Investment Growth France
France continues to show great potential as a property investment market. Below you will gain an insight into the main growth factors affecting investment property in France.
France Investment Growth
France is already well established as a property investment location and proven experience shows investors that they will receive stable and reliable returns on carefully chosen property in France. Capital growth currently stands at around 10% per annum. While this figure is lower than in many of the riskier new emerging markets, France property offers stable growth and a safe, tried and tested marketplace in which to invest.
With ever increasing communications and cheap direct flights available through many budget airlines from all over Europe and the rest of the world, France is easily accessed and rightly so as it is currently the World’s top tourist destination. This creates an environment ripe for buy-to-let investment property in France’s top tourist destinations. The number of smaller French airports also welcoming international flights has increased over the years, in turn, opening up several lesser discovered areas that have developed into new hotspots. According to Assetz, the area of Languedoc-Pyrenees in southern France is due for growth due to international flights arriving at Perpignan and Montpellier airports as well as to Salvaza and Nimes-Garonne airports.
Capital Growth Predictions
Growth in France is famed as a solid and reliable bet. It is clear that, as in many countries, the highest returns can often be found in city property, particularly in Paris. Meanwhile, carefully selected property in tourist resorts continues to offer healthy returns. Investors are now looking for new places within France in which to capitalize on mini emerging markets, such as areas in and around Montpelier, Nice and along the Atlantic Coast, where improved accessibility and affordable prices are enticing tourists and investors to these areas, while indications suggest it is here that the greatest amount of capital growth from the tourist market will be experienced.
Rental Yield Predictions
France has a deeply embedded rental culture and large towns and cities offer high rental quality and investment opportunity. The vast majority of the French population rent their homes and this factor, along with a powerful tourist industry, makes for an ideal rental market. Due to popular demand, prices are increasing and investors are currently experiencing net rental yields of approximately 7%.
A favourable Euro rate has encouraged British and American purchasers to take advantage of the exchange rates and buy even more for their money. With the exception of Paris, the cost of living is generally lower than in many other EU countries and thanks to certain tax advantages offered to foreign investors in property, you can buy French property without limitations. The French government encourages foreign investment as a means to create jobs and stimulate further economic growth. A modern infrastructure, central location and stable political environment continue to attract investors seeking low risk opportunities within a solid economic structure.
Reasons Why France Is An Intelligent Property Investment Location
- Strong, historically stable property market
- Residential property growth rate of circa 10% p.a.
- Highly favourable investment environment with attractive tax advantages
- Within a short distance of the other main countries of Europe. 1 ½ hours flight from the UK
- Excellent, modern transportation infrastructure and budget airlines directly linking most
- French airports to Britain and the rest of Europe
- Ever increasing inward and overseas investment causing steady economic growth
- Varied climate, ideal for your chosen activity
- Net rental yields in the region of 7% - 10%
- Capital gains tax on property now halved to 16% to encourage foreign investment
- Strong tourist market as France is one of the World’s most visited country
- Many international mortgage providers lend on properties in France, making it easy to raise finance for a French purchase
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