Real Estate & Property Investment News in France from Propertyshowrooms.com

Overseas investors 'looking for deals in up-and-coming Paris districts'

Wed, 8 Feb 2012 00:00:00 GMT

International property investors are increasingly targeting up-and-coming districts in Paris in order to find the best opportunities.

This is according to Thomas Elisian of Paris Attitude Vente, who told the Telegraph overseas buyers are "increasingly willing to look at 'newer' neighbourhoods if they can get an advantageous deal".

Among the districts that may interest investors looking for a French property are the tenth, 17th and 15th arrondissements.

Managing director of Sifex Sarah Francis told the newspaper that real estate assets in the tenth arrondissement experienced capital appreciation of ten per cent over the course of 2011.

The Canal St Martin and Boulevard Magenta are just two areas that have been singled out as sought-after addresses in the district.

It seems it is not only residential property that is attracting investors to Paris, with a recent Jones Lang LaSalle report highlighting the city's popularity for commercial real estate deals.

The French capital was the third most-active market for global property deals in the final quarter of 2011, with only London and New York experiencing higher transaction volumes.

Rising number of homes for sale on the French Riviera

Thu, 2 Feb 2012 00:00:00 GMT

There has been a significant increase in the number of properties being put on the market in the French Riviera in the first month of this year.

EstateNetFrance revealed nearly 16 per cent more homes were for sale in January, compared to December.

This also represents a 12 per cent rise in comparison to the same month in 2010.

According to the organisation, many sellers were waiting until the new tax regulations relating to property in France came into force at the start of January to put their houses up for sale.

In addition, assets that had previously been taken off the market have been listed again, increasing the pool of available real estate.

The company pointed out it is a "buyer's market" in France, even in the luxury sector on the French Riviera, where the average price of a high-end home has fallen below €2 million (£1.7 million) for the first time.

Last month, EstateNetFrance asserted buyers still view property on the French Riviera as "a secure, long-term investment", which is why there was substantial growth in the number of real estate transactions recorded in the area during 2011.

Rising investment in French commercial property

Thu, 19 Jan 2012 00:00:00 GMT

During the final three months of 2011, France recorded its highest commercial property transaction volume since the third quarter of 2007.

Figures released by CB Richard Ellis (CBRE) revealed that investment in French commercial real estate climbed by 65 per cent between the third and fourth quarters of last year.

In total, €6.5 billion (£5.4 billion) was transacted between October and December 2011, making it the second most popular market in Europe after the UK.

The CBRE report stated: "Investment activity in France was heavily biased towards the Paris office sector and included large portfolio and single-asset deals."

According to the Savills European Office Markets bulletin released in autumn last year, yields for Parisian offices stood at just over five per cent in the third quarter of 2011.

The organisation noted that both demand and rents were on an upward trend at this time, while the supply of such real estate assets in the French capital was falling.

Head of Europe, the Middle East and Africa capital markets at CBRE Jonathan Hull stated that data from the final quarter indicates France, along with the UK, Germany and the Nordic nations, "are key to core strategies" among investors.

Luxury home prices fall in French Riviera

Wed, 18 Jan 2012 00:00:00 GMT

The value of luxury properties in the French Riviera fell in 2011, according to one estate agency specialising in the region.

EstateNetFrance revealed that the average price of real estate in the French Riviera and Monaco dropped by 5.06 per cent over the past 12 months, however, the rate of sales increased.

The agency recorded a 16.29 per cent jump in the number of transactions completed during 2011, with the firm noting the region is considered a "secure, long-term investment", which has helped drive interest in property here.

On average, a luxury home in the French Riviera or Monaco now costs €2,117,349 (£1,754,580), with the majority of high-end real estate assets on the market in the €1 million to €3 million price range.

According to the most recent Global House Price Index published by Knight Frank, France is one of the European nations to see the value of its residential property rise in 2011.

In the firm's latest table, the country saw real estate prices climb by 6.7 per cent between the third quarter of 2011 and the same period in 2010.

Taking legal advice 'sensible' before buying French property

Tue, 6 Dec 2011 00:00:00 GMT

Anyone considering purchasing property in France should seek out legal advice from an independent professional with knowledge of the country's market, it has been advised.

This is according to managing director at Leapfrog-properties Niclas Dowlatshahi, who stressed that the differences between French and British laws make this a prudent step.

"If possible, this should be a French notaire (an impartial notary), who is willing to take the time to explain things to you," he stated.

Mr Dowlatshahi added that this is preferable to a UK-based solicitor, as a notaire will have a more in-depth knowledge of regulations regarding real estate transactions in France - and it is this kind of professional who will complete the deal on your behalf.

Recent changes to tax laws in the country relating to wealth and property ownership also need to be considered and understood, he pointed out.

Last month, Tim Harvey from Offshoreonline.org - specialists in European mortgages - highlighted the good availability of home loans for 85 per cent of the real estate asset's value.

He added that it is easier to arrange a mortgage with a high loan-to-value in France than it is in the UK at present.

'Positive future' for French property market

Mon, 5 Dec 2011 00:00:00 GMT

One expert in the French real estate sector has stressed that the country's property market can have an "extremely healthy mid to long-term future".

Trevor Leggett, of Leggett Immobilier, explained that the best way to achieve this is to be cautious in the short term and adopt a "sensible view on pricing".

He stressed that both agents and owners in the nation need to be "realistic with their expectations and valuations".

Should this happen, Mr Leggett anticipates that the French property sector will remain one of the most attractive and healthy in Europe.

"In troubled times owners and investors seek 'safe havens' and they simply don't come more secure or enjoyable than France," he added.

