2010 MARKET REVIEW
2010 has proved to be a year of consolidation in the rural property market in the South West of France. There has been an oversupply of property across all but the entry price brackets and there has been value to be found for purchasers. Volumes of sales have been modest but fairly steady through most of the year. Autumn sales proved to be lighter than projected, perhaps due to the weak level of Stirling experienced during this period. It seems as if some English buyers have been restricted by their inablility to sell their properties in the UK
France repeatedly tops the reviews of the best places to live but this year the South West has come out top in a poll by the Telegraph cited for the relaxed lifestyle, good schools, easy access, and its diverse and established property market. The South west is also the favourite region of the French due to the quality of life to be found in the area.
We expect the market to remain relatively calm for the first half of 2011 with prices remaining relatively stable. The two elements that are likely to impact on volumes are the Sterling exchange rate and the liquidity of the property market in the UK. There are still numerous bargains available with some 40% of property having been reduced in price since coming to the market.
2009 WRAP UP
A little more than a year ago the crash in the financial markets had a sudden and profound impact on the property markets across most of the world signaling the end of an era. We were not left unscathed in our quiet corner of France and it has been a challenging year in the market.
The panic had begun to ease by the spring and a new mood began to take hold. It was still tinged with gloom but felt less calamitous and more considered. The despondency manifested itself in tumbling prices and increased supply of property on the market which in turn started to make property more affordable to those sectors of the market less affected by the financial turbulence.
By then the "fonctionaires" had began to snap up a few of the bargains on the market and we began to see more French clients coming down from the north of France, looking for a better climate and a cheaper, more natural way of life. A stream of Belgian and the Scandinavian clients began to trickle through and more recently a fresh wave of British buyers. Most have had to trim their budgets dramatically but with the current mood, we have been able to negotiate some tremendous deals for purchasers which have tended to compensate for the weakness in Sterling.
As a result we enjoyed a marked increase in the volume of transactions during the second and third quarters of 2009. Most of the demand has been in the lower end of the market but as the year has evolved the value of transactions has steadily been creeping up.
In October, for the first time in over two years we are seeing our level of stock reducing as sales outstrip fresh supply. Prices are still weak and there are many good opportunities on the market at the moment. It is not all about price however as there are several exceptional properties available which are difficult to source when times are more buoyant.
This carefully restored Maison de Maitre has recently come onto the market offering well proportioned rooms, fine features, and a fully restored outbuilding comfortable and spacious guest accommodation.
Price 835 000 € in the southern Gers with 9 bedrooms and 6 bathrooms.
Many clients are looking at Euro based mortgages which are offering historically low interest rates. This also presents purchasers with the ability to redeem their mortgage if and when the pound makes any notable gains.
There is also renewed interest in the "buy to let" offers available from the sound developers. We currently have availability across a range of new build developments managed by "Pierre and Vacances", the market leader in France. They offer guaranteed rental returns, TVA refunds, low deposits, competitive financing whilst all of the property management and all related costs are taken care of. Owners choose the level of usage they require each year and leave the rentals to the developer. After holding the units for fifteen years there are no capital gains to be paid.
"The view from the development in Cannes La Francia."
Having sold the first stage of development the final stage of MGM apartments have just been released in Avoriaz and have been attracting keen interest. The apartments in this vehicle free resort will overlook the Morzine valley and will have access to an exclusive spa.
Going into the New Year we certainly are remaining cautious but the signs are fairly positive. Traffic on our website has more than doubled in recent months and enquiries are at record levels. If the level of enquiries is any indication of genuine demand then the levels of value and the range of choice which is currently available could well dissipate through the spring.
Our advice? Heed the words of Horace who on returning to Italy and finding his family home and worldly possessions confiscated, turned to poetry. In his early works he immortalized the phrase"Carpe Diem". Seize the day, live your dreams to their full!
2009 SECOND QUARTER
A marked increase in the volume of transactions has marked the second quarter of 2009. Most of the demand has been in the lower end of the market but as the quarter has evolved the value of transactions has been creeping up. Although sentiment with sellers remains fairly gloomy some of the best value on offer is being stripped out of the marketplace.
Our observations are based on the South West where we are finding numerous French buyers moving down from the North of France motivated by the climate and the quality of life to be found in the area.
There has also been an increase in the levels of English purchasers, many who have managed to sell properties in the UK. We are finding that this sector of the market have trimmed budgets dramatically to compensate for the weak sterling and concessions that they have had to make when selling in the UK.
There are also increased levels of demand from other European countries, notably Switzerland and Belgium with purchasers attracted by the levels of value on offer. There is also some demand from the Scandanavian region.
Overall the market is looking far healthier than at the beginning of the year and it would appear that property values have stabilised for now.
2009 FIRST QUARTER
The first quarter of 2009 has been marked by dramatically lower levels of demand from international clientelle matched by sharply lower levels of transactions with local purchasers. This has had a dramatic effect on sentiment and prices have been dropping accordingly. Supply of property remains plentiful and pressured sellers are being forced to drop their expectations by as much as 40%.