As an already well established property location with a booming tourism sector, France continues to attract discerning homebuyers looking for a solid property investment market.
With average returns of 10% per annum and a highly successful rental market currently attracting yields of around 7% in some sought after locations. Investment property in France offers purchasers a lucrative and safe option. Due to excellent transport communications to France, including numerous budget flights, France now enjoys the prestigious title of the World’s number one tourist destination, with obvious repercussions on the real estate market.
Investors are reassured by this proven market place in which homebuyers and investors alike have enjoyed healthy returns on their investments over the years.
Why Invest in France?
- A favourable economic and political climate, along with many natural features makes France an excellent property investment location.
- Natural and Cultural Factors
- Easy access via direct budget flights from many international airports
- Excellent, modern transportation infrastructure and close, easy links with the UK and mainland Europe
- Geographical diversity and many natural and cultural attractions, making France so popular as a tourist location
- Modern European style culture akin to “back home”
- Chic, cosmopolitan atmosphere and culture in the livelier towns such as Paris, Nice and Cannes
- Beautiful rural towns and villages, also with that unmistakable French charm, that continues to draw visitors and expatriates
- Famous French cuisine, wine and lifestyle
- Economic Factors
Historically a strong and stable market in which to invest in property and all economic indications show this trend is set to continue - Modern, European culture with political and economic stability
- Long term residential property price growth at a very respectable approx. 10% per annum. No danger of losing money in a potentially volatile investment climate
- Net rental yields of around 7-10%
- Popular leaseback schemes offer tax incentives to purchasers, with minimum risk and guaranteed rental income.
- Ever increasing inward and overseas investment, while American expatriates are now exploiting the high value of the dollar
- Relatively low property prices when compared to most northern European countries
- Capital gains tax on housing recently halved to 16%. You are exempt if you hold your property for more than 15 years
- One of the most visited countries of the World with a correspondingly strong tourist market
- Easily accessed mortgage facilities, making it relatively easy to raise finance for a French property purchase
- Safe place to buy property due to a strict buying process and legal system
- Double tax treaty with France and the UK ensuring you do not pay tax twice
Let us help you to find the right property in Nice
Nice, capital of the French Riviera is home to some of the best investments in France. Property prices have increased by an average of 14.4% per year over the last four years, and a number of large infrastructural projects under construction are likely to drive prices further up. Though growth has slowed in 2008, due to the strict French lending laws we do not see a sub-prime crisis here so have not seen growth come to a halt like some other European countries. A strong, year round rental market and the opportunity to use the investment as a holiday home will continue to attract foreign buyers for the foreseeable future.
The Nice tramway has begun to rejuvenate the whole city, and will have a positive impact on property prices. In Bordeaux, a city which completed its tramway project in 2003, property prices rose by a staggering 40% over the following two years. In Dublin, a report into the effect on the LUAS tram project found that in the two year period since its completion, the value of property situated within walking distance of a tram-stop grew by an average of 17% more than the average growth in the rest of the city over the same period. Owners are already benefiting from the new tramway with its extensive pedestrianisation and the corresponding reduction in noise and pollution. Planning permission in France, unlike most countries, is very strict. Add to that the extremely limited supply of development land on the Riviera and you can be assured that your investment in Nice is both safe and secure.
Nice has a strong rental market, with a particularly strong demand in the summer. Long-term letting is a popular option during the winter months, with students, expatriates and locals as the main tenants. Average rents in Nice are the second highest in France, after the greater Paris region. Most buyers decide to rent out their apartments to tourists on a weekly basis. The yield on a weekly rent is roughly equivalent to one months rent on a long term lease. This option appeals in particular to buyers who wish to also use the apartment several weeks throughout the year. Apartments in Nice, depending on location and condition, can be rented at peak rates for as much as 35 weeks per year, reflecting the city's prominence as a year-round tourist destination.
Due to the financial crisis the prices of suitable holiday property in Nice have gone down, 10 to 15%, so now is the right time to buy, if you buy the right property.
We live in Nice, we are in the holiday rental business ourselves, and we know like no other what property offers the right perspectives. You want the lowest investment for the highest return, you want lots of satisfied customers, you want to be proud of your property. We can help you with that. We can advise you on the best strategies to maximise your investment, both financially and mentally.
Summary
It is clear that France is still a highly beneficial market in which to invest. Investors are cashing in on new niche markets that have recently sprung up at very affordable prices as these offer high returns on investment on both resale and rental options. And Nice will continue to attract foreign buyers for the foreseeable future.
Send us an email and get in touch: property@bellevueholidayrentals.com
