Experts in real estate South of France credited the robust development this past year towards the enhanced financing conditions carried out by the French government’s safety net which prevented the country’s economic decline.
Thanks to these steps the final quarter of 2010 witnessed those contemplating investing in property available South of France could actually borrow more at historically low interest. With French mortgages striking post war levels of 3.3% down from 5% just two years ago.
This increase in confidence was shown throughout last year with the return of the big transactions in luxury property for sale. The number of luxury property investment worth more than 100 million Euros has dramatically increased by 75% year on year. Real Estate in Cannes was just one area to see increased ‘high end’ sales at the close of 2010.
Believed to be much more dependable than other asset classes like bonds and equities, buyers believe real estate France investment to yield better long term security. Thierry Laroue-Pont, CEO of Real Estate Advisory France was cited as saying: “Some of the underlying markets appear to have weathered the crisis, such as retail premises, new buildings with guaranteed cash flows and classic freestone buildings, which remain a safe haven for investors.”
Source: International Living