It’s the Right Moment to Buy Luxury Property in France, Say Shoppers
A recent survey by French luxury property listings site Lux-Residence.com reveals that 64% of its users believe that this is the time to make an investment in luxury French real estate. Only 1 in 2 felt that same a year ago.
After the French property market’s impressive performance in 2016 and an equally strong start to 2017, sentiment is positive among professionals and market players. This is no less true of more niche pockets of the market, like luxury property. Users of French luxury property listings siteLux-Residence.com responded to questions regarding France’s attractiveness as an investment, showing a significantly increased optimism compared with last year. The survey aimed to gauge the sentiment of buyers planning a purchase within two years of the survey period (December 2016 to January 2017).
In the same survey taken at the end of 2015, just over half (51%) said that it was a good time to buy luxury property in France. The recent figure has jumped 13%, with 64% responding positively. This positive outlook is down to more than just low rates: when asked if these were a motivation for buying a property only 40% said yes, compared to 51% in the non-luxury market.
The biggest uptick has been the perception of whether prices in the luxury property sphere are justified. Only 24% believed they were when asked at the beginning of 2016, whereas now half say they are. And there is a five-fold increase in the percentage of those who believe that prices will rise significantly this year: 5% thought so in 2016, 25% this time around.
The most cited concerns for luxury property buyers is the value of the euro and the ever-changing landscape of French fiscal rules. Interest rates and the general political climate did not rank high on buyers’ list of concerns. The terrorist attacks of 2015 – so important in the minds of international buyers – are also less important to them than the euro and fiscality.
Despite the improvement in the last year, half of the respondents say that the market is still less attractive than it was in 2011. And while politics is less significant to luxury property, one-third of potential buyers have changed their activity in anticipation of the upcoming elections: 11% have sped up their transaction process, while 21% are waiting until after the elections to move forward. The general health of the luxury property market is said to be in better shape than ever.
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