Fall in Euro benefits French Riviera real estate market

Jan. 12, 2011 - PRLog -- The British pound traded this week at the 1.20 Euro mark for the first time since September 2010, making European property and all things European more affordable to international buyers.

A strong pound fueled many purchases of real estate in France throughout the 2000's with hundreds of thousands of Brits owning properties in France.

Is the weak Euro a trend we can likely see continuing?

Donal Warde, of Warde Property real estate agents in Nice explains: "The European sovereign debt crisis seems to be the most important factor governing the rate at the moment and despite the recent Irish IMF/EU bailout, the crisis is far from over. Worries about Portugal, Belgium and Spain abound."

"The British economy seems to be on a medium term upward swing with relatively strong business and consumer sentiment. Although immediate weakness is quite possible (especially with the new VAT rate likely to deter consumer spending in Q1 2010), the medium term direction is more positive, with Gilt yields falling in the months following the UK election last year", Warde continues.

How much does he expect it to influence the property market?

"With Brits making up a substantial proportion of foreign property buyers on the French Riviera, the GB/EURO rate is of critical importance. Crossing the 1.20 threshold, we have passed a major psychological barrier and we can expect a positive increase in activity."

"We should not forget that the Euro is also falling against the US Dollar, among other currencies, but with the US economy in a challenging position, a major rebound in US buyers seems not to be on the way in the near future."

To take advantage of the latest currency movements, Warde Property recommend contacting a specialist foreign exchange company.

Finance for French property purchases is generally available to foreign buyers with up to 90% of the cost price financed by French lenders. Obtaining finance further reduces the amount of currency that needs to changed.

www.wardeproperty.com

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http://www.wardeproperty.com
Estate agents in Nice, France, with villas and apartments from sale across the French Riviera. Warde Property specialise in international clients buying or selling real estate on the French Riviera.