How Macron is Putting French Property Back on the Map
Uncertainty over Brexit and a weak pound lead to a lull in property investment by UK buyers. Following the French election, the key French property markets of Paris and the Cote d’Azur are seeing a boom in sales since Macron came into power, and the Alps are certain to follow suit.
Property Prices & Transactions
Prices in Paris, the Riviera and the Alps have always come at a premium – and although they might slightly drop in response to political and economic pressures, the general trend is for the value to remain steady as when situations improve there will always be keen buyers in these areas. Since the 2008 financial crisis and uncertainty surrounding the future of the EU, the prices have dropped ever so slightly but the general trend is upwards. The main effect over the past 9 years has been that the number of transactions has declined. Since Macron’s win in May, the property market in these 3 key areas has seen a rise in prices as local and foreign buyers return to the market with growing confidence.
Macron’s overwhelming victory in the presidential election alleviated concerns about a split from the EU which threatened to drive up interest rates which currently remain historically low.
Macron’s huge majority win in the National Assembly elections have given him the power to put into action what he has campaigned for meaning several things for property owners or those looking to buy. These proposals include:
- Promising to exempt 80% of households from Taxe d’Habitation
- Reducing taxes on investment income (such as rental income)
- Energy tax credits of up to 30% for those who choose to use environmentally friendly energy sources such as solar
The lack of confidence that was there pre-Macron has all but disappeared. The days following Macron’s May win saw an unprecedented effect on the property market in France, with prices and transaction numbers increasing. This trend is set to stay as his huge majority in the national assembly elections give him the power to put into action the changes he has proposed, introducing tax reductions and credits for home owners.
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