If you are contemplating selling a house in France then there is much to be excited about. The French economy is more stable than ever, and in a very healthy condition. There is a strong interest in France properties for sale from foreign investors for this reason – there is a feeling that any investment made in France is a perfectly safe investment that grows in value over a period of time.
2022 has already been an excellent year for the real estate market in France. The extremely positive market sentiments about France are backed by actual numbers. There has been in increase in investment in commercial real estate in France by 10%, 4.3 billion Euros so far, compared to 4 billion Euros same time last year.
Nicolas Verdillon, executive director of capital markets at CBRE in Paris says, “Investments have been increasing steadily since 2009 and last year reached a total of €24.1 billion. In France the upturn has started later than in the UK and is happening at a slower pace than Italy, but it is a steady and sustainable recovery. It is easy to predict that Asian investments will be much higher by the end of this year, as we are already seeing the signs.”
He adds, “There is real pressure to invest and also real competition, as ME investors are also more present as a share of the market, while North Americans who have focused on the added value side are now moving into core investments. The segmentation below €50 million deals is shrinking, which makes us feel much more comfortable with the market this year. It is more homogeneous and more balanced.”
Foreign investors have certainly noted the strength of the property market in France and have been gradually increasing their presence in the country. No longer do the domestic investors form the bulk of the buyers for homes to sell in France. In fact, the share of domestic investors in the French property market has fallen below 50 percent for the first time ever, and it is only 44.3% in 2021 – the rest going to foreign buyers of properties in France.
So who is buying France apartments for sale? Americans and Canadians are very much dominant, buying 18.4% of the houses to sell in France in year. Middle Eastern buyers are also very interested in France – having snapped up 11.3% of the France homes to sell. The Asian investors – mainly those from China – form the third largest chunk, with a share of 5.4%.
With the confidence back in the US economy, rich Americans have been buying assets all over the world, aided by the strength of the US Dollar against other currencies, especially the Euro. They now account for an amazing 10 percent of all properties sold in France this year.
What has caused an increase in interest from non-European buyers is that the French government has reduced the capital gains tax on properties in France sold by non-EU nationals from 33 percent to just 19 percent. Plus, the social tax which amounted to 15 percent has been completely abolished. These steps have certainly boosted the sentiments in the property market in France and made foreign investors more enthusiastic about the country.
Even Europeans are buying France houses for sale as well. Germans account for a share of 7.4% in the French property market. Only the British interest has decline a bit and remains steady at 4%. It also looks likely that Asian investors might overtake those from the US and the Middle East in the second half of 2021.
As Francois Rispe, managing director at Prologis concludes, “France is always stronger in volumes and size of transactions than Spain or Italy and investors’ interest is increasing. The economy is finally turning and we can expect real positive change in 2022.” Sell Property in France to Overseas Buyers.