The perception of France as a brand outside the country appears to be particularly strong at present, with a recent FutureBrand survey placing it among the top nations in the world in this regard.

It performed particularly well in terms of its heritage and culture, while it was 13th in the list of countries people would most like to live in.

France's image 'helps attract property investors'

Fri, 2 Dec 2011 00:00:00 GMT

France has been named as one of the top ten national brands in the world by the recent FutureBrand Country Brand Index - and one real estate expert believes that the image it projects is one of the reasons why investors are attracted to the destination.

Commenting on France's ninth position in the survey - which covers 113 countries - business development manager of Terresens Charlie Williams noted that despite the ongoing economic crisis in the eurozone, France still has "a timeless appeal".

"It has an unbeatable reputation and with a solid country brand, people will always stop by and visit, making this a reliable bet for property investors," he added.

According to the FutureBrand study, France was ranked at number 13 in the would most like to live in category.

However, it came in second and third place respectively for food and attractions, while it also performed well in the history and art and culture sections.

Its strong perception among tourists could therefore make French property a good investment for anyone who wants to target the holiday rentals market.

French retail properties "attractive to investors"

Tue, 22 Nov 2011 00:00:00 GMT

The retail property market in France has been targeted by overseas investors during the third quarter of 2011, a new report shows.

According to BNP Paribas Real Estate, fashion brands have led the way in the take-up of space on French high streets, with the luxury sector putting in a particularly strong performance.

Rents on the Avenue des Champs-Elysees are currently the highest of Europe's prime shopping locations, standing at €11,000 (£9,401) per sq m per year.

This outstrips London's Oxford Street by over €2,000, which was the second most expensive retail location, the research found.

"Retail has been particularly attractive to investors in France thanks to the resilience of household consumption," the study noted.

Last month, a Jones Lang LaSalle survey into the state of the European retail real estate investment market revealed that the amount of money ploughed into the sector increased during the third quarter of 2011, compared to the previous three-month period.

French property market 'has potential'

Fri, 18 Nov 2011 00:00:00 GMT

Investors looking for a property abroad may want to consider France, one expert has claimed.

Tim Harvey, from euro mortgage specialists Offshoreonline.org, explained that it is currently easier to arrange a high loan-to-value mortgage in France than it is in the UK.

He added that mortgages for up to 85 per cent of a French property's sale price are "widely available", with rates of around 3.45 per cent.

Mr Harvey also made some suggestions about where to buy real estate in the country.

"High -quality areas such as the Cote d'Azur and towns such as Nice and Cannes will always have a special appeal as second homes, but also as rental propositions, as the area has such strong leisure and business traditions," he stated.

Another part of the country that may attract investors due to its robust tourism industry is the French Alps.

The Savills Alpine Property Market Spotlight highlighted the resorts of Val d'Isere, Courcheval and Megeve as being among the most expensive in the region.

Opportunities for investment in French Alpine property

Fri, 28 Oct 2011 00:00:00 GMT

Investors looking for property in popular ski areas may want to turn their attention to the French region of the Alps.

The Alpine Property Market Spotlight report from Savills highlighted some of the top locations in Europe in which to invest in real estate for the winter season.

According to the firm, the country's strong tourism market and high demand for rental properties from visitors means "revenue streams provide more compelling investment opportunities, as well as lifestyle choices".

In fact, the researchers discovered that of those who purchase real estate in the Alps, 62 per cent do so for both investment and lifestyle reasons.

The most expensive locations for properties in the French Alps are Val d'Isere, Courcheval and Megeve, while destinations such as La Plagne and Morzine may be more affordable.

Last month, the Knight Frank Ski Index highlighted the growth in summer tourism in some regions of the Alps as a factor that has helped boost rental incomes for property owners in the region. Head of residential research at the organisation Liam Bailey noted that the French resorts have established themselves in this niche market and offer far more than just skiing breaks.

More Brits turn to French property

Thu, 20 Oct 2011 00:00:00 GMT

Research has shown that more Brits bought properties in France during 2010 than in the previous year.

According to the study published by BNP Paribas, the number of purchases of dwellings made by British buyers last year was 23 per cent higher than in 2009.

Meanwhile, investors from the UK accounted for eleven per cent of all foreign property transactions in France, making them the second-largest group to plough their money into the country after the Portuguese.

In terms of the target locations for British buyers, south-west Aquitaine province proved the most popular - including Bordeaux and the Basque Coast - while the Rhones-Alps region and Provence Alps Cote de Azur also attracted attention from UK-based investors, the report revealed.

However, concerns have been raised recently about the introduction of a new capital gains tax regime, which will impact upon second homeowners in France.

Some industry experts have predicted that more properties will be placed on the market over the coming months as owners try to avoid paying additional duty when the tax comes into force in February next year.

Amendment to French CGT 'may benefit second homeowners'

Tue, 18 Oct 2011 00:00:00 GMT

There has been much talk in recent weeks about the effect the changes to the French capital gains tax (CGT) regime will have on the property market.

Some estate agents in the country have predicted a rise in the number of foreign owners selling their assets in the coming months in a bid to beat the introduction of the new tax rates in February next year.

However, the French parliament has now included an amendment to the bill which could benefit owners of properties in France, chief executive of Leggett Immobilier Trevor Leggett explained.

The new addition to the regulations could see the levy waived if the home has been owned for five years or longer and the investor has not had a principal residence in France for at least two years.

He stated: "The amendment is primarily aimed at providing relief to French expats, but could benefit hundreds, if not thousands, of UK owners of French houses who had been reluctant to put their properties on the market."

