Continuing its eight year reign as the most visited country in the world, France yet again claimed the top spot in the annual survey by the UN World Tourism Organization with 78.95 million visitors. Paris was the most visited city in France.

The top four most visited countries in the world in 2010 were:

1. France
2. United States
3. China
4. Spain

• The French mortgage market is the third largest in the European Union after the United Kingdom and Germany. While the mortgage market in the UK and Spain suffered significantly during the fina ncial crisis, the French mortgage market has remained strong, with limited defaulting. Due to a strict upfront financial analysis for each dossier, French banks have succeeded for the most part in lending what borrowers are able to repay. This has created a great deal of stability for the French real estate market.
• Approximately 80% of properties in France are purchased with mortgage financing.
• Mortgage rates in France were at their lowest point since World War II in 2010; in the first quarter of 2011, rates remain at levels lower than historical averages. With interest rates at historical lows in 2010, there was both a greater demand and supply of loans for French real estate purchases.
• According to the European Mortgage Federation (EMF), in France, new lending increased by 38.5% from a year earlier.

• French property values increased sharply in 2010 and have continued the upward trend through the beginning of 2011. The Ile-de-France region has seen the most significant increases, though the rest of France has too seen property values increasing. The rising values in 2010 were more consistent across old homes than across old apartments, though both property types increased in value.
• The French real estate market is returning in strength to the volumes of the 2000 – 2007 period, with nearly 800,000 transactions in 2010.
• The first half of 2011 is anticipated to be busier than the second half of the year due to rising interest rates, next year’s presidential elections, and proposed inheritance tax reforms.
• French properties in the historical districts of major cities in France are expected to increase in value by 10% or more in 2011.
• The real estate market overall, while expected to continue to rise in value, will not be as explosive as in 2010, with more moderate price increases already observed in the first quarter of 2011.
 

Who and what exactly is a notaire?

As you’re looking into buying a property in France, one of the most crucial people with whom you will interact throughout the buying process is the notaire. You may be wondering who the notaire is and what his or her role may be in the process.

The notaire is a legal professional with duties relating to law governing: family, real estate, inheritance, business, and local authorities. Held responsible for the content, composition, validity and accuracy of the contracts, the notaire is integral to the entire transfer of ownership for French property. The amount paid to the notaire when purchasing existing real estate (as opposed to new build) is generally about 7% of the purchase price of the property if you are purchasing with a mortgage. It’s approximately 5% of the purchase price if you are a cash buyer. This sum includes the notaires fees, duties paid to the national and local French government, and the cost of locating and obtaining necessary documentation.

A notaire composes the deed for the transfer of property and guarantees the enforceability of the contract. The notaire also assists in valuation of the property, verifying the seller’s title of property, ensures that the legally required property checks are carried out, and is meant to facilitate the procedure overall.

For more information, visit www.notaires.fr

Excerpts from the press interview with Jean-Claude Trichet, President of the ECB & Vítor Constâncio, Vice-President of the ECB - 3 February 2011

• Based on its regular economic and monetary analyses, the Governing Council confirmed that the current key ECB interest rates still remain appropriate. It therefore decided to leave them unchanged. Our monetary analysis indicates that inflationary pressures over the medium to long term should remain contained. Inflation expectations remain firmly anchored in line with our aim of keeping inflation rates below, but close to, 2% over the medium term.

• Overall, we expect price stability to be maintained over the medium term, and the current monetary policy stance remains accommodative.

• Turning to fiscal policies, it is now essential that all governments fully implement their fiscal consolidation plans in 2011. Where necessary, additional corrective measures must be implemented swiftly to ensure progress in achieving fiscal sustainability.  Experience shows that expenditure restraint is an important step towards achieving and maintaining fiscal soundness, notably when enshrined in binding domestic policy rules.

• Substantial and far-reaching structural reforms, complementing fiscal adjustment, should be urgently implemented to improve the prospects for higher sustainable growth and employment. Major reforms are particularly necessary in those countries that have experienced a loss of competitiveness in the past or that are suffering from high fiscal and external deficits. Sound balance sheets, effective risk management and transparent, robust business models remain key to strengthening banks’ resilience to shocks and to ensuring adequate access to finance, thereby laying the foundations for sustainable growth and financial stability.

Source  : www.ecb.int