Article examining how the mass influx of Foreign buyers in France is pushing up prices and pricing locals out of the market.
In certain areas of France which have typically been relatively cheap places to buy property are rapidly becoming too expensive for local French to make a purchase. Les Landes for instance in the region of Aquitaine has seen steep price increases over the last few years as foreign buyers have relocated here or bought their holiday home. Price increases of 20% a year on the value of property have not been uncommon in this department and many other regions of France have seen a similar trend. The French Riviera has seen the price of certain villas nearly quadruple over the last 10 years often owned by wealthy Brits, Scandinavians and Germans, whilst in the Alpine village of Morzine the majority of home owners are now English. One restaurant owner at a popular and high quality restaurant in the area recounted that 75% of his business now comes from the English upon which he depends for the success of his business.Cheap flights, low Euro interest rates and a better quality of life have been the main reasons for the interest in the French property market and expensive house prices in Britain have meant that many have sold up to get much better value for money across the channel.A market that previously was only available to the affluent foreign purchaser is now, due to vastly improved transport links, ease of credit and generally higher wages, also available to those who previously would never have dreamed of the exuberance of owning a weekend getaway in Normandy, for instance. A plumber or electrician by trade 30 years ago could never have afforded to buy in France but now things are different and more and more Foreigners- British especially are taking the plunge and setting down their roots in one of many beautiful and tranquil corners of France.All of this means that house owners in many regions, especially coastal, are seeing their properties soar in value. This is all well and good for current house owners but for local French buyers not as wealthy as the foreigners it is pushing them to buy in the more rural, cheaper areas, possibly further inland. Hence the trend of people moving from the countryside into towns is now being reversed as expensive property prices push them into more rural locations. So in the next few years it is likely that property prices will be increasing even in the areas which are relatively quiet right now where good value property can be bought.
Nick Dowlatshahi is a leading French Property expert and Managing Director of Leapfrog Properties who are an agency specialising in sales of Property in France