However, Mr Leggett cautioned that the exact nature of the changes may not yet have been set in stone and advised investors to keep an eye out for new developments.

French Alps property 'a target for Swiss buyers'

Mon, 17 Oct 2011 00:00:00 GMT

Investors from Switzerland are becoming increasingly interested in purchasing real estate in the French Alps, one estate agency in the region has noted.

According to Alpine-Property, the relative strength of the Swiss franc against the euro makes buying a property in France an attractive option for those living over the border in Switzerland.

"The buyers we speak to tell us that they can now get a lot more for their money by turning to resorts like Chamonix or Morzine rather than their Swiss equivalents," Gareth Jeffries, a representative from the firm, explained.

Due to this surge in interest, the agency revealed that property prices in many of these locations are now higher than they were when the market reached a peak four years ago.

Last month, the Knight Frank Ski Index showed that many of the French resorts have seen real estate values rise over the year to June 2011.

Among the best-performing French ski destinations in terms of sales activity are Megeve, Courcheval and Val d'Isere, the organisation stated.

New tax 'encouraging French property owners to sell'

Wed, 12 Oct 2011 00:00:00 GMT

The new capital gains tax regime due to come into force in France in February 2012 has resulted in more second home owners putting their properties up for sale, it has been claimed.

Fred Schiff, from the international team at Knight Frank, explained that the changes - which will see both domestic and overseas buyers pay capital gains tax for the first 30 years of ownership, as opposed to the first 15 years as things currently stand - are "unwelcome".

He stressed that this is a particularly difficult burden for those who have owned a property in France for between 15 and 30 years, as they will now have to start paying the new tax.

"Consequently, many have become more motivated to sell, which has been reflected in the significant number of price reductions," Mr Schiff stated.

Earlier this month, Estate Net France made a similar claim, noting that the new regulations will make the idea of selling a property in the country more appealing among non-resident owners.

Property sales in south of France expected to rise

Mon, 10 Oct 2011 00:00:00 GMT

There are likely to be more homes put up for sale in the south of France over the coming months, one local estate agency has claimed.

Estate Net France believes that the introduction of a new capital gains tax, which will affect all property owners in the country, will result in an increased number of houses coming on to the market.

The organisation noted that these may even be offered at reduced prices by vendors who are keen to shift their asset before the tax comes into force on February 1st 2012.

According to Estate Net France's Luxury Property Index for the French Riviera and Monaco, the values of homes priced at €1 million (£868,616) or more remained stable during September, recording a 0.64 per cent rise over the month.

However, the company pointed out sales of real estate in this region of France have risen by 2.19 per cent since August.

Under the current regulations, capital gains tax is payable in its entirety for the first five years of property ownership and is reduced by ten per cent for the next decade, when it is then possible to sell the home tax-free.

However, the new rules will see capital gains tax paid in full for the first five years, with progressive reductions between years five and 16, years 16 and 24 and years 24 and 30 of two per cent, four per cent and eight per cent respectively.

France top choice for Brits buying abroad

Thu, 29 Sep 2011 00:00:00 GMT

Britons looking to purchase property abroad should consider homes in France.

This is because the country has been picked out as the best option at the moment by a Savills report for the Daily Telegraph.

The range of dwellings on offer is among the best in the world, while certain parts of the country - such as Brittany and Normandy - are easily accessible from the UK.

"French banks have continued to lend on second homes, stimulating the market," the report stated.

Prices are bouncing back after taking a 20 per cent drop in the cost of a dwelling between 2007 and 2009.

Other countries that fared well in the study are the US, Portugal and Italy.

The French ski resort of Megeve recently recorded a 4.3 per cent growth in real estate prices in the year to June 2011, according to the Knight Frank Ski Resort Property Index.

Meanwhile, US locations Telluride and South Lake Tahoe saw prices fall annually.

Property prices in French ski resorts 'bounce back'

Wed, 21 Sep 2011 00:00:00 GMT

The value of properties located in the French Alps has recovered from the global recession, with eurozone buyers helping to boost the market.

This is the finding of the latest Knight Frank Ski Index, which evaluates the performance of real estate in key winter sports locations.

According to the organisation, the resorts of Courcheval, Megeve and Val d'Isere have shown the strongest performance in terms of sales activity.

Liam Bailey, head of residential research at the firm, explained that this kind of French property is performing better because it has become less seasonal.

"Summer tourism, often involving hiking and climbing, particularly in the Alps, has helped to increase rental incomes for many second home owners," he noted.

Overall, Knight Frank found that annual price growth for ski properties Europe was 1.7 per cent during the second quarter of this year.

Earlier this month, Propertywire reported on figures published by French organisation FNAIM, which revealed that real estate values in France recorded an average increase of 3.3 per cent in the three-month period from April to June, compared to the previous quarter.

Paris luxury property 'a sought-after asset'

Tue, 20 Sep 2011 00:00:00 GMT

Luxury properties around the world are attracting attention from investors at present, with Paris named as one of the markets that is receiving the most interest.

According to the Christie's International Luxury Residential Report, Paris is one of the real estate markets that has a scarce supply of high-end homes, which is driving up prices in the most desirable locations.

Charles-Marie Jottras from Daniel Feau Conseil Immobilier commented that strict planning regulations in the French capital mean that new luxury properties are unlikely to enter the market at present.

"Planning laws mean that any new buildings must have a percentage of affordable housing included and that is just not going to happen at the high end," he stated.

Earlier this month, RFI reported that property prices in Paris have climbed by 22.5 per cent over the last year, which was described as the biggest rise in values in two decades.

