The author of the analysis, Xavier Basil, first takes a look at French markets observer and forecaster PrimeView, whose assertion made in May this year, claimed that the French real estate market was due for a major downwards correction.
London, UK (PRWEB UK) 22 November 2012
Investors’ portal iNVEZZ has recently published an editorial with the outline that despite concerns from some quarters of a bubble in French property prices, the market remains staunch. The author of the analysis, Xavier Basil, first takes a look at French markets observer and forecaster PrimeView, whose assertion made in May this year, claimed that the French real estate market was due for a major downwards correction – a bursting of a housing bubble. Yet, as Basil notes, “the summer’s been and gone and the French housing bubble – if bubble it is – has yet to burst.” Is a bubble in French residential property just scaremongering or a real potential concern? And if it is, when should existing and potential investors expect the pop? These are some of questions Basil puts forwards in his recent editorial by taking the approach of comparative analysis and providing up-to-date figures and arguments as to how they should be interpreted.
After outlining the current status of the French property market and providing readers with the latest statistics, Basil extrapolates to compare France’s current property market to the US market in 2009. “Whilst this is high in historical terms for property in France, a ratio of 1.84 happens to be where the post-bubble United States national market settled back to in the third quarter of 2009, after peaking at 2.77 in Q4 of 2005,” Basil writes. His analysis continues with the main difference between the two markets – the price-income ratio, which in France is currently deteriorating. Yet “this needn’t indicate a bubble,” Basil remarks, citing the increased income levels in the country, which offsets to a degree the rise in property prices.
iNVEZZ’s analysis on French residential property also takes a more localised look at the topic – what areas should be considered in property investment terms. Basil narrows readers’ attention to one particular region in the south-west of France – Dordogne -- which has long been attracting foreign and especially British buyers. The area’s “special investments case” is described by Basil in detail, with the conclusion that “for Dordogne at least, such statistics do not indicate a housing bubble, let alone one about to burst.”
Moving on, Basil includes in his comprehensive analysis some recent information in regards to the property loan market in France, which may have not reached investors outside the country. To sum up, Basil highlights that amongst all the traditional destinations for foreign – and especially British – investment in residential property, France represents a special case. “Perhaps the perfect storm has only grazed its shores,” Basil concludes.
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