Print this pageDate Added: 10-10-2008
At a time when everybody is tightening their belt, it is good to know that there are still some very positive points coming out of the French property market, as well as opportunities not to be missed.
According to experts in Paris and Ile de France, the slowdown in the property market is a normal readjustment after a 50% increase in property prices from 1990 to 2008. Over the past few weeks the volume of sales has seen a drop of 15 to 20%, but if the French banks carry on with their current mortgage policies, it is believed we should not see any major movement in prices for 2008. It is worth remembering that the French banks are quite conservative with their lending policies.
Economists agree that the property market is presently being affected by a drop in the volume of sales, as well as a 10% decrease in new mortgages. The prices are, however, holding and are even increasing in some parts of France. It is felt that a price drop should be limited as long as the interest rates stop increasing and the French economy does not deteriorate.
All the experts seem to agree on one thing, location is key Paris, the French Riviera and top ski resorts can be considered as safe value.
New Build Market
Developers have noticed a change in the market for a year now, in anticipating a new demand they have reduced the number of units to be released. Today in France, there are a total of 3,250 unsold units - this represent only 3.4% of the total built.
The price per m2 has increased by an average of 3.7% in the last 12 months; this is surprisingly low when you consider the increase in the price of petrol, raw building materials and a higher demand from the government on environmental standards.
Prices have not dropped in new builds, but some developers eager to sell off their excess stock before the end of the financial year are offering incentives, such as including a fitted kitchen or the notary fees. It is also good to know that developers have established prices for their new developments on todays current market price, so property prices are not overpriced, as we have sometimes seen in the past.
For the high-end part of the market (in France the high-end starts at 500K +), there is no slow down, developers who specialize in this market have seen an 8% increase in their sales since last year. (Extract from Le Figaro 27th September 2008)
Mortgages
We have just been informed by our partner banks, that we can now offer non residents a mortgage of up to 100% (loan to value) for capital and interest repayment loans and up 90% (ltv) for interest only mortgages. These are applicable to classic purchases, which is a great move forward for investors, allowing them to hold onto their cash and not pay the usual 20% upfront.
New Developments
Chamonix Mont-Blanc international winter resort in Haute-Savoie is where we have made our selection for new ski developments. Chamonix is a lively and beautiful Alpin town located less than one hour from the airport of Geneva. Chamonix is set at the foot of Mont Blanc, Europe's highest mountain at 16,000 feet, and has been a major alpine centre since the 19th century. Chamonix is a fascinating traditional ski resort with a bustling atmosphere. The skiing is divided into 5 main areas comprising of 76 runs, where you can indulge in some of the best off-piste skiing in Europe. It is also a perfect dual season resort as summertime is also very lively. We are releasing 2 new residences in the centre of Chamonix plus some new chalets; please contact us for more information.
The French Riviera is always a popular location for investors and lifestyle purchasers alike, seafront properties in particular are a safe choice in this current climate. If you are looking for a seaside resort with activities all year round, Cannes is the obvious choice. We will be releasing a small development only 10 minutes walk from the Suquet and Cannes Port later on this month. The apartments are around 100m2 with sea views, there are only 4 available so please register your interest now.
Juans les Pins is another good seafront location. Domaine Juan Flore, which we have already presented to you is well worth considering again as the prices have been readjusted for the last phase. Prices start at 290 000 for a 1 bed apartment and 345 000 for 2 bed apartment. There is direct access to the beach, private gardens and a large swimming pool. Villa Palma is also a seafront development in this area, but on a much smaller scale, as there are only 28 apartments with prices starting at 230 000 for a 2 bedroom.
We have a new residence just released facing the sea in Cap d'Ail, a top seafront location with the addition of its proximity to Monaco. Prices start at 150 000 for a studio, 275 000 for a 1 bedroom and 345 000 for a 2 bedroom.
We get a lot of requests for properties in Nice, which offers a city lifestyle and is close to the airport - always an important factor from an investment point of view. We have a small development with swimming pool situated in the heights of Nice offering south/west facing apartments with a superb unobstructed sea view up to Cap d'Antibes. The apartments are stylish and refined, all with large terraces. Prices start at 250 000 for a 1 bedroom.
Golf Properties
Golf Properties make a good investment due to the fact they offer a good resale value plus they are greatly in demand with many of our clients. We have selected 2 developments for you to consider, one in the Provence area and one closer to the sea. Pont Royal is an established private golf estate designed by S.Ballesteros. It is located halfway between Avignon and Aix en Provence, the second phase of the Residence Colline du Golf is just being released, prices start at 146 000 for a 1 bed apartment and 198 000 for a 2 bed village house.
Roquebrune sur Argent offers a different set up, next to an existing golf course (being upgraded to a 27 hole course), only 10 minutes from the beach (Issambres) on a private estate with swimming pool. Apartments and 3/4 bedroom villas are available. Prices start at 212 000 for an apartment and 330 000 for a villa.
Leasebacks
We have a fantastic leaseback currently on our books, it is purely an investment property located in the very fashionable Marais district, close to Place des Vosges and Place de la Bastille in Paris. The residence is up and running so purchasers will receive an immediate return on their investment. This leaseback offers great value for money due to its central location in Paris, plus you dont have to advance the VAT unlike most leasebacks and the purchase fees can be added to your mortgage. Mortgages up to 90% are available. Prices start at 232 500, the lease runs for 9 years lease with 4% net return, no services charges to pay.
Resale
For our resale selection we have chosen 3 stylish Cannes apartments recently refurbished and a chic house situated in the charming, medieval village of Haut de Cagnes. We are delighted to offer 2 apartments with the very desirable location of Cannes' Croisette. The first is a 2 bedroom apartment with a large terrace overlooking the Cannes Palais Congrιs, making it an ideal investment as it would be ideal for renting out during Cannes' many festivals. Decor is contemporary with impressive finishes and the views are stunning. Price 1 642 690. Cave, furniture/fittings and garage included.
The second Croisette apartment is 49m2 with 2 bedrooms and a seafront terrace/Croisette terrace also. Located further east, this apartment has a lot of character and would be a perfect investment or holiday property. Opposite the beach, situated in a charming building with lovely views, this property is completely furnished and is on the market for 953 820.
The final Cannes property is set in Californie, the leafy residential area located behind and above the centre adding to its stunning sea views. The apartment lies in an attractive residence with conciege and swimming pool. It is 120m2 with 3 bedrooms, large terrace, cave and parking. Access to the centre is simple with a convenient shuttle bus from the residence. Price is 1 695 680.
In a very different location, bursting with history and charm, the village house lies in Haut de Cagnes. Situated on 180m2 of land with 230m2 of living space, this property has 4 bedrooms including bedrooms with ensuite bathrooms, fireplaces and terraces plus a guest bedroom with private access. It is a very sunny property with stunning views of the sea and Cap d'Antibes. There is a terrace of 80m2 with summer kitchen opening onto the garden and the house is completely renovated. Price is 1 400 000.
For further information please visit www.petravillas.com
or contact us Tel: +44 (0) 1635 248 706 Mob: 07802 748 123
Email: info@petravillas.com
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