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Will new French President affect French property?

Nicolas Sarkozy has become the first president in 31 years not to get elected to a second term. Many have predicted that Hollande’s success will have a major impact not only on European Union policies but also on the French economy; the new president favouring growth over Sarkozy’s steadfast commitment to austerity. But how will the presidential change affect French property prices? And will French property start to lose its global appeal?

Across the board, very few have expressed concern.

The International Business Times felt that the election of socialist Hollande was unlikely to have much impact on the country’s property market.

The global property news service, Propertywire.com felt that the affect on the French property market would be minimal to zero because the new presidency would not impact on the actual buying process, France being consistently ranked as one of the most popular countries in the world to live. In fact they stated currency fluctuations as a more likely cause of change to the French property market, and one that was having a very positive impact. British buyers in particular were benefiting from the strength of Sterling against the Euro and the continued competitiveness of low cost French mortgages.

Knight Frank stated that even post-election, property buyers still view France as a safe haven. In relation to the movement of property prices John Stephenson was quoted as saying that
“set against the current backdrop of financial instability, the Eurozone’s debt crisis and the 2012 French presidential election I expect [french property] prices will remain largely static in 2012”

Charles Purdy, the managing director of Smart Currency Exchange felt that with Sterling continuing to hold above the €1.20/£1 level the interest in buying in France would be unrelenting.

And French developer MGM went on the record to say that more British people than ever were looking to buy French property, specifically in the French Alps. MGM has already sold all but 18 of the 70 apartments in its newest development in the Haute Savoie, mostly to international buyers.

The International Business Times stated that
‘It is important that overseas buyers remember that this election was simply a vote for the French Presidency not the government so there will be no particular implication on the real estate market. It is business as normal,’

The BBC agreed, its commentators feeling that the only thing likely to go down in France was the new president’s popularity when his voters and supporters realise he’s unlikely to deliver on many of his pre-election promises.

As always it seems French property, specifically Alpine, Provencal and Parisian are maintaining stable prices and have a continuous stream of new buyers.

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