A Wave of Optimism Hits the French Economy and Property Market


A Wave of Optimism Hits the French Economy and Property Market

Is this the right time to sell property in France?

Well, it’s certainly not a bad time as property prices in Paris and other places in France have gone up by a substantial extent over the last 12 months. You may call it the “Macron Effect” or whatever, but the fact is, Emmanuel Macron has done nothing wrong since he took over as the President of France.

As Hugues de La Morandière of the Agence Varenne says in an interview with the Financial Times, “We’ve now got a powerful combination of positive factors for the market: low interest rates, the Brexit effect [ . . .] and the election of President Macron that has brought a wave of optimism.”  

Fact is, France serves as an attractive alternative right now given the sort of political uncertainty that we see in Britain, following Brexit and the General Elections. Investors need stability, and they don’t find that in the UK. France, on the other hand, is perhaps the most stable country in the world as of this moment, politically and economically.

Thanks to Macron, says Charles-Marie Jottras of Daniel Féau, “Foreigners all say the same thing: it’s the Macron effect. With the uncertainty of Brexit and the problems of Theresa May we have lots of French nationals living in the UK who want to buy properties in Paris.”

Peter Zemsky, professor of strategy at INSEAD, said in an interview with FRANCE 24, “France was coming from a very low point both in terms of policy and in terms of perception. Macron has shifted perceptions.”

Google CEO Sundar Pichai added in a blog post, “France has all the assets to succeed. It has top engineers, great entrepreneurs, one of the best education systems in the world, great infrastructure, and successful global companies.”  

Jean-Michel Petit, CEO of food startup VizEat, also exulted about what France has to offer: "What I'm seeing right now is that France is starting to look like what I saw in London 10 or 12 years ago. There's a lot of evolution. We're on a good path."   

The effect on the property market has been equally impressive. The new government has made many changes to the laws related to real estate, making them simpler to follow.

Against great opposition, Macron has ended wealth tax, and this move has done more to attract high net worth foreign investors to the property market in France than any other measure.

Macron was the star at the WEF in Davos, and almost every foreign investor had something good to say about him and the way he has transformed France.  “I was a long-term France bear. Now I’m a France bull,” Tidjane Thiam of Credit Suisse Group AG said.

As Macron himself said to a packed gathering of the world’s richest and most powerful individuals at Davos, “France is back. France is back at the core of Europe. Because we will never have any French success without success in Europe.”

We certainly agree with that!

 

 

 




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