According to the publication, the sixth arrondissement is the most expensive district in the French capital.

French property prices rise

Mon, 12 Sep 2011 00:00:00 GMT

Properties in France have recorded their fifth consecutive quarter of price rises, the latest data published by FNIAM shows.

According to Property Wire, the organisation - which represents more than 1,700 estate agents in the country - recorded a 3.3 per cent quarterly increase in real estate values.

This year alone, average prices have jumped by 6.8 per cent so far, the news provider noted.

However, FNIAM is predicting that the market will stabilise by the end of 2011, adding that house values could even decline before the year is out.

Chief executive of Leggett Immobilier Trevor Leggett told the publication that it is important that both buyers and sellers remain realistic about French house prices, stating "sensible pricing will mean that transaction levels remain consistent and both buyers and sellers will benefit".

Meanwhile, RFI reported yesterday (September 8th) that property values in Paris have risen by 22.5 per cent in the last year, making this the biggest hike the real estate sector in the region has seen in two decades.

French tax changes 'may benefit property investors'

Tue, 6 Sep 2011 00:00:00 GMT

Property investors who plan to purchase real estate in France and sell it within five years look set to benefit from proposed changes to the country's capital gains tax scheme.

Speaking to PropertyWire, director of French Private Finance John Busby explained that those who sell their asset within the first five years of ownership are set to receive a lower capital gains tax bill than previously.

However, anyone who holds on to their property will be liable for a greater charge, because inflation will now be taken into account, rather than reducing the capital gains bill by ten per cent for every year of ownership after the first five.

Mr Busby told the publication that because inflation can now be offset against the amount of capital gains tax to be paid, investors who sell within the first five years will be the "main beneficiaries" of the new rules.

Last month, Paris was named as one of the top performing global cities in a Knight Frank index examining the second quarter of the year.

According to the organisation, the French capital experienced a year-on-year rise in real estate values of ten per cent during this period.

French house prices rise

Mon, 5 Sep 2011 00:00:00 GMT

The value of homes in France has risen dramatically in the year ended during the first quarter, Global Property Guide has reported.

Figures from the National Institute for Statistic and Economic Studies revealed a 9.1 per cent increase in prices during the period, the news provider stated.

During the first three months of 2011, the cost per square metre for apartments in Paris jumped by 17.11 per cent, while large rises were also recorded for houses in Ile-de-France - the region in which the capital is located - and the Petite Couronne.

Marseille and Lyon experienced year-on-year hikes of 7.2 per cent and 17 per cent respectively among residential real estate values, compared to the first quarter of 2010, the publication noted.

Last month, founder of PropertyJounalist.com Marc Da-Silva stressed that there are some "fantastic opportunities" for investors in Europe at present.

He noted that there is the potential for good rental yields to be achieved in many areas across the continent.

Building costs in France 'among the world's highest'

Fri, 19 Aug 2011 00:00:00 GMT

France has been named as one of the most expensive countries in the world in which to build new property.

According to a survey released by EC Harris, the European nation came fifth place in the table, behind Switzerland, Denmark, Sweden and Ireland.

However, the research stated that "construction costs are remarkably consistent among the largest EU countries".

The high price of building a property in France may mean that more investors put their money into existing homes rather than new developments.

Head of cost and commercial at EC Harris Matthew Riley warned that the supply of building materials could become a problem for developed nations in the future.

Although France does not top the table in terms of its construction expenses, it was the highest-ranked European country in the Knight Frank Global House Price Index published earlier this year.

The organisation attributed rising real estate values to economic growth during the first quarter of 2011, which has helped boost consumer spending, productivity and demand for properties.

Rural properties in France 'becoming more popular'

Thu, 18 Aug 2011 00:00:00 GMT

An increasing number of Brits are seeking out rural properties in France, one real estate expert in the country has revealed.

Patrick Joseph, from My-French-House.com explained that small dwellings in a countryside location with their own land are attracting more attention from overseas investors than previously.

"A rural lifestyle in England comes with a hefty price tag and UK buyers are discovering that they can achieve their dream of a sustainable lifestyle across the Channel far more cheaply," he stated.

Mr Joseph highlighted the Languedoc and Limousin regions as being particularly popular at present among foreigners looking to relocate.

He also noted that real estate assets in France have not undergone the same dramatic price falls as in other eurozone nations, adding that the country is viewed as something of a safe haven on the continent.

And his assertion is backed up by the Knight Frank Global House Price Index for the first quarter of this year, which saw France as the highest ranked European nation in the table, registering annual price growth of 8.7 per cent.

Prime property in Paris records 'steady' demand

Tue, 9 Aug 2011 00:00:00 GMT

The demand for prime real estate assets in Paris during the second quarter of the year has remained steady, new research shows.

In the Knight Frank Prime Global Cities Index for the three months from April to June, the French capital was ranked third, registering flat price growth over the quarter but a ten per cent rise in property values annually.

According to the firm, Paris's real estate market has been attracting attention from overseas investors, particularly those from the Middle East and Syria.

Meanwhile, supply of prime assets has increased as a number of vendors have put properties up for sale in the hope of capitalising on the boost that prices have received over the past six months.

Earlier this year, France was the highest-placed European nation in the company's Global House Price Index for the first quarter.

Sitting in sixth position, the country had experienced an 8.7 per cent rise in values compared to the previous year and had seen prices climb by 0.3 per cent in the first three months of 2011.

French property purchase process 'is relatively simple'

Wed, 13 Jul 2011 00:00:00 GMT

Those looking to move from the UK and invest in French property will find that the process for doing so is not complicated.

