Brexit has not deterred Britons from purchasing property in France in 2018.
According to Tim Swannie, Director of Home Hunts, a property brokerage firm based in Marseille, France, the weaker pound and Brexit negotiations will not deter British buyers, who will continue to buy properties in France throughout 2018, thanks to positive tax reforms and their desire to secure a property before the Brexit deadline. villa qatar
Buyers are scrambling to secure properties before the Brexit deadline.
At the end of 2017, Home Hunts noticed a 100 percent spike in British inquiries, many of whom are eager to buy before March 2019. This has been fueled in recent months by the UK and EU negotiators’ December ‘divorce’ declaration, which claimed that anyone living in the EU or owning property there will have their citizen rights preserved. Since then, there has been a flurry of inquiries from Britons interested in purchasing property in France. In one week, we received over 150 inquiries from the United Kingdom, which is unheard of in mid-December.
The dropping value of the pound against the euro has prompted people to take out more flexible mortgages.
Due to the pound’s loss of value versus the Euro since the Brexit referendum, British interest fluctuated throughout 2017. However, after sitting on the fence for a long, many Britons have concluded that ‘enough is enough’ and, rather than waiting, have sought out methods to make things work. British clients have taken ‘back-to-back’ mortgages, where they deposit their money in sterling with a bank, as one of the most popular choices. They then borrow the equivalent amount in Euros to purchase their home, and they can choose to pay off the mortgage as the pound appreciates in value, at their leisure. Because interest rates are now low, borrowing money for clients of all nationalities makes sense.
Macron’s tax measures will help the stock market.
President Macron has proposed big tax adjustments that would take effect in January 2018 and will strengthen the French real estate market. Macron is committed to lowering some property taxes and simplifying France’s economic system. These include the elimination of the annual habitation tax, which is paid by the vast majority of households (80%), a significant reduction in the wealth tax paid each year, and the simplification of renting contracts. Many of Home Hunt’s rich clients have previously dismissed the idea of relocating to France due to the prospect of paying an annual wealth tax on their global holdings, so these developments are welcome. Retirees, entrepreneurs, business owners, and anyone wishing to relocate are all affected.
The current wave of confidence in France will continue to support the property market’s growth, and we anticipate a very busy year in 2018. This is already proving to be the case, with many visits already scheduled for January and February, including numerous repeat visits.
Brits are discovering new places to visit.
According to Home Hunts, the French Riviera, Provence, Languedoc Roussillon (particularly the areas between Montpellier and Carcassonne, and the coastline), the Dordogne, the Bordeaux area, and some other rural locations in south west France will continue to be the most popular areas for British buyers in 2018.
Aside from that, Paris is always a popular choice for individuals seeking for a ‘pied-a-terre,’ and it has recently become more appealing to people working in finance who are considering relocating. The similar tendency is evident in Geneva, which has influenced demand for houses in the French Alps, particularly in the areas surrounding Lake Geneva and nearby ski destinations like Morzine, Les Gets, and Chamonix.
Prices in popular regions will continue to rise.
Over the last two to three years, the French housing market has been steadily improving. The domestic market has become much more vibrant in several areas, while foreign investment has increased significantly, notably after the election of Emmanuel Macron.
Due to the high level of demand from both local and international buyers, Home Hunts expects prices to grow by 8–10% in major cities such as Paris and Bordeaux (particularly US, UK and mainland Europeans). The French Riviera will continue to attract international purchasers (we predict a 6–7 percent growth this year), as will Provence and Languedoc Roussillon (about 5% growth), with some places like Montpellier expecting slightly higher.
Because of the greater value for money, the South West of France is also seeing an increase in demand (particularly in the Dordogne, Lot et Garonne, and Gascony). Prices have remained relatively consistent in this area for the previous 2–3 years, and Home Hunts anticipates a minor increase in 2018, as foreign buyers seeking a reasonably priced chateau or rural property with land are drawn to this region. This year has seen a significant change in the French Alps, owing mostly to two markets: overseas buyers wishing to invest in vacation houses and those wishing to relocate (either because of work relocation to Geneva or retirement to places such as Annecy).