Prior to the global recession, property prices had been rising steadily. France has long been an interesting investment opportunity for foreign buyers because of low mortgage rates. Just recently, President Nicolas Sarkozy’s government dropped a proposed second home property tax for newly purchasing expatriates. The proposed tax, if approved, would have introduced a new 20% tax on second homes in France owned by non-French residents.
Some experts are still skeptical about the French economy’s recovery, considering the current Greek debt crisis, increasing inflation, and a public debt that accounted 82.3% of GDP in 2010, and is expected to reach 85.4% this year.
Economic constraints along with the crisis within the Eurozone will have an impact on real estate prices in France. Many experts say that the pace should slow down as economic events unfold.
