A Guide to Investment Property France
From the action and attractions of Paris to the sun-kissed beaches of the Mediterranean and the snowy peaks of the Alps, France appeals to people from all over the world for a whole host of reasons. As its historically strong tourism industry continues to thrive and grow, investment confidence in France remains high.
France’s stable government, easy accessibility and strong economy also work together to bolster investor confidence in the country. We at Nubricks.com cite the following 10 reasons as major factors driving the French property market forward :-
1) France’s Long-established and Ever-Growing Tourism Industry Generates Maximum Investor Confidence
France’s standing on the worldwide tourism front is incredibly strong. Boasting a huge 5.2% of the world’s market share, France even beats Spain with regard to its tourism industry. The World Travel & Tourism Council estimates the 2007 economic impact of French tourism will fall in around EUR 275.5 billion. With an already strong and continually growing tourism industry, confidence in French property investments is very high. Buyers in France often adopt a buy-to-let or resale strategy that targets to holidaymakers and/or incoming expats.
2) The Incredible Geography, Climate Diversity and Sightseeing Combine to Make Property in France of Maximum Attraction
France is one of Europe’s largest countries in landmass. Its geography is diverse and includes frontage on both the North Sea and the Mediterranean Sea. From its lowlands and rolling countryside to its Alpine peaks, France’s geography tends to appeal to a number of different kinds of holidaymakers and buyers. Add to this the incredible climate, which ranges from very continental to quite Mediterranean, and the natural draws here are evident. The historic sites, incredible museums, winemaking regions and active, bustling cities also appeal to holidaymakers and expats. France’s unique geography, weather and many attractions, from the French Riviera to the Eiffel Tower, draw in holidaymakers year round. This bodes well for investors with a variety of different strategies and is helping to keep the French property market quite strong.
3) France’s Stable Government Inspires Long-term Investor Commitment
France’s republican government has been in place for a very long time. Its overall stability, relatively calm political climate and standing in the worldwide community inspires confidence on the part of investors. The atmosphere also makes the country very attractive to holidaymakers, retirees and expatriates, which of course bolsters investment potential.
4) France’s Strong Involvement in Organisations Like the European Union Bodes Well for Investors
As a founding member of the European Union and an active participant in organisations such as the United Nations, NATO and the G8, France’s reputation on the international front is very strong indeed. This bodes well for investors who desire stable and respected countries within which to place their money. France is well supported by EU member nations and its status within the EU makes travel, relocation and purchase of property quite easy for most Europeans.
5) The French Use of the Euro Makes Investing in Real Estate Simple
France’s use of the euro in its economy makes handling financial transactions quite easy for many Europeans. Whilst Brits still must deal with exchange rates, the overall difficultly level is greatly reduced thanks to the use of the euro. This is great for investors who prefer not to fiddle with continuous exchange rate ups and downs when factoring profitability and yields.
6) The Growing Attraction of the French Countryside and Sustained Interest in its Cities Support Several Investment Strategies
Whilst buying property in Paris is cost prohibitive for many, the countryside offers lots of potential. The attraction of the quaint lifestyle and lower prices is starting to reel in a number of buyers from the UK and other locales. The Languedoc-Roussillon region is particularly hot right now, but anywhere where decent infrastructure is in place but country living is not affected is also of interest to buyers and renters alike. The trend toward the more affordable countryside is very good news for investors who are already in place, but the potential is still high for investors with buy-to-let and resale strategies. Some buyers are even looking at permanent residences that they can use for bed and breakfast income potential.
7) The Ease of Financing and Navigating the Purchase Process Makes France Attractive for Property Buyers and Investors
With its well-established property market and strong international ties, France offers a straightforward buying process for investors. Buyers will find mortgage financing is easy to obtain for those with good credit and that taxes are typically reasonable considering the popularity of the market. Whilst an interpreter or local representation might be needed to bridge the language barrier when buying, the process is streamlined and easy to understand. The simplicity involved in buying property in France makes it very attractive to investors, holiday-home buyers and would be retirees and expats.
8) France’s Large and Growing Expatriate Community Makes it Welcoming for Investors, Holidaymakers and Retirees and Provides Investors with an Exit Strategy
Whilst the exact number of Brits living in France is a little sketchy, ranging between 200,000 and 600,000 depending on which statistics you prefer to believe, there is no denying the incredibly strong draw this country has for expatriates. Investors in France will find a large community of British, American, Australian and even Asia residents living in the major cities and even in the countryside. As the quiet pace of life the countryside offers begins to appeal to Brits more and more, growth in the expat and retiree community is expected to increase. This bodes very well for property investors looking at buy-to-let and resale potential.
9) France’s Large and Stable Economy Makes it Attractive to Many Property Investors
France enjoys one of the largest economies in all of Europe. With a GDP of EUR 1.7 trillion and a growth rate of 2%, the economy is more than holding its own in the face of worldwide economic downturns. The country enjoys a very low inflation rate of under 2% and has very strong trading partners within Europe and the Americas. France’s economy is driven by tourism, the aerospace industry, pharmaceuticals and industry machinery, among other things. The stable and rather large French economy appeals to investors that prefer strong environments in which to place their money.
10) Low-Cost, Easy Access to France is Good for Holidaymakers and Expats, but Even Better for Investors
Low-cost airfare and high-speed rail travel between the UK and France is making this destination even more attractive to investors, holidaymakers and expats. The recent revamping of the Eurostar rail system provides 17 trains daily between Paris and London alone. Add to this the fact that direct access to most major French cities is also available from just about any big European airport and travel here is easy and affordable. This is great for investors who want to check on their properties and even better for buyers who want to cater to holidaymakers or resell to euro-commuters.
France’s alluring cities, quaint countryside and incredible sights make it a very attractive location for holidaymakers, expats and investors alike. The prominence of France as an investment hotspot and retirement location is virtually unchallenged and it is likely to remain so.
