Real estate sales are on the rise in France, thanks to Americans
Experts have recorded an unprecedented rush in the French market by U.S. citizens. In the country sales of real estate to Americans have increased by 37%. According to Bloomberg analysts, the key factor in higher activity was the strengthening of the dollar against the euro, as well as the availability of savings for U.S. buyers.
Estimating the dynamics of the correlation of currencies in the world market, we can clearly see how the dollar has been gradually strengthening its position compared with the euro since the beginning of the year. While in January the dollar was worth Euro 0.879, as of last month the exchange rate was 1 to 0.9317. For Americans, French real estate has become much more affordable, even despite the record level of inflation, which was recorded in European countries. Demand for housing from U.S. citizens has also been helped by a smooth recovery from the pandemic. In the two years since COVID-19, Americans have been able to accumulate quite large sums and were looking at different options for their investment. Restrictions due to the pandemic have made it much more difficult to purchase real estate in Europe. After their abolition at the beginning of this year, many foreign investors began to actively come to the real estate market in the EU, among them U.S. residents.
According to an analysis by Knight Frank, the greatest demand from Americans is in Paris, the southwestern part of the country, and the French Riviera. It should be noted that real estate in these regions has always been popular with buyers from other countries. This year, however, recorded a change in investor behavior. U.S. citizens showed keen interest in real estate in Cannes, Grimaud, Avignon, and others, which previously were not so popular. In previous years, Americans mostly bought properties in major European cities such as Barcelona and Rome. One of the conditions for buying real estate they noted was the developed life in the city – both business and cultural. This year, however, Americans prefer objects in resort areas of France and Italy.
As for the U.S. itself, the increase in real estate prices in the country amounted to about 11%. These dynamics have limited the ability to buy properties for many citizens. In addition, internal migration has intensified – people are moving from expensive states to cheaper ones, which include Texas and Idaho. However, despite the increase in the cost of housing, it is still lower than in France. For example, the average price per square meter in the United States is $4,540, while in France it is $6,338.
Overall, we can say that the global real estate market continues to grow. On average, over 12 months the cost of housing in 56 countries has increased by more than 10%.