The news from INSEE, the French statistics office was that 2018 set a new record year for property sales in France, with 970000 sales excluding sales of new homes, so slightly above the previous record of 2018. The same factors are at work, interest rates for home loans at record lows fueling demand, helping younger buyers buy their first home.
High demand combined with fewer properties available have resulted in the highest price increases in Paris and dynamic cities like Lyons, Bordeaux and Toulouse - prices increases were 5-10% per year in those cities over the last 2 years. For the rest of France, after years of stable or declining prices, there has been a 3% per year increase over the last 2 years.
And in the South of France, Provence Alpes cote d'Azur region, for the very first time in years, house prices have risen above 2% in 2018, as the abundant stock of houses on the market are beginning to decline.
What are the Fundamentals for the property market in the South of France ?
In Provence and the French Riviera, the +10 million holidaymakers who come to the region every year are all potential home buyers when they reach retirement or save enough to buy a second home. So the demographic fundamentals look excellent long term.
In the short term scare stories in the media on Brexit are holding back some UK buyers, as are stories on gilets jaunes, but there is not much apetite in 98% population for another French revolution....
And when Macron's announcements on tax cuts get implemented, confidence in the economy and the property market should continue to improve.
So if you were waiting to decide when to buy, don't miss out in 2019 on the exceptionally low interest rates and the start of the property market recovery !