Impact of the global financial crisis on French property purchasing and prices
The world map above shows countries as reported by the BBC (29/10/08) to be most effected by the global economic crisis. While the US, UK and Australia are shown as areas impacted, France isn’t. While not immune, France has not been hit as hard as other places. One of the reasons for this given by French property experts is that French banks have not followed global mortgage trends in recent years and have continued to be conservative in their lending approach. French property investment company, VPS-Global, says also now investors are opting for more stable, long-term investments. Whereas ‘France used to be a lifestyle choice - today we are seeing more and more of our clients choosing France as a pure investment choice, purchasing with no intention for personal occupation’. However, impacting on us is the value of our dollar compared to the euro, dropping from round 60 to 50 cents against the euro. While this makes French property slightly more expensive to purchase, it is compensated by the French market stabilising and tipped to drop a little (plus loan rates just dropped).