You may have read some of the recent press articles about collapsing property values in France which have compelled me to explain further what we have been witnessing here in the higher end of the property market in the South West of France.
Since the beginning of the financial crises we have seen strong rebounds in the Bordeaux City market and in the Bordeaux Vineyard sector with both local and international buyers driving the activity. In the country residential sector prices have recovered a little but market activity remains subdued and enquiry levels remain soft relative to 2011 and 2012.
Being strategically focussed on property above Euro 700,000 we have found our clients have remained active through this period of economic and political uncertainty. A common theme evident is that high net worth individuals are comfortable moving from other asset classes into real estate in France. With low yields in bond and cash markets and volatility in other asset classes our investors seem comfortable with the relative stability of ‘bricks and mortar’. Residential property prices in the South West of France are traditionally much less volatile than other real estate markets mainly due to the fact that it has been historically difficult for investors to access high levels of financing and this lack of gearing reduces debt servicing stress during adverse market conditions.
Looking ahead …. Luxury French property in 2013 and beyond
From a global perspective the economic outlook remains uncertain and the Eurozone continues to experience difficulties. In France we also have a flat economic outlook combined with uncertainty on future taxation policy.
However there are several factors which we at Maxwell-Baynes believe support the decision to buy real estate in the south west of France and in particular Chateaux for sale in Dordogne.
- We still believe that real estate offers a more stable environment than other asset classes and with continuing efforts by major Central Banks to stimulate growth and keep interest rates low, this backdrop should be supportive for property.
- Early evidence suggests that Asian interest is spreading from Vineyards to Chateaux (without vines).
- The region is well served by TGV and rail networks, which together with the various regional and international airports ensure that the area is highly accessible.
- The quality of life experience in this part of France remains high.
- Ownership and title is clean, reliable and straightforward.
So, is it a good time to buy property in France? Maxwell-Baynes are French real estate professionals and we have seen our share of market cycles. There are a few things that remain consistent but the intrinsic value of French chateaux for sale is outstanding and in our view and remains very attractive in comparison with other luxury locations around the world. The extraordinary beauty of the Dordogne, Charente and Gironde regions coupled with the climate we enjoy here remain unchanged. If there is any credibility to the concept of “market cycles” then the answer to the question from this local professional is ‘Yes’!