April 9th, 2008
What's red hot and cold enough in France

The French property market has been a hot topic of late as things turn cold in other markets through the effects of the credit crunch. With an apparently stronger market many investors will be keen to see what the best property investment deals are at present.

What is not in doubt is that France is getting a highly favourable press just now. Standard and Poor's recent survey of property markets around Europe, as reported by Finfacts last week, described French market conditions as “benign”, poised to be steady this year thanks to a low level of household debt compared to the European average, economic growth and falling unemployment, all of which will see it spending the next few years enjoying annual rises of around a steady three per cent.

So where should investors look? Louise Hall, business director at estate agents′ and property website Primelocation.com, said that the Alps remained a popular location, noting: “People have had more opportunity to buy in the Alps in the last few years and have looked at buying apartments and chalets because they are easy to rent out and you have sporting seasons throughout the year in certain resorts.”

However, she stated, things are not that simple: “This [availability of year-round attractions] is very dependent on which resort because of snow levels and the weather - Meribel is an all-year round resort, where somewhere like Chamonix is less so.” This matters, she commented, because the old adage that an investment in the Alps was a “sure sale to buy in France because everyone skis” has been dented by the fact that “due to the realities of climate change, snow can vary.”

For all that, Alpine property has got plenty going for it, as explained last month by Frederic Chamouret, a property advisor with French property specialists VEF, who stated that prices in the mountain range had risen by 90 per cent in the last decade.

Of course, investors may look at a number of different places in France for different reasons. Those looking for ski resorts away from the Alps may favour the Pyrenees, where the proximity of Spain may appeal to some. Others will opt for the sun, sea and sand of the Côte D'Azur, while another group may prefer the major wine-growing regions.

Ms Hall noted that Paris is currently a major destination for UK investors, stating: “in terms of the cost of apartments and so forth, Paris is a relatively good buy because there is an infrastructure there and it has an industry.” To this, she added, was the extra appeal of the new faster Eurostar service which improved the connection with London.

The one downside to investing in France, she advised, was the unfavourable value of the pound against the euro at present. However, with interest rates subject to change for at least one if not both currencies in the months ahead, that may change.

Information:
Source: Assetz® Property News Service
Assetz® is a UK and International Property Investment Specialist.
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