By Phil Scullion Follow philscullion
The victory of socialist candidate François Hollande on Sunday represents a seismic political shift for France, which could reverberate across the French property market.
Hollande defeated beleaguered incumbent Nicolas Sarkozy to become France’s first leftist leader since 1981.
France had been following a policy of austerity in an attempt to deal with the crippling economic problems which have been felt across Europe, but Hollande has pledged to renegotiate European treaties to avoid continuing cuts.
However Danny Silver, expert in French real estate and managing director of The Villages Group, predicts that there will be “minimal to zero” effect on the real estate market.
He said that it will be “business as normal” despite Hollande’s victory.
“Being married to a top French economist and having lived in France for the past 15 years, I have been exposed to the French elections as they happen.
“It is important that British 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.”
The legal process in France is expected to remain the same, with real estate litigation rates in the country at 0.3 per cent, a tiny fraction of the 3.9 per cent in Europe as a whole and eight per cent in the USA.
Silver added: “The new presidency will not impact on many of the factors that affect the purchase of French real estate such as currency or the buying process, and with France consistently ranking as one of the most popular countries in which to live and with property prices remaining stable there is no need for potential British buyers to worry.”
However it is thought that the French election could have a knock-on effect on the British property market, with the oft warned talent drain as a result of high tax rates taking place in reverse.
Wealthy French investors are likely to view London as an appealing option, particularly if the UK’s capital city retains its ‘safe haven’ reputation and property prices continue to grow.
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