France waits in anticipation for the forthcoming general election16 June 2017
France is gearing up for one of the biggest and perhaps most important presidential elections of the century. The elections thus far have been very close, with all three major candidates rating as favourite in the polls at one time or another, and while there were fears among the population that Marine Le Pen was leading in the polls, recent figures suggest that Macron will beat his right wing opponent. The election will take place over two rounds in April and May and it is thought that while Le Pen may win the first round, Macron is set to win overall.
While Le Pen has voiced desires to follow Britain's Brexit and leave the European Union, Macron is pledging to slash government spending by €60bn and cut a large number of public-sector jobs, as well as reduce some taxes and invest in green energy for the country. Director of French Private Finance, John Busby, relays that both Macron and strong contender Fillon have proposals regarding real estate to reduce or abolish the wealth tax which in turn would allow for many residents to return and create a more dynamic market.
So what does the election mean for the property industry in France?
"Many believe it will simply be business as usual in the markets as investment in France still remains strong with the prime property section of the market continuing to perform well. The rate of investment in the country is level with the sales recorded this time last year before the vote for Brexit happened.
The ultra low interest rates in France have caused an increase in transactions in the domestic and non-resident markets. These low rates look set to continue with possible small increases depending on the winning candidate and which reforms would be possible."
Overall, the feeling is that the election won't have a drastic effect on the property market and France will remain a strong and popular choice for investors both in the country and abroad.