France is composed of many regions, fiercely proud of their
individual characteristics, creating such a range of choice that it
is hard to decide on the one most suited to the prospective buyer's
needs. Almost all of France could be considered for second home
property or investment potential, either due to continuing trends
of reliable popularity or by the fact that a region is less
developed and less popular, thus offering more of a bargain and
possible greater investment potential. Key hotspots especially
popular with the British will offer reliable demand, although
prices will be higher, whilst less tourist-saturated areas are
likely to offer lower prices and a greater proportion of French
neighbours.
Normandy
With a convenient proximity to England, Normandy has long proved
popular with the Brits thanks to its improved climate and
surroundings that are not too dissimilar to that of England.
Coastal properties tend to reflect prices 30% higher than those
inland, fuelled by demand for sea views and easy access to
cross-Channel travel. A studio apartment in the more desirable
Cherbourg can be found from £65,000 ($127,500), whilst a two
bedroom house in the cheaper area of Manche can be bought for
£100,000 (£196,000).
Loire Valley
The Loire Valley has also proved popular over the generations,
with its myriad postcard-perfect châteaux, verdant riverbanks and
resplendent towns. Property in the area ranges from cheap shells in
need of renovation to modern comfortable homes more suited to
British standards. The average house price is around £209,600
($411,000). Provence and the Côte d'Azur prove highly desirable
year-on-year, with the French Riviera especially popular with
jet-setting millionaires. According to the 2008 Knight Frank Annual
Wealth report, St-Jean-Cap-Ferrat saw capital appreciation of 39%
in 2007, and has property costing an average £34,320 ($67,300) per
square metre, making it one of the most expensive residential
areas. Seaside residences can be found for considerably less
further west along the south coast, with a three bedroom off-plan
apartment in the reasonably-priced Camargue region costing from
just £115,000 ($225,500). Further inland into Provence, larger
properties can be bought for under £250,000: a large farmhouse for
£240,000 ($470,700), or a two bedroom villa with a pool half an
hour from Cannes for £128,000 ($251,000).
Wine Regions
For those who are keen to take on more than the average,
habitable property, bargain opportunities are cropping up in some
of the traditional vineyard regions due to a struggling wine
industry that has forced some winemakers to sell up. Period
properties, with and without a variety of land and vineyard
attachments and in varying states, are available. £203,000
($398,144) to £271,000 ($531,500) should buy you a habitable two or
three bedroomed property in the Bordeaux region, whilst prices can
head into the millions as hectares of land and outbuildings are
added. In the less developed but still easily accessible
winegrowing region of Beaujolais (north of Lyon) prices range from
£237,000 ($464,750) for a two bedroomed property to £305,000
($598,000) for a three or four bedroom house, to £312,000
($611,825) and over for large family houses.
Languedoc-Rousillon
As a popular French holiday spot and busy British retiree
destination, the property market in Languedoc-Roussillon is buoyant
due thanks to competition from French and British buyers. A
decent seaside apartment can be purchased for £100,000
($196,000) to £170,000 ($333,300); a village villa and pool can
cost from £240,000 ($470,560) to £300,000 ($588,180), whilst a top
end farmhouse and land would set you back £400,000 ($784,240) to
£550,000 ($1,078,200).
Paris
Having held the top investment rating for a number of years,
PriceWaterhouseCoopers' 2008 report on emerging trends in European
real estate now shows Paris slipping from the top spot to fifth in
terms of investment prospects, and sixth for development prospects.
However, the city still provides some of the best property
opportunities in France in terms of real investment as its market
is characterised by consistent demand and a severe shortage of
rented accommodation. According to Knight Frank's Paris office, the
resale market is very active because there is little new
residential development due to lack of space and tight planning
restrictions. Rental yields of 4% - 6% are generally to be expected
in Paris, whilst the many leaseback options available offer a
guaranteed rental return of 4.5% - 5%, and a VAT rebate of 19.6%.
Due to lack of space for new building, the new leaseback
developments are found within a 20 kilometre radius. In the 15th
arrondissement luxury apartments start from £190,000 ($372,460) for
30m and £553,600 ($1,085,223) to £633,000 ($1,240,870) for
70m.
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