Decreased UK Property Investment Due to Political Uncertainty
How has Brexit had an impact on buying homes in France? A recent study by Real Capital Analytics shows a 31% decline in UK property investment transactions in 2019. Political instability caused by Brexit is the main reason. Concerns about investing in France lead to property plan adjustments. In a “hard Brexit,” French property sales may increase.
Potential Market Disruption and Opportunities Of Buying Homes In France
Without a Brexit agreement, over 100,000 properties could flood the French market. This surge would cause significant price drops in popular ex-pat regions. If a Brexit agreement is reached, hesitant British buyers may proceed, increasing purchases. Some Brits have already resold their French properties due to Brexit complications.
Boost in the Luxury Real Estate Market in France
France remains attractive for luxury real estate investors, especially in Paris and the French Riviera. Brexit favors the luxury segment of the French market. Carlton Group witnessed this with a property sold in Saint-Tropez. The luxury real estate market continues to evolve, with active investor interest.
Relocation Impact and Financial Opportunities When Buying Homes In France
Buyers leave London in anticipation of relocating businesses due to Brexit, raising luxury goods prices in Paris. The City of London Europeans contributes to 12% of luxury real estate sales in Paris’ high-end districts. HSBC plans to transfer 20% of its staff from London to Paris in case of a “leave” victory. French nationals working in the UK consider returning, further boosting the market.
Brexit’s Impact on British Tourism in France
British residents in France stay for shorter periods in second homes or tourist accommodations. They own 86,000-second homes in France, representing 17% of all second homes. UK residents were the top foreign customers in France’s tourism industry. However, nights spent by UK residents decreased while those by visitors from other countries increased. This decline affects all tourist areas, with a significant impact in the Alpine massif, but a relatively milder impact in urban areas. Insee suggests Brexit’s economic context influences this trend.
