Prestige Property: Why buy a historic French home

Dan Newton shares his views on the prestige property market in France – and why history is key for him…

Before we get into any attempts at a market analysis, let’s define what the ‘prestige’ market is. In an era where even a spacious new-build in the right area is priced well over €1m, what does prestige equate to now? To start with, for me, expensive houses in expensive areas don’t class a property as prestigious. Personally, I think there are three distinct markets englobed under the prestige market title. To simplify things, I’ll name these: luxury, prosperity and heritage.

What I would class as ‘luxury’ is all those properties you see in the lifestyle magazines and on the rich and famous TV programmes; the properties that are priced in multiples of a million and where anything in the price after the first comma is a mere detail. Whether that be a prestigious villa overlooking St-Tropez or Nice, or a spacious penthouse near the Champs Elysée in Paris. Then you have the prosperity market, which is the most active of them all, comprising properties priced between €1m and €5m, whether this be a spacious flat at the right end of Paris or a 15-bedroom château sitting in 20 acres of grounds in the Loire Valley.

And to finish, there is the heritage market, as I call it. This is for the more passionate buyers, the sort of people who will buy a property with their heart, with a wish to see it grow and flourish; the sort who choose a property from the inspiration it gives them, whether this be a Renaissance château that has seen better days in the Mayenne, or a fortified manor house in the Dordogne that will need several hundreds of thousands invested into it to bring it back to the glory of yesteryear. Everyone knows about the luxury market, but few are concerned. It’s for Hollywood stars, multi-millionaires and Arabian sheikhs who fancy a bolthole in France. You’ve probably heard of Johnny Depp’s hamlet, which is back on the market for the modest sum of €45m, or Brad Pitt and Angelina Jolie’s Château Merval, bought for €25m. And not forgetting George Clooney’s ‘renovation project’, bought for just under €8m. This market is dealt with behind closed doors, deals are done without a property being advertised publicly, and we only hear about it once it hits the popular press. According to Laurent Demeure, president of one of the main luxury agencies in France, “the top end of the market is very buoyant, and this is a great time to invest”. It remains to see whether that is true, due to the fact that the market is so secret it is hard to speculate.

As for the ‘prosperity’ market, this is in a bit of an unusual situation in France at the moment. We are talking about châteaux and manor homes or large historical flats in flamboyant areas, all in the price bracket of €1-5m. There are three main buyer groups here: the international businessman who purchases a property as a pied-à-terre to use when travelling for business or for longer stays on family holidays, but at the same time as an investment. This market is fairly constant in urban areas, but less so in rural ones. Then there are the French buyers, who are either owners of large properties in towns who are escaping to the countryside, or those who are planning to create some sort of hospitality business out of the place. Unfortunately, due to the French banks clamping down on loans and hospitality businesses suffering from the cost of living, this buyer group is currently fairly non-existant.

Then there are the expats, who have sold up lock, stock and barrel in their home country and are looking to settle in France, frequently for their retirement. Often they’re lucky enough that a nice house in their place of origin is worth the equivalent of a château in France, and they’re happy to own a piece of French history.

When I say this market is in an unusual situation, the reference for châteaux and country homes for estate agencies and financial organisations is the domestic French market. So, for them the signs are that it is slowing, and I would say prices are dropping. There is more negotiation done these days. But at the same time, purchases made by foreign buyers are on the increase, and I would go as far as saying that at the moment, it’s a good time to buy.

Following on from that, we have the ‘heritage’ market, which I find fascinating. This is where the purchaser falls in love with a forgotten part of French history and dreams of bringing it back to life. This market corresponds more to rural areas than urban ones for obvious reasons, but it can exist in some of the smaller historical towns too. Everyone has seen the Strawbridges’ Escape to the château TV series, and it has even been released in France now. This started an influx of château-hunters from the UK; those who wanted to do the same as Dick and Angel, and those who felt they could do a lot better. The Mayenne was very popular, mainly due to the ‘cheap’ historical properties available there. But this fervour has spread all over France, and not just with British buyers, we often see American, Canadians, Dutch and Belgians buying these properties now. If you are looking for this sort of property, I would definitely advise doing so sooner rather than later, as old rural properties for renovation are getting rarer and rarer, and although there is still some choice in certain more affordable areas of France, in other more popular regions such as Brittany, if you are looking for a manor or château in any condition, you won’t find anything under €1m. One problem in France is that there are the day-to-day estate agencies that deal in ‘normal’ properties and don’t have the marketing means for more historical or prestigious properties; and then there are the ‘luxury’ agencies that only deal in properties worth several millions. In some cases, this leaves a gap in the market, from around €500,000 up to €2m.

For those of you who are looking for a lovely prestigious property ready to move into, say from €1m to €5m, it is worth comparing similar properties for sale in the same region, as there is a lot of disparity in prices. It is certainly a good time for the cash buyer; not so easy for those needing finance. For the lesser mortals at the lower end of the market, I would still say now is the time to buy, purely because these historical buildings that are yearning to be reborn are getting harder and harder to find, and hence are increasing in price. Even if you purchase now then sit on it for a few years – get them while stock lasts, so to speak!

Dan Newton is the director and co-founder of Agence Newton

Tel: 0033 (00222 44 40 80)

agencenewton.com

Looking for more like this?

French Property News is the go-to title for anyone considering a French property purchase, either now or in the future. Packed full of expert advice from property professionals including estate agents, lawyers and tax advisors, it is the ultimate househunter’s guide to the French property market.