Why Luxury French Real Estate Is Cheap
Real estate agents and French property experts are reporting that a ‘flood’ of luxury homes are coming to the market as wealthy homeowners seek to leave the country before tax rises hit.
Plans by the new Socialist president Francois Hollande to increase income and capital gains taxes have led to many rich French property owners placing their properties on the market. Keep reading to learn more about the falling prices of luxury homes in France.
More luxury French properties are being listed on Homesgofast.com by owners and agents each day.
Daniel Feau, a leading high net worth real estate broker, said: “It’s nearly a general panic. Some 400 to 500 residences worth more than one million euros (£800,000) have come onto the Paris marke.
The Nation reports that while the exodus is not on the scale of that following the election of Francois Miterrand in 1981, the tax plans of the new president are having ‘a noticeable effect’. Finance Minister Pierre Moscovici said he has seen ‘no indication of a massive fiscal exodus’.
The Socialists plan to increase the top rate of income tax in France to 75 per cent for income over ?1 million. However, according to Didier Bugeon, head of the wealth manager Equance, is it a sharp increase in taxes on capital gains from the sales of stock and company stakes that is pushing most people to leave.
There has been a sharp increase in the number of luxury properties coming onto the market. This has also resulted in a five per cent fall in the price of luxury Paris apartments over the last three months.
Interest from foreign buyers remains strong and so I don’t expect there to be a major collapse in house prices.