Being one of the closest countries to the UK, France has always dazed the British property investors in every sense of the term. Historically, culturally, and politically, France has always lured investors from all over the world with its prized natural possessions spread across the country.
The nation better known as the love capital of the world has several things in its favour, which make it the much-desired property investment destination in the world today. As they say, there’s something about Paris that keeps you hooked on the nation’s capital. Perhaps, there’s no better place to spend a romantic break than in the city of the lovers.
Property Market in France
After experiencing a recent lean patch, the property market in France is once again in favour with the British investor. As one of the most sought-after destination for commercial and industrial powerhouses, the country has always remained one of the best investments for business and commerical property.
Paris is also one of the hottest fashion destinations in the world and as such property in the capital city definitely commands a premium. Indeed, according to a recent survey, Paris has become out of bounds for the average property investor. But small investors need not worry as they can still find suitably priced properties throughout the picturesque French countryside and coastal towns.
Since the property market is going through a transition phase in France, an intelligent investor can strike an interesting deal even in some of the major towns and cities of the country. To give you a price indicator, you can grab apartments in Languedoc Roussillon starting from GBP 40K. But you’ll still need to spend in the upward range of 50K+ for a decent flat in the Var region of Provence . However, closer to Paris, you can lay your hands on comfy apartments in Ile De France for a little over 40K. Alternatively you could consider a mobile home in France starting from 13K already sited.
Coming back to the alternatives to Paris, prospective investors are well advised not to just hook on to the capital city, as there are lots of other cheaper and viable options available all around the countryside. The country cottages in the rural settings, or ski chalets in the mountains are an immediate turn-on for the tourists, and offer the best investment if you are looking for a steady regular rental income from your property investments in France.
Even other prominent areas, like the Cote d’Azur are getting increasingly out-of-bounds for the average property buyer. Similarly, the cities along the French Riviera, considered as the millionaire’s playground, are just too expensive for an average property investor. However, if you are an above-average investor, then these places should be an automatic choice for any kind of investment.
Overall, the natural choice of property investment in France include the resort properties all along the coast, the Alps, residential property, apartments, villas, and mansions in major cities, like Paris, Toulouse, Monte Carlo, and Nice – and business and commercial property in and around the capital city of Paris.
And here is a tip for any prospective property investor looking to buy a property in France. The majority of French nationals speak and understand only French. So, it’s an added advantage if you polish up on your French before investing in the country.
Why the British love buying property in France
Though France attracts investments from all across the world, it holds a special place of pride among the British property investor. Here are some of the reasons for this favourable trend -
- Both the country’s are founding members of EU and enjoy considerable mutual goodwill among the people.
- Regular flights from low cost airlines between the two countries makes the countries easily accessible.
- Who can overlook the undersea road tunnel the Channel Tunnel that runs between the two countries and the Eurostar high-speed rail system?
- France offers the closest and one of the globally recognised holiday destinations in the world for the British with coastal and mountainous resorts beckoning the property investor from all walks of life into France.
- French food and wine (not to mention Champagne!) is just too good to resist.
- French Leaseback Property option is a great incentive for the British investor to cash in on the property boom in the country.
- France offers better rates of returns on real estate property both for short-term and long-term investors. All it requires is the fulfilment of certain legalities and you are the proud owner of a French property.
- France is a fashion powerhouse and offers one of the best standards of living in the modern world.
- Regular tourist influx to boost rental income from the property.
Property Abroad’s directory Les Calvert writes interesting and useful articles on all subjects dealing with overseas investment property and buying property in France. Visit their website to view their property for sale in France and other useful information on buying property abroad.
www.proprietesparisiennes.fr Lying in the area around Montpellier (40mn in the north) in the piedmont of the Cevennes mountains, these two rural, residential properties were once ruined hamlets. Now fully renovated and habitable with 1015 m² of living space, the property offers 5 natural spring water sour ces, including 2 deep bored wells. The land covers 450000m² and offers spectacular views of the Cevennes mountains. Features include: all basic utilities, double garage, plunge pool, ADSL broadband connection, Satellite TV, Electric heating, space for a helipad, terraced gardens, Jacuzzi, Sauna, and covered roof terraces.
