Investing in France
Reasons for Investing in France
Most of international investors (about 67% according to BNP Paribas International Buyers) buy to retire in France. They are looking for a better climate in the south of France or a nice place to live in Normandy for example. The security and the profitability are very important for this kind of customers. France can give an interesting answer to these problems.
Despite the crisis the proportion of international buyers is still rising in France. In Paris, they were 7.3% in the second quarter and 7.9% in the third quarter. This market seems to be very attractive for non-residents.
France is the only Mediterranean country which has remained popular for British investors with sales rising 19 per cent compared with five years ago, according to holiday home insurance provider Schofields for The Telegraph. In Italy, purchases are down 42%, still compared with five years ago, and in Portugal sales have dropped by 31%.
International buyers are nervous about the real estate market in Spain, Portugal and Italy. Because of the crisis it might be difficult for investors to sell their property if needed. Moreover it is more difficult to obtain a property loan when you are a non-resident in these countries. The banks are more reluctant.
French Mortgage Rates
Attractive Mortgage Rates in France
Getting a French mortgage is much easier. Moreover the rates are very low. For British investors, France is nearer and has good transports links such as the Eurostar. France inspires confidence for foreign investors. The banks are solid and the economy is more competitive than the others Mediterranean countries. France is a “safe” investment country.
The investment could be very profitable for international buyers. The French housing market remains strong The prices are still high particularly in the south of France and in Paris. For instance, in Nice the highest prices could be around 7000€ per sqm for an apartment and around 8600€ per sqm for a house. In Paris, according to Notaires de France, the average price for an apartment is around 8260€ per sqm. In famous places or big cities such as Paris or the French Riviera, the demand remains important. International buyers could easily sell back their property.
