the place when it comes to getting the best currency deal

Read more
Buying guides
Wednesday, August 29, 2018

Don’t be bamboozled by strange foreign exchange terms – this handy currency transfer jargon buster explains all!

Read more
Buying guides
Yesterday, 16:02

Do you know how to safeguard your UK property from con artists while you’re living or holidaying in France?

Read more
Thursday, August 23, 2018

Is a ‘notary public’ in the UK the same as a ‘notaire’ in France?

Read more
Buying guides
Wednesday, September 19, 2018

With income tax soon to be deducted at source in France, how might this affect you?

Read more
Working in France
Friday, August 24, 2018

Find out how the new flat tax of 30% on income from financial investments works in France

Read more
Subscribe for

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

France Forum

Questions about France? Visit our free France forum to get help and advice from thousands of other Francophiles and expats. Topics include: property, tax, law, travelling, pets, education, healthcare and much more.

Join the forum

Most Read

Join us on social media

France magazine
Living France magazine
French Property News magazine

Enter our competitions

Win books, DVDs, travel and even holidays in France in our great competitions! Take a look at our latest competitions…

Enter now