French property prices continue rising

Friday, September 02, 2011

French property prices continue rising

Property prices have risen for the fifth consecutive quarter according to reports by FNAIM.

Prices of properties sold by the organisation's members have risen by an average of 3.3% with a large rise of over 4% in more rural areas outside of Paris.

The new wealth tax rules coming into place are making France one of the most attractive destinations in Europe, as the threshold for this tax (ISF) is increasing from €800,000 to €1.3 million. Households with assets of between €1.3 million and €3 million will be subject to a tax of 0.25 percent and for assets over €3 million the tax will be 0.5 percent. As a result, and coupled with changes in capital gains tax, wealthy buyers from overseas are flocking to the country.

Estate agents Leggett Immobilier have announced that they have seen a large upswing in interest in French property, however Trevor Leggett, Chief Executive, urges those selling property to be sensible:

"Further headlines of house price rises need to be treated with caution. We know that the average price of property sold in France by FNAIM members has increased by 6.8% overall this year but it's important that vendors expectation levels remain realistic. Sensible pricing will mean that transaction levels remain consistent and both buyers and sellers will benefit.” he said.

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