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French Property News

  • Rural French property 'experiencing peaks and troughs'


    Property in the French countryside is experiencing peaks and troughs, according to the latest French Rural Property Index.

    The data from Sextant French Properties highlights that the average property price across 12 regions dropped 0.4 per cent in August 2010, compared with July 2010.

    However, this represents a 13.69 per cent increase over the past ten months and a number of regions, including Aquitaine, Centre, Midi-Pyrenees, Nord Pas-de-Calais and Normandy all saw their prices rise.

    In particular, there is good news for people with Midi-Pyrenees property listings as the average price in the region has increased 32 per cent from October 2009 to €428,554.

    For people looking to invest their cash in French property, the firm recommends Languedoc, which is one of the sunniest regions and has seen modest price rises of 2.83 per cent since October last year, and Limousin, which has seen prices drop 7.55 per cent in the past nine months.

    Shelter Offshore recently said that property in France represents an evergreen investment.
     

  • Property in France an evergreen investment


    French real estate is an "excellent purchase" when approached in the right manner, people undertaking a search for properties in Languedoc-Roussillon will be pleased to hear.

    According to Shelter Offshore, demand for holiday homes in France is strong and consistent, meaning people should have no trouble renting out their Rhone-Alpes property to holidaymakers.

    The firm also stated that well-priced property is still available in France, although people will have to hunt for bargains and then negotiate hard to get the best deals.

    "You will probably have to be prepared to update and upgrade any real estate you do buy to make it appealing to rental tenants if you want to enjoy the best returns. However, an investment in a property in France can be a very slow burning, steady commitment that can return you decent capital appreciation as well as rental income," the company added.

    Last week, data from Chesterton Humberts highlighted that the most popular areas of France for second home owners are Provence-Alpes-Cote d'Azur, followed by Languedoc-Roussillon and Rhone-Alpes.
     

  • French property market 'in recovery'


    The French property market is showing signs of recovery, according to the latest data from Chesterton Humberts.

    In the 12 months to March 2010, the average price of new single family homes rose by 5.9 per cent, while new apartment prices were up 6.9 per cent.

    However, prices for resold family homes rose by just 2.6 per cent.

    The report also highlighted that the most popular region for foreign second home owners was Provence-Alpes-Cote d'Azur, followed by Languedoc-Roussillon and Rhone-Alpes.

    Overall, foreign ownership of second homes has risen by over 50 per cent since 1997, people thinking about investing in French property may be interested to know.

    "The outlook for the remainder of 2010 is likely to be characterised by a slow but gradual improvement in both demand and firming of prices," the report concluded.

    Last month, France's Chamber of Notaries revealed that Bordeaux, Lille, Lyon, Toulouse, Nice and Paris all experienced appreciation of property values during the first three months of 2010.
     

  • New ski train 'to boost property investment in France'


    A new ski train between the UK and the Alps is likely to boost property investment in France, it has been claimed.

    Its ease of accessibility is one of the reasons France is particularly popular with UK investors and the new winter service is likely to increase interest further.

    Charlie Williams, French property expert at Experience International, said: "The French Alps have and always will offer the finest skiing in Europe in my opinion. Ski property with quick and easy access from the UK is in particularly high demand and the news that you can go from London to the Alps in seven hours spells good news for owners; I fully expect demand and subsequently property values to rise."

    The winter Eurostar service will begin on December 19th and will travel from St Pancras and Ashford International to Moutiers, Aime-La-Plage and Bourg St Maurice.

    Earlier this month, managing director of French Travel Service Bill Smallwood said that the Eurostar has boosted France's popularity as a holiday destination as people can easily enjoy a comfortable and scenic trip to the nation.
     

  • France and Germany tipped for commercial property investment


    France and Germany have been tipped as hotspots for commercial property investment by Capital Economics.

    Ed Stansfield, a property economist at the firm, said that France, along with the Nordic countries, stands out in terms of economic conditions and pricing.

     This means investors could be advised to keep an eye out for Midi-Pyrenees property listings and Provence-Alpes-Cote d'Azur property for sale.

    "Germany, from a purely top-down macroeconomic performance point of view, is going to be one of the best performing economies in Europe over the next couple of years," Mr Stansfield added.

    "A lot of the data would suggest that the correction was very modest and therefore there is not a lot of potential for an upswing but, as a solid income producing investment, I think German property has got some attractions as well."

    Mr Stansfield added that investors should be wary about buying property in nations which have an unstable economy at the moment.

