Strong demand for new build homes in France

Wednesday, March 02, 2011

Strong demand for new build homes in France

There are not enough new homes being built to satisfy growing demand, particularly in popular destinations like Paris and in the Alps, according to French mortgage firm Athena Mortgages.

Demand for new build homes in France is being supported by tax breaks for French property buyers, which in turn is creating added competition for Brits seeking to buy property in France. France remains one of the most popular places to buy a home overseas, as far as Brits are concerned.

French buyers have been offered extra tax breaks by the government allowing them to offset 25 per cent of the property value against their income tax liability.

Athena Mortgages director John Busby report that just over 115,000 new build homes in France were sold last years, only marginally lower than the 125,000 new French properties sold at the peak of the market in 2007.

Busby comments: "The ultra low interest rates combined with excellent tax breaks has created a buying frenzy in France which has meant that many investors from Britain had been missing out on the prime units, preferring to wait until something more suitable comes along. At times our clients have found there to be a lack of choice in some developments as French buyers have been snapping up the best available units immediately."

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