The growing French market for new properties
December 01, 2015 - France
After seven years, the market for new properties in France is finally improving, claims a leading European property specialist.
For the third quarter running there has been a rise in new property sales, which are up 23.1% to 30,764 new property reservations and in the year to June 2015 total sales rose 19.3%, according to figures from the Observatory for the Federation of Property Developers in France (FPI).
In addition, the Minister for Housing in France declared a rise of 21.8% in new-property sales in the same period.
This improvement can be explained by the leap of 66.2% of sales to investors since the beginning of the year, the FPI says.
Another major factor boosting sales has been the new Pinel tax scheme, which came into effect at the start of the year, says Pierre & Vacances Property Investment (PVPI).
Pinel tax exemption scheme is more appealing and flexible than its predecessor, the Duflot scheme, which generated little interest from investors, says PVPI. Pinel allows the contract holder to choose between three durations (6, 9 or 12 years), this rental investment incentive scheme also offers the possibility of letting the property to a family member (a parent or child).
According to the FPI, weak interest rates have stimulated the demand for this measure. Read the rest of the story @ opp.today
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