Pause expected in Paris Property market
Residential real estate sales flourished across Paris at the start of 2012 but the coming months hold no such promise according to several leading French property experts.
Before the introduction of new capital gains tax rules at the beginning of February a higher number of dwellings were listed for sale as vendors were keen to sell before the new legislation was in place and buyers stepped up to take advantage of keenly priced properties while enjoying low interest rates offered by French mortgage lenders. In the months since local agents report a drop in sales activity and a fall in stock levels.
The Paris property market is not overwhelmed with overseas buyers as is the case with central London properties. International investors are often put off from buying real estate in France due to the amount red tape involved.
Demand for prime location Parisian property is highest among well off French nationals who are currently choosing to invest in real estate rather than risk the ups and downs of the stock market.