GCC Investment In French Riviera Properties Up 30%
Falling prices and steady fixed interest rates have encouraged regional investment
Gulf Cooperation Council (GCC) investors in the French Riviera have increased 30% in the past year, encouraged by low prices and fixed interest rates, according to a luxury real estate investment firm.
Michael Zingraf Real Estate Christie’s, which operates in the south west of France, saw GCC residents comprise 7%of its clientele at the start of Y 2016, a marked increase on previous years, a growth he believes has been driven by favorable market conditions for investment into the region.
He said: “The current fiscal environment in France opens up a wealth of opportunities for non-residents to invest, shaped in particular by the euro’s exchange rate, low bank interest rates and changes to tax treatment on capital gains underway.”
Real estate prices in France have dropped by between 20-25% in recent months, while bank interest rates have held steady at 1.5%.
FDI (foreign direct investment) in France US$4.95-Bin February this year after reaching a 4-year high of US$11.4-B in January, and real estate companies are looking to capitalize on the heightened interest from oversees investors, particularly from the wealthy GCC countries.