Although prices have slightly decreased over the last few months in the French Capital, it is more a symbol than a real downturn; it is indeed a 1% slow down and the quarter to quarter difference remains positive, amounting to +2.6%. As a result, one square meter now costs € 6,283 while it was worth € 6,362 during the second quarter 2008.
We can consequently still refer to Paris as one of the most secure property market in the world. The city still ranks European leader in terms of security of investment indeed and is still known for being a global access point for European property investment. The Parisian market is still marked by a relatively rare offer in the most sought-after areas. What may explain the fact that the credit crunch did not hit Paris as violently as London, for example is its greater sectorial diversity.
However, the tendency is not the same in central Paris as in the suburbs. Since 2007, the property market in Paris has been a two-tier system indeed. Last April, the suburbs were lacking of buyers whereas prices in the centre increased.
In July this year, the 6th arrondissement (district) of Paris was the most expensive one, with prices amounting to € 9,790/ m2 and with a +14.4% quarter to quarter increase. Five months later, this area remains the most expensive and prices have even increased, on the contrary to the whole capital tendency. Property prices now reach more than € 10,000/ m2. As a consequence, good quality properties, with no refurbishment work can be bought for between € 12,000 and € 13,000 in the area.
The cheapest Arrondissement remains the 19th with € 5,050/m2 (half the 16th arrondissement prices!) and the one who had the weakest quarter increase is the 18th Arrondissement with a 6.5% increase and a € 5,450/sqm.
Paris is known as the city of romance and is one of the most cosmopolitan and busy cities in the world. The architecture is beautiful, the restaurants are legendary and you’d struggle to find a city that was brimming with as much culture.
In terms of property for sale in Paris, you’ll find that prices can be on a par with London and space is just as much at a premium, especially in the centre of Paris. However, what you lack in space in Paris you more than make up for with grandeur. Many properties in Paris overlook some of the most famous landmarks in the world, such as the Eiffel Tower, the Arch de Triumph and the Louvre.
Just like London, Paris also stands on the side of a river, the River Seine. Network links within the city are excellent, with easy access to the airport and train stations provided by the Metro.
One of the best aspects of owning a property in Paris is the rental potential you could earn from letting it out to tourists. Property for rent in Paris is sought after all year round, rather than just the summer months, so you’ll never have to worry about downtime with your investment.
Just like London, Paris also stands on the side of a river, the River Seine. Network links within the city are excellent, with easy access to the airport and train stations provided by the Metro.
One of the best aspects of owning a property in Paris is the rental potential you could earn from letting it out to tourists. Property for rent in Paris is sought after all year round, rather than just the summer months, so you’ll never have to worry about downtime with your investment.
www.proprietesparisiennes.fr This magnificent chateau lies in the Aquitaine region of France near the city of Bordeaux. Centred in a 3ha walled estate, the renovated property features materials that are both authentic and luxurious. The chateau itself has 9 bedrooms and 7 baths as well as multiple reception rooms and two outbuildings to maximise available entertainment space. Additionally, the chateau offers a heated indoor swimming pool and is surrounded by a well planted and varied landscape.
Even though house and property prices have seen dramatic declines lately in some countries, prices have been steady in France. In January 2009 there was a slight increase (0.6%) compared to December 2008. And unlike in certain other countries, France is not experiencing any large property reductions. As Paris is still being referred to as one of the most secure property markets in the world, now would be an excellent time to see what types of property are available in the most visited capital of the world.
