French Property Report - An Overview of Today's Market

Taking into account that 2006 was probably the last peak for French property prices - and if this trend is repeated - a new peak should arrive around 2015. Prices will slowly rise from now until then. Today we are still feeling the after shock of the dramatic collapse of the market. However, there is cause for optimism. There are indications of a slow recovery offering opportunities for astute buyers to get back into the market place on favorable terms with 2010 probably being the bottom of the trough. French property prices are down in some areas of France as much as 25% below 2006 prices and remain extremely attractive. Sterling value to Euro seems to be improving from an all time low of 1.03 in December 2008 to today's 1.15 and all indications are that this will continue to slowly increase. If higher inflation is around the corner, as many forecast, then the property market is still a safe place to invest. With only 16% capital gains tax for residents outside of France, exemption after 15 years, and low local property taxes, a holding in France makes economic sense. Previous trends and current prices strongly suggest that today is the time to take a serious look at some of the Bargain Properties available and to take advantage of some of the highly competitive interest rates available from the banks.