Property prices in France – Where are the bargains?

Where are the property investment bargains in France? Having just spent two weeks wandering around Northern and middle-France to take a look at the markets and see what is going on on the ground as it were, I would say they have not yet surfaced, and the stunning amount of property for sale in France means we have a lot further to fall before seeing genuine bargains. I visited Brittany and the Dordogne to see just what was going on.

Property prices in Brittany.

Hand written price reductions in an estate agent's window in Brittany

There is a massive amount of property for sale in Brittany, and asking prices in the flesh are negotiable at between 25-45% less than peak 2006/7 prices. Having said that there is a drastic difference between the drops inland and on the southern coast line where prices have only come down around 10-20% so far. Denial is alive and well in certain corners dominated by Dutch, Belgian and German buyers. British sellers are being more realistic, although it is fair to say the price drops so far are really only reflecting the fall in the value of the pound. One local paper had pages upon pages of property for sale, many of which were being offered by Brits.

During two weeks at the height of the season, I never once had trouble finding a place to stay at late notice and in some cases negotiated a lower-than-advertised price for the rooms. The weather was atrocious, the market for Gites/Chambre D’Hotes is completely saturated and will propably be years recovering. No doubt also being affected by drops in tourist numbers, the real bargains have not come out to play just yet, despite the fact that almost every estate agent in the region has hand written price reductions throughout their window displays. Every owner I spoke to was having a poor season, with a few exceptions being well-established, up-market properties not relying on British visitors.

Property prices in the Dordogne

Property prices in the Dordogne have not yet fully adjusted

Once again, the Brits are being more realistic and prices have fallen around 25-30% but still only reflect the pound’s value. Many of these properties are being used as Gites or Bed and Breakfasts and I suspect, like Brittany, it will take a poor season for prices to genuinely reflect reality. Also like Brittany, the amount of property up for sale is quite amazing and the countryside is littered with “A Vendre” signs. Very few Brits were in evidence, but there was a strong Dutch and Belgian presence.

The French Market

Unlike British banks, French banks are still lending, although this is of little value in the British enclaves of Brittany and Dordogne. Despite the fact that 100% mortgages are still available in some cases, a euro mortgage being paid with GBP income is almost as dangerous as a sub-prime mortgage. The possibility of more shifts in the currency exchange rate make this a no-no. Patience or cash is the answer.