Average property prices in Paris
The first eight districts of Paris are very popular districts to live in. According to the Notaires de Paris data (similar to the land registry in the UK), the average property price for a 2-bedroom 60m2 apartment in the first district of Paris is €500,400, in the second district €445,800, 3rd district; €445,800, 4th district; €555,000, 5th district; €469,200, 6th district; €602,400, 7th district; €585,600 and 8th district; €478,200. Sextant Properties can offer you a 2-bedroom 63m2 apartment with views overlooking the courtyard in the 2nd district of Paris for €349,000 (Ref. 17795). Also in the 2nd district they can offer you a 2-bedroom 73m2 fully renovated apartment with a large living room for €470,000 (Ref. 13608). Have a look at this 64m2 apartment situated on the 1st floor of a Haussmannien building located in the 3rd district of Paris for €466,000 (Ref. 16741). There is also a beautiful 82m2 character apartment with exposed beams, stones and half-timbering in the 3rd district for €550,000 (Ref. 13615). In the 4th district Sextant Properties can offer you this 1 bedroom 62m2 apartment close to Notre Dame for €515,000 (Ref. 16741). The most sought after district of Paris to live in is the 16th, located on the right bank of the river Seine it is the richest part of Paris. The average property price for an 80m2 apartment in this district is €592,000. If you want to live a little further out from the centre of Paris then the 19th and 20th districts could be for. The average price for an 80m2 apartment in the 19th district is €388,000 and an 80m2 apartment in the 20th district is €404,800. Sextant Properties can be the first to offer you some new build apartments in the 19th and 20th districts. In the 19th district there is a 4-bedroom 126m2 apartment for €874,000 (Ref.14333) and in the 20th district there is a 2-bedroom 61m2 apartment for €415,000 (Ref.13058).
Why is it appealing to invest in Paris?
According to the latest tourism office figures, Paris is the number one tourist destination in the world with 27 million tourists per year. A lot of tourists prefer to stay in rented accommodation if they are there going to be staying for several weeks or months as it works out cheaper than staying in a hotel. With a population of over 2 million inhabitants, many Parisians prefer to live and work in the centre of Paris as they spend less time travelling to work (some people spend 4 hours commuting every day). Due to so many tourists and Parisians renting property in the capital, the rental property market in the centre of Paris will always remain strong. If your property is well located and in a good condition you can easily rent it out. A few years ago there was a joke from The Guignols on the Canal+ channel (the English equivalent is the Punch and Judy Show) which showed a landlord asking for an endless list of documents to be able to rent an average apartment in the centre of Paris (it was intended for adult’s eyes only!)
To conclude
Paris is the best place to invest in France as there will always be people wanting and needing to rent property. It is the world’s 5th largest economy and has been one of the top host countries of foreign investment for many years. Centrally located in the heart of the country and Europe, Paris can offer a skilled workforce, a high quality of living and competitive business advantages. It is a mature investment market that can guarantee good yields for the future.
London and Monaco are Europe’s most expensive cities for residential property buyers. Prices in the Baltics have risen to the same level as capitals such as Copenhagen, Berlin, Munich, Stockholm, Vienna, and Frankfurt.
High rewards await property investors in some parts of Europe, according to the Global Property Guide, a residential real estate research organization (www.globalpropertyguide.com). Rental yields for apartments in several Eastern European capitals are above 10%.
Rental apartments in Moldova’s capital city Chisinau can be expected to yield annual rental returns of around 14.13%; in Poland’s capital Warsaw, 13.28%; in Bulgaria’s capital Sofia, 10.56%; and in Slovakia’s capital Bratislava, 10.06%. The higher risks of Eastern Europe may be a factor in these returns (corruption, political instability, etc).
But risks are not the only factor. The Global Property Guide believes that the relatively recent arrival of the market economy, high interest rates, and relatively undeveloped mortgage markets, largely explain the low prices in the east. To illustrate, it would surely be hard to label the historic city of Bratislava, Slovakia, as a high-risk location, yet the rental income returns are excellent.
