As we commence the New Year, we would like to take the opportunity to thank you once again for having contacted us here at FlatHunter with your property search enquiry in 2006 and to wish you all the best for this year, 2007.
June 2007
Following the election results, the heat is expected to rise in the French real estate market
January 2007
Faced with the weakening dollar, more and more foreign buyers are investing with Euro loans
We hope that you have had every success with your property acquisition and that you have indeed found the apartment of your dreams. If you are still looking for that ideal apartment – or perhaps are looking for another – we would be most happy to give you further details of our services and how we can best help you towards that aim. We would be happy to discuss what you might be looking to buy and to give you a brief overview of the current Paris property market.
The Paris market remained firm throughout 2006 and is expected to remain so in the upcoming months. Prices have continued to rise steadily, with certain of the more desirable areas experiencing sharper upturns than expected by the Chambres des Notaires here in Paris. This trend is forecast to be ongoing and it is indeed a good time to be making a property purchase here, be it for investment or for personal use.
The rental market is still strong, with Paris holding its place as the foremost tourist destination in the world and as a result, short-term tourist rental properties remain highly sought-after. There is, however, a noticeable increase in the number of studios on the rental scene and as a result we advise our clients who are thinking of investing in the short-term rental market to avoid, if possible, adding to these already over-supplied apartments. We strongly advise purchasing a minimum of a one bedroom apartment to ensure the best occupancy rate and rental return. Obviously a well-appointed studio in an excellent location will always bring a good return, but with the strong competition in this size apartment range, it must have something special indeed to stand out from the rest!
The better apartments, in the best areas and in good condition, remain highly sought-after with prices ever-increasing and the market remains very lively, with apartments remaining available only for a matter of days (sometimes hours if they are well-priced!) after they have been listed.
The arrondissements which show the strongest increase are the 19th (+ 19.1%), the 20th (+18.3%), the 5th (+17.9%), the 7th (+16.2%), the 1st, (+16.1%), the 10th (+15.7%), the 4th (+14.6%), the 3rd (14.0%), the 12th (+13.1%) and the 18th (+13.0%) [as per the latest figures released on October 6th by the Chambres des Notaires de Paris].
The chambres des notaires had forecast that overall Paris increases would be down to single-digit figures by the last quarter, but this occurred in only two arrondissements, the 16th (+7.1%), which is a family-oriented neighbourhood with less sale and resale activity, and the 6th (+9.9%), which is already a very highly-priced neighbourhood.
The interest rates in France continue to be very competitive despite a predicted increase of 0.25% to the European base rate in the next few weeks. Experts say that 2006 was just a correction and that the rates should still remain low. The outlook remains the same, mortgage rates in France are still very low with many excellent fixed rate or fixed payment options to minimise risk in a rising interest rate environment. Mortgages are still available starting from tracker rates at 3.5%. French banks are also becoming increasingly accommodating for non-resident borrowers and their packages are becoming more and more competitive.
We at FlatHunter are still working in close partnership with a number of banks with Anglophone staff, as well as with France Home Finance, a mortgage company specialising in non-resident lending. They make the somewhat complicated mortgage application process here much easier to navigate, as well as finding the most suitable loan packages to suit foreign borrowers’ needs.
We have also had very good feedback throughout the past year from our clients who have used the currency conversion services of HIFX, whom we recommend, with a number of our clients having saved a great deal of money in their property transactions by implementing and fixing their currency conversion rates in advance. This is very important in a fluctuating currency market such as we have seen throughout this past year. We are always happy to introduce you to any of our trusted partners for you to obtain the best advice about your financial options.
We are also forging new partnerships with a number of different rental agencies, both in the short and long term tourist rental markets which can provide our investment buyers with more choice in the type of rental returns that may best suit their requirements and we are happy to be able to offer our clients a broader choice in service packages and fee structures with the different agencies with whom we now work.
We also have strengthened our partnerships with the various real estate agencies, notaires, architects, contractors and designers, to name but a few of the service contacts that we are happy to provide in order to make the purchase and renovation process as fluid and stress-free as possible.
We have had a very successful year in 2006 here at FlatHunter, with nearly all of our clients having purchased their dream apartments with us within the first few days of their search. We are very proud of our success rates and are always working towards improving our services and our performance. Any feedback that you may have to offer us to help us achieve that aim would be much appreciated.
If you would like any further information regarding finding your ideal apartment in Paris, please be in touch with us either by email, or on the numbers below.