That is according to Sharon Evans, director of Cle France - property specialists in the north-west of the country - who suggested that some people may feel wary of buying property abroad, especially when the culture is so different.

However, buying a house is relatively easy in France, she said.

"It is a simple system and a system that I think gives the buyer considerable support. It is a safe system, a well-tried and tested system and it is quite simple and quite logical," Ms Evans explained.

The expert added that gazumping is not common in French property purchase as sellers generally stick to their first acceptance.

Leggett recently reported that its website has seen a rise in visitors to its French property pages from around the world, with Americans boosting reader numbers by 52 per cent over 2010.

Provence property market is "healthy"

Fri, 8 Jul 2011 00:00:00 GMT

The real estate sector in Provence in France has been described as "healthy" by one local expert.

Speaking to the New York Times, owner of Your Provence Antoine Reguis explained that properties in the region usually sell within four to six months of going on the market.

He went on to explain that the price of a home in the area will often be pushed higher if it has a large garden or other associated land, noting that village houses with a garden can sell for as much as 800,000 euros.

Meanwhile, managing director of real estate firm Un Mas en Provence Marie-Madeleine Nelson told the publication that there has been a downward movement of values, but that "prices are still high, in spite of a slight decrease in 2010".

She claimed that the drop was a necessary part of the property sector's overall correction.

Last month, French president Nicolas Sarkozy announced that plans to introduce a second homes tax in the country had been shelved. The levy was set to affect around 360,000 residences and would have been a significant expense for those owning second properties in the nation.

Property prices in Paris expected to fall

Sat, 25 Jun 2011 00:00:00 GMT

The value of property in Paris is likely to drop over the coming six months, with one local expert noting that prices are "more negotiable than before".

In an interview with Overseas Property Professional, Gilles Martinetti, director of Papty, predicted that the market will see values dip by around five per cent before 2011 comes to a close.

"The market will continue to slow, though not dramatically. Prices may fall five per cent in the next three to six months. It could reach ten per cent by the end of the year but that's very unlikely," he asserted.

Mr Martinetti's predictions are backed up by figures published earlier this week by Databiens.com, which showed that average values in Paris were down by three per cent between January and May.

Founder of the research organisation Laurent Lakatos commented that an increasing number of properties are being put on the market at discounted prices.

According to Databiens, the amount of time it takes to sell a property in the French capital has nearly doubled over the past 12 months.

Plans for second home tax in France scrapped

Wed, 22 Jun 2011 00:00:00 GMT

Proposals to introduce a tax on second homes in France have been dropped, with president Nicolas Sarkozy deciding to remove the levy after the move had been approved by the French parliament last week.

Under the tax scheme, owners would have been forced to pay 20 per cent of the theoretical annual rent that could be gained from the property to the government.

It was estimated that the move would affect around 360,000 residences, including those owned by French nationals who live abroad but have retained a property in their home country.

Joelle Garriaud-Maylam, one of the nine senators who was at the meeting with Sarkozy at the weekend, commented: "The president told us he had been convinced [the law was a bad idea] and has taken a decision [to scrap it]."

The announcement is likely to come as a relief to those with second homes in the country, as non-resident property owners already pay two taxes to the French government.

In the recent Knight Frank Global House Price Index, France was the best-performing European nation, reaching sixth position in the table of 50 countries after its property prices registered annual growth of 8.7 per cent.

Leaseback sales in France attract foreign buyers

Tue, 21 Jun 2011 00:00:00 GMT

Foreign investors are being attracted to leaseback properties in France being put up for sale by Irish owners.

This is according to Sextant Properties, a French estate agent, which noted that the number of Irish nationals looking to offload their overseas properties has risen.

Speaking to Overseas Property Professional, Rachel German from the company, explained: "With the leasebacks the sellers can often be in financial difficulty so want to sell quickly. And they need high rental yields to attract clients so prices can be lower."

She added that the majority of interest is coming from investors in the US, Asia and Gulf region.

The length of a leaseback on properties in France is usually between nine and 11 years and is renewable. Rent is normally set at a fixed rate that is linked to inflation.

Investors that purchase a leaseback in France will also be entitled to reclaim the VAT paid on the purchase, which is charged at 19.6 per cent.

New French property tax to have 'minimal' impact

Thu, 16 Jun 2011 00:00:00 GMT

The impact of new French second home tax changes are likely to be "minimal", with investors not expected to be put off purchasing homes in the country.

This is according to Assetz International, which noted that the destination's proximity to the UK and appealing culture means that its status as one of the most popular countries for second home owners will not diminish.

However, the firm did claim that "less wealthy homeowners" will view the tax as an additional burden, adding that many already pay tax for local services, Overseas Property Professional reports.

"The additional tax looks like it will be minimal and will not discourage buyers from purchasing a holiday home in France," Assetz concludes.

Under the plans, second homeowners in France will incur a 20 per cent tax on their additional home. Something which Assetz believes will lead to an increase in the number of investors choosing to purchase leaseback property.

Increased air travel in France could interest buy-to-let invvestors

Wed, 8 Jun 2011 00:00:00 GMT

An increase in air travel to France's Nice Cote d'Azur airport is likely to come as welcome news to buy-to-let investors in the region.

Figures have revealed a 9.1 per cent increase in the number of holidaymakers choosing to travel to the region.

Speaking to Overseas Property Professional, Charlie Williams, business development manager of Terresens, said: "Investing in property on the French Riviera is simply common sense.

