Comparing Property Prices in the UK and France
Are property prices overvalued? What is the right price for a property?
A newspaper article last week claims from an “expert” that property is overvalued both in France and the UK. I am not sure what that means, I always believe that something is only worth what someone is prepared to pay. What I am seeing this week already is a large number of owners asking me to reduce the prices of their properties as they need to sell.
I am also seeing the prices now asked for many houses on other agency lists are being reduced, in some cases by up to 60 percent, but overall about 15 to 20 percent.
This seems to be inline with the figures from the Notaires records of actual sales (not asking prices) over the last three to six months. These Notaire figures have to be studied very carefully in country areas (Languedoc villages for example) as one large sale in a small village can completely slew the figures up or down - they are much more relevant in a big city and in Paris you could almost paint the price on the rooftops.
August is always a silly month, but I can see that property prices in France are “stabilising” (realtors word for “not going up”) and in many cases are “negotiable” (realtors word for “nobody is interested”), some are even “exceptional value” (means - “we are getting desperate”)
There is a very big demand for property in France, but, at present, there is a larger supply of property for sale than people buying. The effect is for prices to adjust to the level of demand - so I expect advertised prices to fall about 25 percent on average over the next few weeks.
A few will go up, some will not change, many will drop their prices - I can only suggest a “right price” based on what properties are selling for - not what other people are asking.
Here is a mail I had today…
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Hi,
I recently read in Daily Mail (31/07) that UK is second only to France in terms of overvalued property prices. This came from “respected Fitch credit rating company”.
I want to buy in France but can’t understand why Fitch have reached this conclusion, as prices there seem a lot less than UK.
I am definitely going to Brittany,I will rent for 6 months, probably in Vannes and then buy.
I am not quite sure what to buy because I keep hearing stories about horrendous convertions costing a fortune and just going wrong.
Vannes however, and indeed anywhere near the coast, seems to be quite a bit dearer than inland and I have been looking at the Pontivy region.
If you have any advice I would be grateful.
Regards
Sean
Any comments
Regards
Sean
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Hello Sean,
Yes, I read that article and was also puzzled by his “conclusion” which is not based on any supportive material.
My observations about France are based on the actual recorded selling prices and these are stabilised at present and not increasing overall - I am seeing the asking prices being reduced from 10 percent up to 30 percent - but asking prices are not relevant - the value of a property is what the market is content to pay for a property and there is currently a good demand for the right property at a fair price.
Popular, coastal areas are always more expensive than places where people don’t go much - remote is always much cheaper than communities with shops and services - remote is also harder to sell, great for a visit or holiday but a couple of weeks is enough for most people, which is why it is cheaper. France is a big place, much bigger than the UK.
In my opinion, inland Brittany (inland anywhere - more than 50 km from the cost) is best left to postcards and travel brochures.
Unless you are able and experienced in property renovation, just don’t do it - too many people have lost their shirts and their spirits renovating old property in France - I have written a lot about this in my blogs and newsletters at http://www.twiku.com/ and http://www.fruk.eu/
Property in France costs about the same as property in the UK, except you get slightly more for your money - living in France costs about the same as the UK except you get better quality - you cannot put a price on the quality of life and happiness is in your own head.
What I am trying to say is - whatever you have at present in the UK, if you are realistic and take care, you can find a better lifestyle in France for the same resources and assets. But don’t jump blindly and take on something you would not do at home.
Hope this helps
Bonne Chance
Tony
best wishes
Tony
