French property market overview

Property prices have showed excellent average growth increases of 16% and 10% for older French properties and new builds respectively, according to 2004 figures.

France offers great diversity in both property type and region. You can buy in city, town or rural locations including ‘crash pads’ for urban living and authentic farmhouse properties.

However, you need to be aware that some areas in France can be remote and isolated. Therefore you need to think carefully about risk to rental returns in regions where tourism is not well developed. Check the climate for the area too - considering the time that the property might not be able to be let and property proximity to airports, major roads, etc.

The most expensive residential properties in France are found in Paris, the Alps and Cote d’Azur regions. All these areas enjoy high tourist traffic volumes.

If you decide to buy French property, note the following tips:

• excellent investment growth potential is currently available in the Southern Alps regions


• the longest rental periods are found in Mediterranean coastal properties and


• leaseback property schemes offer guaranteed rental returns with the added bonus that new properties attract no VAT charges. But do get your solicitor to thoroughly check leaseback terms.

However, if you can put in marketing effort into your property - you can gain some excellent capital growth figures in lots of French regions

The process of buying properties for sale in south of France can be involved so make sure you do your homework before you make a bid.