Western Europe generally suffers from another, different disadvantage: High taxation. There are high rental income returns to be earned in Amsterdam and Paris (8.25% in both), in Munich (7.80%) and Brussels (7.53%). But all four cities are high tax environments (but so too is Poland).
Property in Prime Central London returns surprisingly high rental yields, at 7.13%. Note that this “Prime” category encompasses relatively a narrow group of super-luxury apartments in absolutely prime areas (Belgravia, Chelsea, and Knightsbridge). The high returns in these select super-central locations contrast with the significantly lower rental yields (5.79%) available in Central London’s other luxury areas (Kensington, Bayswater, Notting Hill Gate, St Johns Wood, Highgate, Islington, Highbury, and Primrose Hill).
Europe’s most expensive cities
The tiny principality of Monaco is the most expensive location to buy an apartment in Europe at around €24,900 per square metre (sq. m.).
Closely on its tail is Prime Central London, where 120 sq. m. super-luxury apartments can cost £1,170,000 (€1,742,656) or £9,750 (€14,522) per sq. m. Apartments of 120 sq. m. in other luxury areas of Central London are likely to cost £580,000 or £4,833 per sq. m. (€863,880 or €7,199). The large difference is explained by London’s highly segmented top-end market, with super-luxury apartments in absolutely prime areas commanding considerable premiums.
Paris and Amsterdam follow London. A 120 sq. m. apartment in either of these cities has an average purchase price of €800,000 (€6,667 per sq. m.).
Moscow is Europe’s sixth most expensive capital for buyers of residential property. And though apartments in Moscow can be rather rewarding for buyers in terms of rental income returns, investors should be aware of the high risks (purchases are cash-based, and the authorities can suddenly turn hostile).
Dublin makes an appearance among Europe’s most expensive cities in 10th place, with a high end 120 sq. m. apartment on average costing around €600,000.
The Baltics, till recently Europe’s hottest residential investment destination, are now expensive. A high-end apartment in Central Vilnius, Lithuania will cost on average around €3,792 per sq. m (€455,000 for 120 sq. m.).
Latvia follows closely with high-end apartments in Central Riga costing an average of €3,020 pr sq. m. Rental yields in the Baltics have also dropped to very low levels.
There are still some very inexpensive capitals in Europe. Berlin, in particular (€3,167 per sq. m.), is now experiencing inflows of foreign money in response to its relatively low prices.
Even less expensive are:
Slovakia’s Bratislava (€1,292 per sq. m.)
Poland’s Warsaw (€1,175 per sq. m.)
Macedonia’s Skopje (€1,125 per sq. m.)
Moldova’s Chisinau (€917 per sq. m.)
Rental returns cannot fall forever
As 2007 dawns, rental returns are lower in most locations than they have been for 20 or more years.
Nowhere in Europe are rents keeping pace with the continued strong rise in property prices. Residential real estate prices are at historical peaks in almost all countries in Europe, except Germany and Switzerland.
This is cause for concern. At the Global Property Guide, we informally consider a danger signal to be rental returns of around 4% or below.
Several European capitals offer rental income yields around or below this 4% level. In example is Madrid, where rental returns are now at only 3.15%. Rental yields in Monaco are the lowest in Europe at around 2.43%.
It is simple to hire properly in Paris, when you can go on with way and know several elementary rules characteristic for Paris. Living in a convenient and good furnished apartment in Paris, you have a true taste of Parisian way of life, and understand the historical and typical character of the area of your choice, its museums, monuments, cafes, and strolls in parks. Parisian Rent in to a price suiting your budget and stay in the historical hub of the city, about 1st-8th area, and the Montmartre area, “la vie en rose” is located there… But you should know that tourist’s areas are very demanded, so you need to arrange a more essential budget. But when you seek for an apartment on some specialized sites, you must be capable to locate a good price-district proportion. The most demanded areas are distinctly St Michel, St-Germain, Le Marais, then the Beaubourg les halles and Louvre, followed by the Champs-Elysees and the Invalides, and certainly the great Montmartre area.
