French property prices and sales volumes fall in 2012

Statistics released by the French National Real Estate Federation (FNAIM) show that real estate sales in France fell by 25% last year. Investors and home-seekers looking to own property in France would do well to seize this opportunity; the slump in prices and sales is expected to continue well into 2013, according to French Property News. Brittany and Normandy have had the slowest markets; since March last year, total property sales in these areas have dropped 2 percent on average compared to the previous twelve-month period. Other areas, however, have seen an increase in prices. Different institutions have predicted varying drops in prices for property in French provinces in 2013; the FNAIM predicts a drop of 2%, the Institut de l'Epargne Immobilière et Foncière (IEIF) predicts a drop of 3%, and Standard and Poor's predicts a drop of 5%. Prices for property in inner Paris, on the other hand, are expected to stabilize. Anyone who is looking for a good place to invest in real estate in Europe would do well to invest in French real estate. Buyers can avail of very competitive interest rates; mortgage rates at the moment start at 2.3%. Loan-to-value ratios are relatively high, and buyers can expect to be able to borrow up to 70% of property value for interest-only mortgages. As for repayment mortgages, buyers can expect to borrow up to 85%. Despite the current Eurozone debt crisis, the French property market shows relative stability, and may be one of the best bets for real estate buyers in Europe. More and more UK buyers are crossing the channel to look for a second home. Purchasing French properties offers considerable advantages, such as being easily accessible from the UK, profitable rental possibilities, and excellent climate. With the recent slump in their real estate sales, the dropping prices are more reason than ever for buyers to purchase property in France. At Choice Loans we can help you get a mortgage in France. If you would like to speak with a (British ex-Pat) French mortgage specialist about finance options for buying in France then either call us on 0845 1260350 or complete our Overseas mortgage enquiry form here and we will contact you.