The real estate market in France is on the rise, thanks in part to optimism and increased certainty following Emmanuel Macron's presidential victory earlier this year and his pro-business stance, according to a Knight Frank report released Friday.
Across the country, 30,909 new homes sold in the first quarter of 2017, an increase of 8% compared with the same period in 2016 and up 29% compared with 2015. But signs of improvement were noticed prior to Mr. Macron’s May 7 win; online searches for French properties on Knight Frank’s website increased by 97% in April compared with March 2017, the report said.
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Both domestic and international buyers are being wooed in the country. The former saw positive economic indicators as the push they needed to move forward; and the latter being swayed by Macron’s desire to lure international talent and restructure the economy.
Though both no doubt enjoy France’s historically low interest rates, low purchase costs and assured rental return prospects—France is the most visited country in the world, welcoming a reported 82 million tourists each year according to the report.
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The luxury market, too, is enjoying the same boon, the €2 million to €4 million (US$2.38 million to US$4.77 million) price bracket is the most active market, according to the report, and across France, Knight Frank has completed more €8 million-and-up (US$9.55 million) sales in the first half of 2017 than throughout the whole of 2016. Unsurprisingly, affluent regions like Côte d’Azur, Provence and the Alps are key destinations for luxury buyers.
Paris has seen stand-out activity in 2017. In the first quarter, 10,380 properties changed hands according to the report, up 66% compared with the same period in 2016, when 6,240 sales were completed.