Since 1998 this represents
an average annual increase of 9.2%.
Regional variations reflect
the difference of buying power, quality of life, economic development and
the geographic and climatic appeal.
The volume of demand has
risen in the last three months though there is evidence of more price
consciousness within the British client base due to the recent currency
slide.
There is a high percentage
of buyers looking to do gite business and we have some concerns that this
market will become saturated in the next couple of years if this trend
continues. There are many investment opportunities however with some
properties offering net returns after costs, pre tax of around 8%.
2001
Despite
the attacks of the 11 September the market has rebounded rapidly and is
reaching unexpected levels of growth. Despite a reduction in transactions
in the last quarter 616000 transactions were registered during the year.
Over the
last 5 years the volume of transactions has increased at a rate of roughly
4,9% per annum. There are several factors which help to explain these
statistics.
-
a
reduction in transfer costs
-
an
economic revival which has been constant over this period
-
reduced rates of borrowing
-
stability in demand which has lead to more consistent and realistic
pricing across the marketplace.
The SW
has been the best performing area in France for
older homes with the market being dominated by house sales
with relative weakness in the
apartment sector. Old homes have risen by 13,6 % whilst apartments have
only risen by 3,9%.
Prices
realised on average: 1 296 euros / m² in the
SW. (Source FNAIM)
The
highest growth has once again been experienced in the fine home market
where 6% of sales were registered to foreign buyers.
The
average holiday home is held for a period of 8 years and the average
permanent home for a period of 13 years.
Many
experts have predicted a slowdown in demand for 2002. Our experiences
this year run contrary to this expectation with demand far outstripping
that of previous years. This is being balanced by a good supply of
property at the moment. House prices in the SW still provide some of the
best value to be found across central Europe. These factors are helping
to keep prices progressing upwards at levels we believe to be sustainable
for the foreseeable future.
2000
Real estate in France has
enjoyed sustained growth over the last three years and fine homes have
risen by as much as 25% over the last year alone. The Côte d'Azur/Provence
region proved to be the most popular region for purchases of secondary
homes last year with average prices around 2.5 m ff. The Dordogne the
second most popular choice with average prices around 800 000 ff, the
Haute- Savoie region of the Alps followed with prices averaging around 2.5
m ff whilst the Gers was fourth on the list with prices averaging around
1.6 m ff.
Despite the increase, there is
still good value to be found in French real estate due to the following
conditions.
-
Notaires fees and purchase taxes
have been reduced from 12.5% to around 6.5% over the last three
years.
-
The Euro close to all time
lows. The Franc has lost 40% of its recent value against Sterling.
-
France still enjoys low interest
rates.
If
you are wanting to acquire a house in France the conditions are currently
most favourable.
There is a shortage of fine
property for sale in Gascony, but the position has eased slightly over the
last few months and we currently have a small selection of attractive
homes in most price categories.
The fact that we are based in
France means that we are in a position to offer professional hands on
service and support starting with your search for a home, attention to the
specifics related to the purchase and following through with help and
advice to ensure that you are comfortably settled.
Feel free to ask any questions
about the region, life in France or details pertaining to purchasing
property in France. If you don't find what you are looking for on our
site, let us know your requirements and we will endeavour to find it for
you.
Our
agency is based in South West France, in the heart of
Gascony.
It is a magnificent region bounded to the West by the Bay of Biscay and to
the South by the Pyrenees Mountains. Today these co-ordinates account for
the regions varied attractions. Both the ski slopes of the Pyrenees and
the bleached beaches of the Atlantic coast lie within easy reach of a days
outing.
If
you are looking to improve your quality of life, the region offers
the cleanest air in Europe, low levels of crime and absence of traffic
congestion resulting in one of the longest life expectancies in the
world!
Contact us if we can help with
travel
arrangements or accommodation in the area. We have a good
selection of
houses and gites for holiday rental and can suggest an
itinerary with stays at some of the excellent chambre d'hotes in the
area.
Hankering for History
Boosts Castle Sales
By
JUNE FLETCHER
Staff Reporter of The Wall Street Journal
From
The Wall Street Journal Online
April 22, 2002 -- Olivia Decker's home
is her castle. In fact, two of them are -- both French and built in the
17th century. "They make me feel like a queen," says Ms. Decker, who
spends most of her time at a house in northern California.
Think the U.S. real-estate market has
been strong? Well, the foreign castle market has done even better. Chateau
brokers say business has jumped as much 20% during the past two years,
helped by everything from the euro (it's been weak) to the Internet (it's
made properties easier to find) to comparatively low prices that mean you
can pick up an 18-room castle for less than a two-bedroom in New York. The
result: For a select group of people these days, a house isn't worth
buying unless it has a moat. People "want to buy a bit of history, even if
it's not theirs," says Alexander Kraft of Sotheby's International Realty,
a big player in the business.
