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Boom in the French Property Market due to the Macron Effect 16-Apr-2018

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Are you planning to sell your property in France online?

France is the most exciting country to live in Europe right now and that’s mainly because of their new President Emmanuel Macron. Macron has been making all the right moves in France since he was elected to power in 2017.

There is a lot of talk about the “Macron Effect” and about the improved business sentiment in France. 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.”

"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," Jean-Michel Petit, CEO of food start-up VizEat, said.

Even U.S. businesses are very bullish about France. Robert Vassoyan, head of AmCham France, and Bain’s Marc-Andre Kamel said in a statement: “The 2017 survey underline the existence of a ‘Macron effect’ and the very positive signal sent to companies by the new French president’s reforms.”

There is a new wave of economic optimism in France, which is very exciting to see. Macron has certainly helped boost business sentiment by trying to push through labour reforms and tax breaks. He says that it is his goal to “unleash the animal spirits” which fuels corporate investments.

“The French are becoming more optimistic than I’ve seen in 30 years,” says Donald O’Riain, an investor and a businessman. “Typically they tend to see the problems more. But the balance has shifted.”

We see the same in the French property market as well. Indeed, there is a Macron Effect in the property market in France. We have been witness to a new wave of optimism among international investors who want to buy property in France.

What’s happening here is unprecedented – and it feels pretty much like the London property market when it was at its very best, in 2015, just before we had all the uncertainty over Brexit.

Roddy Aris of Knight Frank, a leading real estate expert, says, “He’s brought in this gulp of oxygen and has changed overnight the outlook of the economy. We’re seeing transactions in Paris that we haven’t seen in five years.”

For sure, Macron has his critics in France. Some people even call him the “president of the rich”, because of his pro-business policies. But there is no question that France has been doing very well since he came to power.

Home prices in Paris alone have gone up by 12% over the last 12 months. This is at a time when property prices in London have witnessed a slight contraction.

What property investors look for, more than anything, is stability. France is seen as a stable country in a time of general political uncertainty, in the U.S., UK and even in Germany. That’s why it is right now the most exciting country in the world.