French Investment Property Offers Positive Growth Potential

French Investment Property Continues to Offer Positive Price Growth PotentialBritish and Irish property investors who are witnessing a slowing down of their domestic housing markets don’t have to look too far afield for their next real estate venture.  Just across the water in France the housing market is continuing to see significant growth both in house prices and in rental demand and yield according to a recent report.

The property market in France has not been performing consistently however and a clever and cautious approach should be applied when seeking out your next French investment property opportunity.

The report from a group of French real estate agents revealed that the volatility in French price increases has ranged from just over 2% to in excess of 25% in the year to date with average gains achievable in the past six months set at just under 10%.  These figures highlight clearly both the potential for significant gains and the potential for a slowing down in certain sectors and geographical regions, so investors are urged to research any market carefully before making investment decisions.

The property market in Paris for example offers lower than country average price growth potential but strong rental occupancy levels and growing rental yield potential, and property in Northern France - particularly in the British hotspots of Brittany and Normandy - has seen a significant slow down in price growth potential.  But elsewhere in France a dearth of property stocks in popular regions has led to higher than average price increases and rental yields, and has also resulted in an abundance of developers starting brand new developments that have proved popular off-plan with local and foreign buyers.

Those seeking the highest achievable price growth potential in the short to medium term are looking directly at the off-plan opportunities available and also at those offering leaseback.  Leaseback is a relatively new phenomenon in France and it is basically where a guaranteed rental yield is given for a fixed period to property investors who commit to purchase at the off-plan stage.

Industry experts agree that because France has been enjoying a period of low interest rates its property market has managed to remain buoyant while markets in the likes of Britain and now Ireland have been slowing down and moving sluggishly.  Furthermore it is said that French domestic lenders have eased their lending criteria and this has led to more demand from local buyers.  When you add to these facts the point that the desirability of France is universal and every year thousands of foreign buyers flock to France to buy French investment properties, holiday homes, buy to let apartments and retirement properties you can really see how France has managed to sustain its property market while those in the UK and Ireland and also in France’s neighbouring Germany have slowed and suffered.

Therefore if you want to make money from property investment but the thought of entering an emerging market in India, Estonia or Poland is a little too left field it’s good to know that you don’t have to head too far afield to tap into strong growth opportunities and excellent, even guaranteed, rental yield potential.

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