Property price report

An April 2009 report issued by FNAIM (Federation Nationale de l'Immobilier), the largest estate agency association in France, comments on the French property market and the impact of global economic conditions on prices.

France

Property prices across France fell during the first quarter of 2009; however the professional opinion is that this adjustment reflects a correction rather than a collapse in French property values. Unlike other markets such as the UK and the US, the French have been more circumspect in their property investments and much of the reason behind the fall in property values is a sluggish market due to a lack of consumer confidence in long-term investments. FNAIM also comments that market conditions for buyers have not been this advantageous since 2003; attributable to a number of factors such as low interest rates, low inflation and negotiable property prices.

Overall property prices across France have decreased by -5.7% over the past 12 months and there is a -9.8% decline between the first quarter of 2008 and the first quarter of 2009. Regional fluctuations show some differences, with declines of -7.7% and -6.1% on the east and west side of the country, -6.4% in the south-west, -8.8% in the centre and Alps, -11.2% in Paris and -13.3% in the south-east of the country.

A survey conducted amongst 260 FNAIM agencies across France recorded a -25% decrease in the number of transactions taking place, however 61% of the agencies recorded an increase in the number of interested buyers year-on-year. Just over half their vendors were prepared to negotiate on the asking price of the property, by an average of -14%. Interestingly 23% of candidates are looking for a second home, showing that France has maintained her popularity amongst holiday makers and property investors.

Haute-Savoie

In the Haute-Savoie region we have seen property prices negotiated by an average of 5-10% during the first quarter of 2009, with some resort centre properties still selling for the full asking price and vendors in the outer-lying areas accepting lower offers. Advertised sale prices have not yet reduced by any great margin. As less new build developments (-17.5%) are launched across the country and the ski resorts of the Alps, rental values have started to increase and in the central and alpine regions rental values are up 3.9% for apartments and 3.7% for houses. The squeeze on supply has increased demand for rental properties and this is welcome news for property investors.

The alpine property market is starting to show signs of levelling out, with a greater number of buyers registering interest in property in the region. Whilst some buyers are adopting a "wait and see" approach, others are successfully negotiating prices and mortgage deals that enable them to invest in a property that would have been unaffordable two years ago. With an excellent ski season behind us where occupancy rates reached 100% in the peak weeks and an average of 70-90% across the rest of the season, it's a fantastic time to take the plunge before the green shoots escalate.

To find out more about property for sale in the French Alps, please contact us.

Samoens bargains

Spring is in the air in the valleys of the French Alps, the sun is shining and the first of the springtime flowers are bursting out in a riot of colour. Up in the mountains it's a very different story and the deep snow is still providing excellent coverage over the ski pistes.

It's a fabulous time of year to hit the slopes; there's something so gratifyingly indulgent about enjoying a hearty alpine lunch on a chalet terrace in the blazing sunshine - drinking in those never-ending mountain views and whiling away the time relaxing in a deckchair or burning it all off on-piste - especially if the rest of the world is at work!

This week I was in the Grand Massif ski domain visiting property with some clients and they were totally bowled over by the area, the variety of activities available for holiday makers and the value for money that this part of the French Alps currently offers. There are some excellent springtime bargains out there and they certainly won't be around forever.

Already this month we have seen a huge increase in the number of contacts from prospective buyers and it's shaping up to be an excellent second quarter. Our contacts across the region are reporting a similar story, so it's a case of get in there quick, before the bargains are snapped up by other savvy buyers. As mortgage rates are at the lowest we've seen for a good while (our French mortgage contacts are offering rates from as little as 3.75% variable) you can even off-set your sterling-euro exposure for a few months - and perhaps clear the loan without penalty when the exchange rate strengthens. It's an excellent time to buy property in the French Alps, so why not strike whilst the raclette pan is hot?

To see a selection of the fantastic property we have for sale in Samoens in the Grand Massif, take a look at the following reference numbers on Ascendant's Buy Property page:

Reference 1327718 - 179,950 euros
In Samoens centre, two double bedrooms, large balcony, parking and ski locker.

Reference 1407041 - 220,000 euros
Samoens centre, newly built, 2 bedrooms, terrace, fully furnished and equipped, underground parking, cellar and ski locker, rental returns of minimum 5% p.a. and reduced notaires fees.

Reference 1254105 - 227,900 euros
Central location, two bedrooms, sunny terrace, ski locker, private garage, immaculate condition.

Reference 1414530 - 249,000 euros
Samoens centre, in a charming character building, 2 double bedrooms, 2 bathrooms, sold fully furnished and equipped.

If you'd like to arrange a viewing of the above property, please contact the Ascendant team.

For more information on Samoens and the Grand Massif area, please visit our Area Guide.