french tax reforms boost the property market
News Posted On: 15 September 2011
According to new data French property prices grew 3.3% quarter on quarter in Q2. The rise is being put down to the newly reformed property tax rules. According to the report, the growth is fuelling demand from foreign buyers, despite warnings that the increases will slow once the full effects of the new taxes become more evident.
Prices in France have increased for five consecutive quarters, and have risen by 6.8% so far this year. However property experts are taking a cautious view; that prices should stabilize and could even fall slightly by the end of the year. They warn sellers to be realistic about their property's value, and say accurate pricing should result in transaction levels remaining stable -- to the benefit of both sellers and buyers.
The new rules are for capital gains and wealth taxes, with the threshold for wealth tax increasing from €800,000 to €1.3 million. Households with assets between €1.3 million and €3 million will be liable for wealth tax of 0.25%, while households with assets over €3 million will be taxed at 0.5%.
The effect of these new rules on Paris and the Ile de France region remains to be seen, as prices here have increased by an incredible 22.5% during the last year. The average price per square metre in Paris is now €8,150, but it does look as if apartment prices in the capital are beginning to peak. It appears likely that the volume of sales will decline in August and September, followed by a price decline in October. It also looks as if prices are beginning to stabilize in the Ile de France region.
View property for sale in France
Written by Les Calvert
Back to news articles for this country
Latest Related News Articles in France
French Property Market and The New French President
2012-05-10
The recent election of Francois Hollande as the French president is not likely to have a big impact .....
Legal Guide to Buying in France
2012-05-08
A quick legal guide to buying a property in France through the eyes of a French legal property exper.....
High End Parisian Real Estate in Demand
2012-05-02
If you think that the Eurozone crisis has lowered Paris's commercial property appeal, you couldn’t b.....
France and Spain Are Still Top amongst UK Buyers
2012-04-25
Brits looking for homes abroad still favour France and Spain above all other locations, according to.....
French Lenders Quick to Pass on Reduced Euribor to Borrowers
2012-04-16
Of course, this is potentially good news for those buying property anywhere in Europe, but as has be.....
Property Prices in France Increase by over 4pc
2012-04-11
According to new statistics from the National Institute for Statistical and Economic Studies, proper.....
French Developers Expect to Benefit from UK Retirees
2012-01-11
The number of people reaching retirement age in the UK is due to increase by 22% this year compared .....
Alpine Property Sales Up as Resorts Increase Year Round Appeal
2011-11-04
Alpine property is increasingly being seen as a good investment opportunity with solid year round re.....
French Property Still Most Popular With Brits Says Conti
2011-09-22
According to Conti, the overseas mortgage specialist, France is still the most popular country as fa.....
France still No1 for Brits buying abroad
2011-09-19
Contin Financial reveals its overseas hotspots for mortgage enquiries over the past year......