While the number of sales is still small,
brokers say the hottest markets are in Italy or Austria, where a
picturesque schloss runs into the millions. But in many other places, you
can pick up a castle for surprisingly little. One South African manse is
going for just $365,000 (the armor, antiques and rugs will cost you an
additional $98,000). In France, the government will even help pay to fix
up your chateau. True bargain hunters look east. In the former East
Germany, some rundown historic castles are available for a single "symbolic"
euro (though new owners must agree to invest $1 million or more on repairs),
and in Poland, you can pick up a palace for about $80,000.
No Comforts of Home
But don't expect all the comforts of
home. "It's not unusual to have 50 bedrooms, one bath -- and no roof,"
says Sotheby's Mr. Kraft, who also warns buyers to expect drafts, leaks
and vermin. Castle owner Jay Morton -- he bought a 17th-century chateau
near Biarritz, France, for $700,000 -- spent an additional $400,000 fixing
up his place, including putting on a new roof and replastering the walls.
The biggest surprise: He had to import all the furniture from the U.S.
because he found French antiques too small and too delicate for his
7,000-square-foot castle, as well as for his 6-foot 2-inch frame.
Castles, of course, have long had
cachet, and the market has been strong before -- especially during the
booming '90s -- so why the rush now? Analysts point to the weak European
economy, which has lagged behind the U.S.'s, making exchange rates
favorable. And while properties in major cities have shot up in price,
castle prices haven't climbed at the same rate, making them relative
bargains. Finally, many wealthy buyers are looking to keep their money out
of stocks, and they are especially attracted to real estate with a
pedigree.
The word castle itself comes from the
Latin castellum, for "fortress," and the earliest ones -- huge,
thick-walled homes -- date back to about 500 A.D. More elegant versions
sprang up in the early middle ages, emphasizing design over defense, with
formal gardens and fanciful turrets in place of battlements. Until
recently, it was pretty tough to find one to buy: There's no castle
multiple-listings service, and many sellers don't advertise, for fear of
everything from attracting the notice of tax authorities to having
long-lost relatives protest, French broker Kay C. Van Der Jagt says.
But a host of new Web sites and services
has made it easier to castle-shop. Last year, Web site Castles of the
World had just four places for sale; now it has 15, including an American
castle in Berkeley Springs, W.Va., (it's up for auction) and the South
African palace. In some cases, buyers even get a title along with the
title -- one 20-room French chateau carries with it the right to be called
a duke.
The actual historical connections can be
tenuous, though. Gail Ball recently bought a 17th-century Caribbean
complex known as "Blackbeard's Castle," in St. Thomas. Does that mean the
legendary pirate lived there? Well, maybe. "We haven't been able to
establish that," Ms. Ball says. "But it gives it a pirate's mystique."
Like a Yacht
Heinrich von Hanau, a Miami developer,
says castle life isn't all it's cracked up to be. (He'd know, he was born
Prince Freidrich Wilhelm Hanau Count Chaumburg.) His biggest memories of
his family's 15th-century Austrian palace: dark, spooky hallways, and not
knowing whether he'd get hot water -- or any water -- when he turned on
the tap. "Owning a castle is like buying a big yacht," he says, with
equally big costs for staff and maintenance.
Indeed, the electricity bills alone on
the Fez, Morocco, palace that Kouloub Cotrell and her relatives own run
$6,000 a year. It is, after all, 27,000 square feet, with a music room big
enough for a full orchestra. And the repair bills are so high at
Christopher Kump's place -- a 12th-century Austrian schloss inherited from
his grandfather, that he's decided to sell. The only problem, says the
Fort Bragg, Calif., carpenter: It's hard to show when he lives 6,000 miles
away. Then there are the quirky local laws. At one point, Hollis Baker,
who has owned seven castles during the past 30 years, became a farmer,
because he worried that, under French law, his neighbors might have the
right to buy his untilled fields.
Despite all the headaches, some new
owners say they're sold on castle life. Ms. Decker spent $5 million for
her latest chateau, a palace near Versailles, then put in $1 million more
to modernize it. Even so, she says, it's a "great value" compared to what
the same money would buy back home. And Mr. Morton won't be pulling up the
drawbridge anytime soon. Not only is he the envy of his American friends,
but his new French neighbors treat him royally, even throwing a special
dinner for him after the annual summer festival. "I'm living out the
ultimate fantasy," he says. "I'll keep this house forever."
FRENCH PROPERTY