"High rental yields can easily be achieved with the large volumes of tourists visiting the French Riviera each year along with the abundance of annual conferences and events taking place especially in Cannes, making the South of France an excellent choice for your overseas property investment."

Meanwhile, demand for real estate in the country could be set to rise after it was revealed that the country has beaten off competition from Germany, Holland, Portugal and Spain to secure the 2018 Ryder Cup.

It could prompt a number of buy-to-let investors to purchase property in France to take advantage of the massive tourist boost that the competition will bring.

France wins 2018 Ryder Cup bid

Mon, 6 Jun 2011 00:00:00 GMT

French real estate could find itself high up on investors' wish lists after it was revealed that the country has beaten off competition from Germany, Holland, Portugal and Spain to secure the 2018 Ryder Cup.

The bid process set about securing the best possible venue for the event, with France offering a number of world-class courses including Le Golf National on the outskirts of Versailles near Paris.

It could prompt a number of buy-to-let investors to buy property in France to take advantage of the massive tourist boost that the competition will bring.

Meanwhile, price reductions across the country mean that there are now a number of bargains available for savvy buyers. This is according to Heslop & Platt, which noted that reductions of up to 25 per cent have been seen in some areas.

Barbara Heslop, partner at the company, explained that buyers needed to stray away from traditional locations if they are to find bargains.

Bargains available in France, buyers told

Fri, 3 Jun 2011 00:00:00 GMT

Price reductions across France mean that there are now a number of bargains available for savvy buyers.

This is according to Heslop & Platt, which noted that in some areas of the country there has been a 25 per cent reduction in asking prices.

Barbara Heslop, partner at the company, explained that buyers needed to stray away from traditional locations if they are to find bargains.

"Obviously not in the hotspots like the Alps or the Cote d'Azur. But in other areas there have been some really interesting price reductions, so you can get bargains."

She added that although exchange rate fluctuations are currently "not helping" buyers, the price reductions seen in many regions of the country have "almost offset" the change in foreign currency values.

Ms Heslop's comments come after news that an increase in air travel of 9.1 per cent to France's Nice Cote d'Azur airport has been recorded in recent months.

French property market 'not heading toward a bubble'

Mon, 30 May 2011 00:00:00 GMT

French property buyers are likely to be encouraged by news that the country's real estate market is not heading towards a bubble.

Prices in the country have been on an upward trend over the past few years, with experts suggesting that this is a result of a lack of supply - rather than financial speculation.

Jean-Philippe Cotis, the general manager of the INSEE, explained that despite reports from that the National Institute for Statistics to the contrary, the formation of a bubble is unlikely.

The news will be welcomed by those looking to buy property in France, with continued positive price growth suggesting that there are opportunities to be had in the sector.

Elsewhere, Charles Smallwood, owner of Agence L'Union, recently claimed that cash-rich Brits are looking to take advantage of the bargain prices on offer in certain areas of France.

The firm noted that many sellers in the country have lowered their prices by as much as 20 to 30 per cent.

Increase in air travel to benefit French property market

Sat, 28 May 2011 00:00:00 GMT

An increase in air travel of 9.1 per cent to France's Nice Cote d'Azur airport could be the incentive that property investors are looking for, it has been suggested.

Charlie Williams, business development manager of developer Terresens, said that investing in the French Riviera should be viewed as "common sense", adding that the high level of tourists the region attracts means that high rental yields can be achieved.

"The abundance of annual conferences and events taking place especially in Cannes, make the south of France an excellent choice for your overseas property investment," he explained.

Mr Williams noted that the short distance to the UK and the rest of Europe has made France one of the most popular choices for investment property buyers in the world.

The south of France, he added, is a prime example, with the airports of Nice and Marseille offering easy access to the French Riviera all year round.

Brits taking advantage of low French prices

Wed, 11 May 2011 00:00:00 GMT

French property is proving to be popular among cash-rich British buyers, with many of them looking to take advantage of the bargain prices available to them.

This is according to Charles Smallwood, owner of Agence L'Union, who noted that many sellers in the country have lowered their prices by as much as 20 to 30 per cent.

The reductions have succeeded in attracting a number of savvy Brits over the Channel, with real estate considered a more worthwhile investment than bank interest.

“Suddenly a lot of people with money up to a certain level - 350,000 to 400,000 euros - [realised] it wasn't doing any good for them in the bank, so they were coming out [to France] and buying a property for bargain prices," Mr Smallwood explained.

He added that many Brits are heading to rural southern France to purchase property, in order to avoid the crowds and high prices of Nice and Cannes.

The comments follow the release of the latest figures from Rightmove Overseas which show that searches for properties in France increased by 3.13 per cent in March.

Paris market is ‘stronger than ever’

Tue, 10 May 2011 00:00:00 GMT

Demand for property in France could be set to rise after it was claimed that the housing market in Paris has “never been stronger”.

Tim Swannie, director of Home Hunts, delivered the positive forecast earlier this week, noting that the region’s stability is attracting buyers from all over the world.

Speaking to Overseas Property Professional, Mr Swannie said that interest from Italy, Russia, China and Middle Eastern countries, along with Brits was driving demand.

“The property market in Paris stayed strong through the global recession - so no one wants to sell, but clients from all over the world are interested in buying here,” he added.

According to the firm, apartment prices in Paris have increased by approximately 20 per cent over the course of 2010, with further rises expected by the end of this year.

For a good quality apartment in the centre of Paris, buyers will be paying from €15,000 to €25,000 per square metre, Mr Swannie said.

French mortgage rates set to rise, firm warns

Thu, 5 May 2011 00:00:00 GMT

Individuals looking to buy property in France may be interested to learn that higher eurozone inflation could lead to an increase in mortgage rates in the country.

