Press Release Summary: France has been an interesting case when it comes to the assessment of the property fortunes of different countries. While some markets have struggled and others remain strong due to their status as emerging markets with cheap bargains, France seems to be somewhere in the middle.
Press Release Body: France has been an interesting case when it comes to the assessment of the property fortunes of different countries. While some markets have struggled and others remain strong due to their status as emerging markets with cheap bargains, France seems to be somewhere in the middle.
Of course, the country which has traditionally been second only to Spain for popularity among UK buyers has been pushed towards becoming a nation of property owners by President Sarkozy. But the latest evidence is that growth is a phenomenon with considerable regional variation.
This was shown by a report from the FNAIM, the French National Association of Estate Agents, which revealed that in the 12 months to the end of March this year the national house price increase had averaged 3.1 per cent. However, certain locations did far better: Biarritz was up by 8.2 per cent, Toulon by 8.4 per cent and prices in Le Havre soared by 13.1 per cent. In contrast, there has been little change in prices in the south-west of the country. In contrast with these higher prices, the island of Corsica offers plenty of bargains, the Times reported last week.
It was noted by FNAIM that recently prices have taken a dip, with March seeing a 1.6 per cent fall. However, this is not expected to be the start of a slump; rather, a flatter market is expected in the near future.
Reflecting on the market, French property firm VEF suggested that in fact few, if any investors would look to France just for quick growth. Founder and managing director Trisha Mason said most UK investors were looking to \"combine lifestyle with financial investment\", adding: \"The French property market has always been stable and has rarely been exceptionally interesting for hardcore investors who are prepared to take the risks to enjoy the potentially high capital growth which the emerging markets offer.\"
Clearly then, this is a market for those who prefer their glass of Bordeaux to walking the high-wire to a possible fortune in new markets. The lifestyle elements of France can be enough to attract those who would want nothing but the lifestyle, be it the romance and bustle of Paris, the sun and sea of the Cote D\'Azur or the Alpine sports of Chamonix.
But for Ms Mason, much of the business of investing in France property is about making it a part of an investment portfolio, not necessarily all, stating: \"We believe that property in France remains an essential part of any well balanced property investment portfolio.\"
Indeed, it may be that the wisest approach to investing in France is to split this with an investment in an emerging market, offering a bit of both worlds, with the stability of France acting as a cushion against any misadventures elsewhere.
2022
