Market Outlook
If new year enquiries are anything to go by, then the French property market will continue the strong performance of last year into 2018.
January is usually a good bellwether for the year, being one of the most important months of the year for new enquiry volumes.
Click through to read more from our finance director, Tim Willams, on other factors that will support a positive outlook....
Other factors which support a positive outlook for 2018 include:
Stable exchange rate.The post-Brexit referendum exchange rate between the Pound and the Euro has stabilised around 1.13 to 1.15 after the fluctuations of a few years back.
Improving Brexit clarity. From citizens’ rights to a reduction in the rhetoric of politicians surrounding Phase 1 of the “divorce negotiations”, a consensus seems to be emerging of a “sensible” Brexit final outcome.
President Macron.The new President de la République seems to be adopting a pragmatic approach both to relations with the UK and to the French economy. The political malaise under President Hollande is over and there is a sense in France that the country is “on the move” once again.
French economy. The French economy grew by around 1.9% in 2017 and is forecast to continue at that rate or better in 2018. The budget deficit was the lowest for 10 years. Unemployment remains painfully high, but with economic, tax and employment reforms coming in under President Macron, the broad picture is looking brighter.
French housing market. After a difficult 4 year period to 2016, the housing market picked up strongly in 2017 and is heading in the same direction now. Sales of properties increased nationally to over 950,000, with prices increasing on average by 3.9%. Sellers are less willing to accept “silly” offers and many more properties are selling at asking price. Also, French buyers have become much more active, benefitting from continued low rates for mortgages.