This is according to Athena Mortgages, which claimed that the rise will come on the back of the European Central Bank's (ECB) decision to raise the main interest rate to 1.25 per cent in April.

It comes after two years of the ECB leaving the rate at one per cent and is an attempt by the finance house to ward off inflation.

However, Athena Mortgages noted that there has not been much change in the rates on offer for mortgages in France since the announcement of the increase.

"Markets and banks had in fact already priced in this increase. We have seen an average increase of about 0.20 per cent in the cost of variable rate mortgages, with some banks opting to further increase their margins," said director of the firm John Busby.

But the organisation added that further increases are on the way.

"We should expect further increases to the lowest rates on offer and a flatter market overall as it becomes more expensive for banks to refinance and maintain market beating rates," Mr Busby said.

France offers investors 'double digit returns'

Wed, 4 May 2011 00:00:00 GMT

Property investors have been told to look at what is on offer in France if they want to attain double-digit returns.

According to property firm Experience International, the country's real estate market offers good opportunities for buyers, with its robust nature proving attractive.

It follows that release of the latest Knight Frank Global House Price Index which shows that France enjoyed a 9.5 per cent annual increase in property prices in the final three months of 2010 compared to the same period 12 months ago.

Steven Worboys, managing director of Experience International, said: "Surpassed within Europe only by Latvia and Austria, the near double digit annual price increase is highly indicative of the robust nature of the French property market.

"The unique conditions we find ourselves in today with the lowest interest rates since WW2, strength of the pound and rising prices make this the perfect time to buy."

However, Homesgofast.com recently reported that economic uncertainty in a number of European destinations has prompted foreign real estate investors to look "further afield" for the best returns.

French property demand remains high

Wed, 20 Apr 2011 00:00:00 GMT

Demand for property in France appears to be strong, with the number of overseas enquiries for homes in the country rising.

Comments from French estate agent Leggett Immobilier suggest that the country has put the recent global economic troubles behind it and is now an attractive market for investors to by in.

So far in 2011, the firm reports that it has seen an almost 100 per cent increase in new buyer enquiries compared to last year's figures.

The stability offered in France is proving attractive to international property investors and reports suggest that the increasing demand is also being driven by mortgage rates, which are at their lowest levels since the Second World War.

"Enquiry levels from both shows are substantially up from both 2009 and 2010," managing director Trevor Leggett said.

"This is particularly the case for property on the Cote D'Azur where our representatives have already closed a significant number of sales this year."

Meanwhile, according to the latest figures from foreign exchange company Moneycorp, Germany, France, Italy and Ireland all proved popular destinations last month.

Low-risk on offer in France

Thu, 24 Mar 2011 00:00:00 GMT

France offers property investors a low-risk, value for money option when it comes to real estate, it has been claimed.

A growing number of British property buyers are now looking at investing in the market, with the country accounting for more than 40 per cent of all mortgage enquiries from Brits buying overseas.

Speaking to A Place in the Sun, Patrick Joseph, of property portal My-French-House.com, believes that stable prices and close proximity to the UK are the main factors behind the trend.

"Property in France doesn't devalue and although the financial gains won't be dramatic there is an almost guaranteed return on investment over time," he said.

Indeed, it would appear that the long-term security offered in France is an attractive prospect for investors, particularly those who have experienced market volatility in other parts of Europe in recent years.

According to France's national association of estate agents, the FNAIM, there will be price rises this year between three and six per cent.

Price rises in France tempting investors

Wed, 16 Mar 2011 00:00:00 GMT

A growing number of overseas investors are looking to take advantage of rising prices in France, it has been suggested.

According to the latest monthly report from Rightmove International, internet searches for real estate in the country have risen dramatically.

Indeed, the firm explains that included within its top ten climbers were several French regions.

The Midi-Pyrenees was up 6.87 per cent, Alpes-Maritimes up 6.53 per cent, the Loire Valley up 5.59 per cent and the Pays de la Loire which was up 2.5 per cent.

It comes in the wake of new figures which show that residential home values in Paris increased by almost 18 per cent in 2010, following after a four per cent decline a year earlier, according to Paris Chamber of Notaries.

Righmove added that other top climbers were Ireland, up four places and Germany, up one place, with price making a big difference according to Robin Wilson, head of Overseas at the firm.

Brits warned to plan when moving abroad

Mon, 14 Mar 2011 00:00:00 GMT

Britons considering buying overseas property have been reminded that living abroad will not solve all of their problems.

Rhiannon Davies, director of expatriate advice website Shelter Offshore, said that people "need to know that the grass isn't always greener abroad and so they need to think carefully about the legitimacy of their dreams of their new life".

The advice comes after television presenter Amanda Lamb suggested that France, Spain and Portugal are still some of the most popular countries for expatriates.

However, Ms Davies' comments follow the publication of the Post Office's latest Happiness Index, which revealed that 70 per cent of British expats rank themselves as very happy with their new life, with a further 60 per cent claiming to feel a greater sense of community in their new country than they did in the UK.

Ms Davies added that people need to consider things like how to find work, affordable accommodation and food when they move, rather than assuming that their life will automatically improve when they're living in a sunny climate.

Outlook positive for French property market

Thu, 3 Mar 2011 00:00:00 GMT

Record-low interest rates and generous tax breaks from the French government are helping to drive massive demand for property in the country, a leading mortgage specialist has claimed.

As a result, British investors are increasingly finding themselves in competition with native French buyers for the most sought-after developments.

