The residential property market in France has always been an attractive prospect for people seeking a second home to move to overseas, as well as usually being at the forefront for consideration by potential investors, but is the housing bubble in France about to burst?
Investors’ portal iNVEZZ published an article recently that claims that the market remains staunch despite fears from some quarters that there is a bubble in property prices in France. Xavier Basil, the author of the analysis, dismisses claims from French forecaster and market observer PrimeView, who made the first assertion six months, ago back in May, that the real estate market in France was due for a massive downwards correction – the bursting of a housing bubble. Basil points out that “the summer’s been and gone and the French housing bubble – if bubble it is – has yet to burst”.
So is the notion of a bubble in the property market in France a real concern or just scaremongering? If the former, when should investors, both existing and potential, expect it to happen?
Basil outlines the current state of the property market in France and compares it to that of the market in the United States in 2009, using all of the latest statistics. Basil also points out that there seems to be no indication of any bubble at all in Dordogne, a region in the south west of France, which has long attracted attention from foreign movers. “Such statistics do not indicate a housing bubble, let alone one about burst,” he says.