France Property Investment News

Resilient French property market 'to enjoy dynamic year'

The French property market will remain "dynamic" in 2007 according to economists.

Figures from the housing ministry released earlier this year suggested there had been a dip in the number of 'housing starts', but analysis suggests the region is poised for a return to form.

With growth in the number of new houses currently running at 5.7 per cent, according to the figures for the fourth quarter of 2006, there is also stable growth in the number of new houses on sale across the English Channel.

Looking ahead, some analysts feel there are strong grounds for optimism, with Global Insight's economist Sonia Pangusion predicting an exciting year for investors.

"With the economic expansion seen in 2006 likely to remain broadly on track in 2007 and with continued favourable credit conditions, the French housing market will remain dynamic in 2007," she concluded.

"Another important support will be the expected relaxation of the zero per cent interest-rate mortgage programme criteria," she added.

The policy in question relates to the development of mortgage programmes designed to allow more people to qualify for mortgages, with around one million households in moderate-income brackets able to buy houses as a result.

The action is expected to shore up the property market domestically, while France remains a popular target for overseas investors.

In Moneycorp's latest Foreign Focus Index France was ranked second in popularity among Britons for overseas property investment.