    Recent research by the Royal Institution of Chartered Surveyors highlighted that real estate professionals in 14 out of the 25 nations it surveyed thought that the number of distressed properties coming to the global commercial property market will continue to grow over the next three months.
     

  • Overseas property searches still up on 2009 figures despite drop


    The number of people searching for homes and properties overseas dropped by an average of seven per cent between May and June 2010, recent data showed.

    Despite the drop, international property searches were still up by an average of 138 per cent compared to 2009's figures according to statistics released by Primelocation.com.

    The biggest increase came from those looking for a home in the United States, which saw a 192 per cent increase on searches over the 12 months from June 2009 to June 2010.

    While the top five destinations, including Spain and France, saw property searches tail off for a third consecutive month, UK movers searching for homes in the United Arab Emirates rose by five per cent on May's figures.

    Primelocation.com's international development manager, Ann Wright, said: "June is traditionally a quieter month for both the domestic and international property markets and this year has proved no exception."

    A survey conducted by Rightmove.co.uk revealed last week indicated that the majority of British homebuyers expect the UK market to maintain or increase its current level over the next year.
     

  • French property restoration opens new doors for owners


    A sculptor and his wife have restored a beautiful property in France, near the medieval town of Uzes.

    The Languedoc home of David Horsman and Celia Indsell, which is full of their artwork, now has a sandstone floor which they shipped from India, the Telegraph reported.

    A quarter of the house had fallen down when the couple bought it for £160,000 in 1999.

    "David's family had long owned a holiday home nearby so we knew the area well, but were lucky to find something that was isolated yet close to towns and only 40 minutes from Nimes airport," Ms Indsell told the paper.

    The couple added a 120 sq yd colonnaded terrace to the 17th century property, some of which dates to Roman times.

    From the upper floor, where the master bedroom's ensuite is located, panoramic views can be enjoyed.

    According to a study carried out by Easyroommate.co.uk, France tops the house investment list.

  • Income drives European property market


    The European property market is driven by income, according to a new report.

    Invista Real Estate Investment Management's research discovered that over the last two years, the European property markets have continued to deliver attractive income returns, Property Magazine reported.

    The income return on global information business IPD's Eurozone Index increased from 5.1 per cent in 2007 to 5.6 per cent at the end of 2009.

    This is its highest level since 2003 and was able to cushion the impact of declining capital values.

    As interest rates are expected to remain low in the short term, Invista expects to see an increasing amount of investor capital seeking income-producing property investments.

    "Taking into account the subdued outlook for rental growth across Continental Europe, we therefore expect investors to remain focused on preserving and enhancing income returns at their currently attractive levels, and thus are unlikely to be attracted to higher risk, capital growth investments," Tim Francis, director of continental European strategy and research at Invista, commented.

    Invista Real Estate Investment Management is the largest UK-listed real estate fund management group.

  • Price growth in French property market could be a catalyst for further rises


    Individuals looking at Aquitaine real estate listings may be interested to hear that prices in Bordeaux climbed 2.5 per cent during the first quarter of 2010.

    In addition, Lille, Lyon, Toulouse, Nice and Paris all experienced appreciation of property values during the period, the Chamber of Notaries has revealed.

    The body believes that these strong increases could be an early sign that the French real estate market is about to experience further sharp rises.

    In particular, Paris has been singled out as a destination where growth of around ten per cent may occur, with demand driven by older homes in the capital city.

    Currently, investors looking to buy real estate in the French market will be able to capitalise on the strength of sterling against the euro.

    John Busby, director of Athena Mortgages, said that the current return on investment for many individuals buying property in the country was "impressive".

    "The pound is at a 19-month high against the euro and the horizon for rate increases still seems a way off and mortgage rates remain at their historic lows," he added.

  • French leaseback likely to tempt investors


    The number of investors looking to purchase French leaseback properties is expected to rise steeply in the coming months, it has been claimed.

    Speaking to Overseas Property Professional, Athena Mortgages has predicted that the product is likely to benefit from the introduction of a number of 100 per cent mortgages.

    Previously, the news provider claims that UK-based investors have found it difficult to secure leaseback properties in the country because of strong competition from native buyers.

    However, the new products are expected to raise interest levels in the market from overseas property buyers.

    Athena Mortgages director John Busby claimed that the "higher level of loan-to-value means there is very little money to transfer to France to complete the purchase".

    "The developers I have spoken to expect demand for their leaseback properties to increase dramatically over the next few weeks as news of these finance products filters out," he added.

    Individuals may want to look at Aquitaine real estate listings for their ideal leaseback property, with the region home to the popular tourist and wine-making destination of Bordeaux.