Investors Could Turn to France after Spanish House Price Crash
By Howard Farmer

Potential investors are said to be turning their attentions to France after the Spanish property market saw the shares of developers collapse.

Every year Brits choose to buy holiday homes in Spain but now it looks like France may be a better bet. Spain has seen a massive explosion in building along all the Costas. It appears that saturation of the market has been the inevitable result. New developments are offering huge discounts to new buyers.

Brits hit by Spanish property market

According to the latest reports, hundreds of thousands of UK residents with homes in Spain have seen the value of their properties fall by as much as 65 per cent.

The worst hit areas are said to be recently bought property off plan where there is not enough demand.

French property market unlikely to crash

Things are looking up in France however, with a new president potentially hailing a new and positive era for the country's economy. The Sarkozy effect could have a big effect on the economy fuelling property price inflation. There is already talk about making mortgages tax deductible (capital and interest).

A price crash similar to the one in Spain is also said to be off the cards because of a few major differences within the two countries.

In France, issues such as unemployment, job insecurity and relatively tight borrowing restrictions has decreased the likelihood of a boom bust situation which Spain is currently experiencing. This year French property prices should remain stable but if Sarkozy's reforms are accepted, then prices could start to rise more quickly in a few years.

Howard Farmer
Europe Property -
Europe Property Portal
We have French property from 37,000 euros - stone houses, land and farms. Residential, vacation and investments property for sale across all of France. Investments: leaseback, buy to let and reversion property.

Article Source: http://EzineArticles.com/?expert=Howard_Farmer
http://EzineArticles.com/?Investors-Could-Turn-to-France-after-Spanish-House-Price-Crash&id=565336