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French Property

Although the full figures for house price inflation in France for 2006 have not been released yet. Our guess is that for the whole year, prices will not show any significant increases - in fact, they could be flat in many regions. Our sales at 1st-for-French-Property.co.uk for 2006 are certainly indicating little or no price rises. We understand some regions, such as the popular Brit destination of Brittany, will show a small decrease. It is said that it is the foreign buyers that are keeping the market going in Brittany! Other areas are showing some increases: we have - for example - noticed increases in the Bordeaux, Archachon and Gironde triangle. HSo how does this bode for 2007?

2007 French Property Prices

Well this could be a difficult year to guess! There are many competing factors - so do not expect a conclusive answer. Factors that will increase pressure on prices:

- ever increasing numbers of baby boomers wanting to buy a property for retirement, investment or re-location;

- an improving French economy (so there could be internal pressures from the French population returning to the property market).

- signs that buyers are retreating from Bulgaria, Turkey, and other new EU member countries and looking back to the traditional favourite countries such as France, Spain, Italy and Portugal.

- euro currency weak against Sterling (of course, this could change!)

Negative factors:

- RyanAir falling out with the French Government over labour laws - just hot air we hope but any retreat from French destinations would have an impact on the local markets around the airports.

- Green taxes increasing air-fares: large increases could affect prices in the South of France.

- French Immigrant unrest could produce more riots and negative publicity even if the riots are very localised.

Other factors: what effect will the French elections have in 2007? It is almost certain that the “old guard” will be replaced by a younger generation - possibly with a female President! What effect will the new politicians have on the property market? Who knows but taxes will probably have to rise and property could fall into the radar! The National Front were nearly voted in last time due to apathy among French voters in the first round. If they got in, then we could see extra taxes on second homes but that is highly unlikely.

So there are lots of conflicting factors - so the result is….. Well, our guess is small to moderate increases in prices nationwide with regional hotspots but do not hold us to these predictions! In the longer term, we believe French house prices will rise significantly - particularly in coastal areas.

Good house-hunting for 2007 and be prepared to negotiate as there are many sellers looking for early sales in 2007! There will be bargains around in the Winter months. We already have over 200 price reductions on our website: French Property Bargains

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French Property, Property Market, Feature, France

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