You may easily hire an apartment in the city to a reasonable price, which would provide you with the opportunity to delight Paris. In compared with a hotel, short-term hire in a furnished residence is very cost-effective from two people and for more than a couple of days.
Perfectly located, every Paris vacation rental is completely renovated and beautifully furnished. Our Paris apartment rentals offer spectacular views for a memory of a lifetime. Ideally located in the heart of the Left Bank, are steps from major landmarks, monuments and the beautiful Seine River. Our Paris vacation rentals are surrounded by cafés, restaurants and shops in the center of Paris.
Eddie Caverson is one of the best writers being published in small internet editions. At the beginning of his career he wrote essays, annotated bibliography and articles. If you are looking for some help in writing essay paper and essays online, he is the one you need!
The figures come from the Chambre de Notaires of Paris and INSEE (French national statistical office) in their regular quarterly report on the property market in Paris and the Ile de France.
The fall of 4.2% in the second quarter compared to Q1 was one of the largest on record, but as it related to sale contracts signed during the economic whirlwind of the winter of 2008 and early 2009, it is probably not that surprising.
On an annual basis apartment prices in Paris are now 7.1% lower than a year ago, with an average price of €6060m², a level equivalent to that observed in mid 2007.
Inevitably the falls have not been uniform across the capital, with double digit falls being recorded in the 15th, 19th and 20th arrondissements, but falls as low as 2.2% in the 5th arrondissement.
Highest prices are to be found in the 6th arrondissement (€9600m²). The area also observed one of the lowest fall in prices of 5.4%, thanks in large measure to the significant presence of international buyers who represented around 25% of all sales.
Paris Property Sales Activity
Although sales rose over the first quarter in comparison with Q1, they remain at a level not seen since the mid 1990s.
As there was an almost complete collapse in sales in the first quarter of 2009 it was almost inevitable that there would be some recovery in the second quarter.
The notaires report that most activity is at the lower end of the market amongst first time buyers rather than existing owners.
Accordingly, the analysis of the fall in prices is inevitably going to be skewed towards the cheaper end of the market, as there are simply not enough transactions of more expensive properties to clearly understand just what is happening to prices.
The notaires report that on the basis of provisional figures for July, the recovery in sales is continuing.
‘The small signs of a recovery observed in the Spring should translate during the third quarter in the volume of sales, and lead us to think that prices will not collapse’, say the notaires.
They forecast that prices in the capital will fall by around 9% in the year over those in 2008, suggesting that much of the price reduction has already taken place.
Over the past ten years apartment prices in Paris have tripled.
Ile de France
Within the Ile de France region the fall in house prices has been greater.
Prices in the ‘Petite Couronne’ immediately around Paris fell by 2.8% in the quarter (13% annually), while in the wider ‘Grande Couronne’ they fell 2.4% in the quarter (10.8% annually).
House prices in the Petite Couronne now average €307,100, while those in the Grande Couronne €257,300, the same level as they were in 2006.
Once again there have been some spectacular differences between the various communes. Thus, within the Petite Couronne price falls of around 30% in a year have occurred at Nanterre, Villmomble and St Maur des Fosses, while in Champigny sur Marne they have been kept to an average of 8.2%.
Within the Grande Couronne prices remained stable at Villeparisis, while they fell by 18.9% at Cormeilles-en-Parisis and by 17.4% at Corbeil-Essonnes.
Other Regions of France
At the same time as publication of the report on Paris, the notaires and INSEE also published some figures on the property market elsewhere in France, although the research is less comprehensive than for Paris.
In their report the authors state that property prices fell by 2.3% in the second quarter, following a fall of 3.8% in the first quarter.
This means that prices are down by around 10% over a full year, a figure which is broadly in line with the annual fall recorded by the national association of French estate agents, FNAIM.
Learn more in http://www.french-property.com/news/french_property_market/property_prices_paris/
