Property Investment in France: What Type of Investment?

Investing in France Is Common Sense – Pure and Simple.

Year after year, the Hexagon continues to be the most visited country in the world, with Paris attracting more tourists than any other destination in Europe. Savvy Britons have already cornered the market, accounting for an impressive 45% of foreign buyers.

The numbers don’t lie: it is a no-brainer for keen investors.

According to l’INSEE, the National Institute of Statistics & Economic Studies sales volume went up 29% in 2016. However prices are far from homogeneous and trends vary widely between the likes of Paris, sought-after metropolises and rural areas.

Before anything else, it is key to determine whether you are looking for an investment, that is buy-to-let, or a full-time or second home. If you are after a cold hard investment, you should focus your search on bustling urban cities, like Paris, Bordeaux, Nice, Toulouse or Lyon, to maximise rental income. Around 40% of French people currently rent their homes, so this is an attractive proposition.

The general rule is that rental income is inversely proportional to the buying price. If you choose to buy in an expensive area like Paris or Nice your rent will generate less rental income than in a cheaper and isolated area like Limoges or the Creuse. However, your asset will be worth far more, retain its value and your investment will be far more secure.

“Investing ‘far from the madding crowd’ has always been the preferred option for buyers on a lower budget wanting to buy the French lifestyle at an affordable price,” explains Annick Dauchy, FrenchEntrée Property Business Development Manager. “But be aware that from an investment point of view that is not the best option and when it comes to selling on then there is a restricted market for these areas.

“Generally speaking though, the French property market is one of the most regulated in the world so foreign buyers should feel confident in investing in France. There is good news for investors looking at France with specialists suggesting that long-term trend in property prices in France is upwards. With interest rates due to rise, conditions are excellent at the moment for buyers.”