A House in France

The housing market in France continues to attract more foreign buyers each year and to return them consistent and strong price growth potential and substantial short and long term rental opportunities that can yield a decent income.  Each year since 2002 the numbers of buyers purchasing property in France has consistently doubled and there are no signs that these numbers are slowing down so far in 2005.

The dream of owning a house in France is one that many share and one that many more are realising; this article offers an overview of the French property market today and the opportunities available for those seeking investment property in France and for those in search of a brand new home.

In 2004 the average house price increases across the entire country were in the region of 12%...those who had previously bought real estate in Languedoc Roussillion were lucky enough to see increases in the region of an incredible 28%...and while the average gains this year have been slightly steadier to date they are still in positive territory across the entire country with only Paris having witnessed anything of a slow down.  Therefore if you want to buy a house in France you are buying at a very positive time.

In terms of the French people, up to 45% of the population actually rent property which means two things, firstly rental property is highly in demand, secondly the rates achievable for long term contracts are not as impressive as those obtainable from holiday apartments and homes located in the most popular regions, towns and resorts in France.  Therefore you need to consider why you’re buying a house in France before you think about location and property type. 

For example, if you have a relatively small budget and you want to buy a house for a long term investment you could purchase something more affordable in a less touristy region and generate a solid but smaller long term income from the property and have made a strong long term capital growth investment.

On the other hand if you want to rent out your French investment property for high yields your best bet will be attracting a short term holiday market to the property from whom you can generate the highest weekly returns.  Such a property will need to be in a desirable ski or sun location and be well furnished and close to amenities and facilities.

If you’re thinking about living in France full time and therefore want to buy a house to live in - either full or part time - your buying decisions will be mainly based on the location you’ve chose and your budget.  You can often get far more for your money if you move slightly outside of larger towns and cities and if you purchase a property in need of renovation.  If you decide to take this route remember that you will likely need your own transport and if buying a run down property make sure you have complete structural surveys and proper searches conducted before you buy.

There are no restrictions on foreign buyers in France and property in France is seen as a great investment as mentioned, therefore demand is high and in some areas this has led to an explosion of new build developments.  These offer the property investor great short term price gain potential because by buying off plan a buyer secures at today’s prices, pays in instalments and can then sell on at a gain as soon as the property is completed.

As you can see there is plenty of opportunity in France for all types of buyer and investor and plenty of potential for profits from rental income and price growth increases.