This is according to Athena Mortgages, which highlighted the positive impact that the tax breaks are having on real estate sales.

John Busby, director of the firm, pointed to recent figures which suggest that the crisis in the sector may be over with in excess of 115,000 units sold in 2010.

"The ultra low interest rates combined with excellent tax breaks have created a buying frenzy in France, which has meant that many investors from Britain had been missing out on the prime units, preferring to wait until something more suitable comes along," Mr Busby said.

Mr Busby added that the outlook for 2011 was looking much more positive, with an increase in the level of stock and choice likely to tempt more individuals to buy property in France.

Could demand for French property be set to rise?

Fri, 18 Feb 2011 00:00:00 GMT

Demand for property in France could be set to increase following the results of a recent survey by the Worldwide Property Group.

A significant majority of respondents to the survey believe that now is a good time to buy real estate overseas, with France cited as one of the most popular destinations to do so.

Brazil, Spain and the US were also named as favoured countries to invest in property in.

According to the results of the survey, confidence in UK property is also being boosted by the current trend for low interest rates, with 72 per cent of respondents seeing the benefits of depressed base rates in the country.

Meanwhile, in a recent interview with Overseas Property Professional, international mortgage broker Baydonhill has urged UK-based investors to consider the openings in the French market at present.

The firm explained that opportunities are being missed as a result of "common misconceptions" surrounding prices and currency.

Brits can capitalise on opportunities in French property market

Fri, 4 Feb 2011 00:00:00 GMT

Opportunities are being missed in the French property market as a result of "common misconceptions" surrounding prices and currency.

Speaking to Overseas Property Professional (OPP), international mortgage broker Baydonhill has urged UK-based investors to consider the openings in the market at present.

Those looking to buy property in France may be interested to learn, for example, that base rates in the country are currently at their lowest level for over 60 years.

"The weak pound has led many to believe, incorrectly, that they cannot secure a French euro-based mortgage without transferring sterling," Baydonhill told OPP.

"UK investors are also not fully aware of the drop in prices relative to the UK, with values having fallen from 2008 levels by as much as 30 per cent in some areas."

The views are echoed by another mortgage specialist in the country which believes that there are still plenty of good deals available to British buyers.

Athena Mortgages has highlighted the fact that not all banks in the country have decided to increase their margins, meaning that there is still an opportunity to capitalise on competitive lending rates.

Banks still offering 'good deals' in France

Tue, 1 Feb 2011 00:00:00 GMT

Despite an increase in perceived risk causing a slowdown in property lending by banks, those looking to buy property in France can still get a good deal.

Athena Mortgages has highlighted the fact that not all banks in the country have decided to increase their margins, meaning that there is still an opportunity to capitalise on competitive lending rates.

"It is interesting that the market is increasing the prices for long term interest rates, indicating a belief in growth and inflation in the medium term," John Busby, director of Athena Mortgages, said.

"The demand for loans for purchases in France is certainly there and it will be interesting to see what effect if any these increases have."

It comes after a report from the European Central Bank claimed that a large number of banks across Europe have steadily declined and tightened procedures relating to property lending.

This is despite many euro-based banks reporting an increased demand for mortgage loans in the last quarter of 2010.

Prices begin to rise in French property market

Wed, 12 Jan 2011 00:00:00 GMT

House prices in France have increased for the first time in eight quarters, new figures have revealed.

Research conducted by the Federation National de L'immobilier (FNAIM) has found that home values in the destination have started to rise once more following a period of stabilisation in 2010.

Speaking to Overseas Property Professional, Tracey Hudson, sales manager at local agency Leggett Immobilier, said that current historically low mortgage rates in the country will prove to be beneficial for the real estate market.

The expert believes that the French property sector will see "a modest rise in prices throughout 2011 with substantial growth in some hot spots".

Indeed, Ms Hudson also thinks that some UK buyers will choose to buy property in France rather than at home so that they do not risk entering the British housing market too soon.

According to the Global Real Estate Trends report, during 2010 France was singled out as one of the top-performing markets - alongside Canada, Australia, Sweden, Switzerland and the UK.

Prices to rise in France this year

Tue, 11 Jan 2011 00:00:00 GMT

Average property values in France are expected to experience modest rises throughout 2011, while some regions will see significant increases.

This is the forecast from Leggett Immobilier and the FNAIM, which also noted that mortgage rates in the country are at their lowest levels since World War II.

Real estate in the country has had its ups and downs over the past few years, with considerable falls occurring in 2009 - in some areas by as much as 20 per cent - followed by a period of stability last year.

With this increased stabilisation and with prices now standing at more realistic levels, there has been a rekindled interest in these sectors, Leggett Immobilier added.

Trevor Leggett, chairman of the French-based estate agents, believes that the market lows of 2009 are now a thing of the past.

"I have been selling houses in France for over 18 years now and am confident that the worst of the market is behind us," he confirmed.

Paris property prices to rise even further?

Mon, 13 Dec 2010 00:00:00 GMT

Those looking to buy property in France could see prices in Paris rise even higher than their current level, it has been claimed.

Despite having already reached an all-time high in the third quarter of 2010, new legislation could see prices in the French capital saw even higher, aplaceinthesun.com reports.

This is because new laws due to be introduced next month will require all people selling property in France to produce an energy report.

The added cost and burden is expected to see a reduction in the number of homes coming onto the market, meaning a further lack of supply and higher prices.

It follows a recent report from the Paris Chamber of Notaires which revealed that prices for real estate in Paris have risen sharply in the past year.

Indeed, the average property price has for the first time broken the EUR 7,000 per square meter barrier, the organisation said.