FRANCE REAL ESTATE MARKET – FIRST QUARTER 2007 – A SELLER’S MARKET

French Real Estate market in the first quarter of 2007 is an out-and-out seller’s market. Real estate in France has always been a stable business and has seen a lot of investors from Europe and beyond. The country’s irresistible charm and splendid weather attracts a lot of visitors to buy property in France.

A buyer’s market is a market which favours the buyer. The prices will generally be low and cheap. A seller’s market is one in which the seller holds dominion. Generally, when the rates are fixed and there is a high demand for property, the market is called a seller’s market.

In the first quarter of the year 2007, real estate in France was in the hands of sellers. This was mainly because property in France was in great demand. This vertical movement in real estate in France had started even in 2006. By the end of 2006, the housing stocks started rising steadily. The first quarter, the year 2007 has seen good increase in the prices for property south of France. Due to its proximity to sea and the warm Mediterranean climate, property south of France is in huge demand. It is estimated that the price of an ordinary France villa for sale is rising at an average of 6%. The trendy first quarter has seen a tremendous price hike even in the realm of unoccupied old apartments. The average price stood around 11.3% p.a.

On seeing such a great price hike in real estate in France, one can assess the demand for property in France during Q1. The steady French real estate market gave several options for buyers – including investing in Provence real estate and to buy house in Cote d’Azur. When buyers were more eager to invest in French real estate, then sellers had their right time. During Q1/2007, there was a steady increase in the square meter of land, which on an average read as 8.7%p.a. These stats reveal that during Q1 real estate in France was a vibrant industry where property was in great demand.

Real Estate in France has become a place where buyers queue up to invest. It is a seller’s market where sellers fix the rate for their property. Though the sales volume of the property south of France has seen a decrease, there is a constant increase in pricing. This is because of the Europeans, especially the British, who see France as an ideal getaway. Coming from a cold clime, the British prefer a warmer and sunnier climate than their own. So when they decide to buy property in France, they choose property in South of France.

Property South of France sees continuous and steady increase in price rates as it is one of the most favoured locations. The sunshine lands of South France with their beautiful French villas make the place one of the most favoured destinations for visitors. The ‘France villa for sale’ tag was hard to see during Q1 as villas were in great demand and buyers were queuing up to buy them. To conclude, the sellers have held sway over real estate in France during the first quarter of 2007.

FRENCH PROPERTY TAX

Understanding French Property Tax is a must for all property holders in France. Especially, it is very essential to be clear about the taxes levied and how they can be managed. What is a property tax or to be general, a tax? Taxes are levied for owning property in France. After buying a property in France, it is a must for a resident or a non-resident to pay taxes for their French property.

South of France Real Estate has varied opportunities for the buyers from both inland and foreign lands. Also the mortgage in France helps investors in buying property in France. One can avail certain privileges on being a resident or non-resident. Details about it are discussed later in the article. Now coming to the types of taxes, there are two local taxes payable on a French property termed as taxe foncière and taxe d’habitation. The first one is known as property tax for owners and the second one is known as occupancy tax for occupiers.

The first type of tax is charged on the value of the property owned, comfort level, type of building and surface area. The second type is one in which the owner of the property keeps it as holiday residence and pays the occupancy tax based on the rental value of the property as defined by the local authorities. If the occupier of the French property does not pay the tax, then the owner of the property is liable to pay it.

To get a clear idea on types of taxes, one has to know about the authorities who decide the tax rates in France. The local authorities of a region and collectivité territoriale determine the rates and they may vary from region to region. So, it is advisable to look into the tax slabs and invest in property. Taxe foncière when compared to taxe d’habitation will be high and may be twice the amount of the occupancy tax. Generally, the 1st of every January is the due date for paying the French property tax. The property owner or the occupant will receive the bills in the months of August or September and the taxes have to be paid on or before the stipulated period. For the occupants or for those who come under taxe d’habitation, the French government gives an option to pay tax in monthly installments.

When buying a property in France it is always recommended to check the price rate of the region, tax exemptions and privileges given by the local authorities. When paying the tax bills, if one feels that the tax assessment is high, local Mairie are there to help in the tax assessment process.

Provence real estate has many offers for its both foreign and local investors. The price rate may increases during holidays, as South France is forever a holiday spot! Mortgage in France is also flexible for both residents and non-residents. On fulfilling these requirements one can own property in France.