Roche & Cie

The effects of the Brexit on French Real Estate

After 43 years of membership in the European Union, the British voted for their release, saying yes to Brexit Friday, June 24, 2016.

At the same time as stock markets, currencies and rates immediately fell Friday morning following this unprecedented event which is  difficult to measure the medium-term consequences.

Does this decision affect the real estate market ?

What do the professionals of the sector think ?

1- No major threat on the mortgage

At MEILLEURTAUX, credit broker, the tone is reassuring: “ I do not think we should fear anything on loans to individuals”, asserts Mael Bernier, spokesperson of the company. “The European Central Bank has, in part, calmed the markets with a new line  refinancing banks at negative rates last week and massively injecting liquidity.”One point on which the economist Veronique Riches Flores adds “The rate will not increase suddenly, by cons, the financial environment will deteriorate and we know that for the banking sector, a healthy economic environment is essential.”

2. The property prices in Paris & London

For Bernard CADEAU , prices are not going down mechanically, but Veronique Riches Flores believes in mechanical fall for prices in London; she says: “It is clear that UK prices will fall sharply … There are many foreign investors who appreciate the kingdom because it is for them the way to get a toe in Europe but not the foot. with the release of the country, it becomes unnecessary for them to stay there, at least, as the future will not be more clear.

It will be the same in major French cities such as Paris which saw a large number of British or  territories frequented by British customers under a second home.

To the question, “Can the Brexit have a negative impact on the French property market?“.

The president of the National Association of Realtors (FNAIM) meets a “Yes“, filled with sadness. “It is difficult to say otherwise. This vote provides for the withdrawal, excluding the withdrawal still has a detrimental impact on the economy. If the pound continues to fall, we fear an exodus of French British to the  UK because they will not have the means to stay in France.

Among the most affected segments, that of second homes may experience difficulties: “Potential buyers will remain pending,” he supposes.

An analysis shared by Bernard CADEAU. “If the pound fell again, which is not safe, the British customers will desert their usual” spots “, such as the Périgord, Normandy, and Limousin They will wait before buying“. Uncomfortable situation for these new regions