According to the notaries in France – and they should know because they’ve already seen the preliminary deeds pass through their offices – the property prices in France are going to plummet with 7% in the next two months. Seven percent! In two months!
There are several developments behind this rapid and sudden decline. First of all, several tax advantages have disappeared, like the fiscal benefit for investment in low price rental homes. Also, the 0% loan for first time buyers (‘les primo-accédants’ as the French daintily say) is history. This kind of kicks the bottom out of the market.
When it comes to older, existing property, investors are afraid for stricter rules concerning rental prices and banks are more en more reticent when it comes to taking risks with mortgage loans. “Still”, a spokesman of the notaries tried to lift spirits a bit, “We can’t speak of an exploding property ‘bubble’, because the French still regard property as a solid investment for the future.” No kidding… with these prices!