Invest in France
France continues to attract
The ‘hexagon’ remains the world’s leading tourist destination with 85 million visitors in 2014, of which 31 million alone went to Paris. These figures testify to the attractiveness of the country. Adding to this is a favourable economic environment for investment in luxury real estate. Three factors are responsible for this upturn in the market:
- Parity between the euro and the dollar. Foreigners were able to make a huge return on investment in this market. Russians and Chinese are less present and give way to the return of English-speaking clients who are often Americans, and to whom the exchange rate has again become interesting.
- Historically low interest rates that have been around 2% since the beginning of the year. French buyers on the other hand are less cautious and do not hesitate in acquiring high-end property.
- A steady decline in prices has led to the return of buyers who are eager to invest and do profitable business in Paris.
This is the time to buy!
In the past three years in France, prices have indeed fallen in luxury real estate even though Paris has resisted better than other places. Prices seem to have currently stabilised at low rates, but buyers have the upper hand and by negotiating well, can achieve very attractive deals especially as interest rates remain particularly tempting.
According to calculations made by the ‘Institut de l’Epargne Immobilière et Foncière’ (IEIF), the conditions for investing in real estate are extremely favourable. Between 1998 and 2013, return rates of 10.1% per year showed that real estate was more profitable than any other investments, be it shares (+4.9%) or bonds (+3.7%).
With the first criteria of selection as quality of the given property, buyers tend to favour the French Riviera, Provence and Paris. These are three well-known areas where the JV Pastor - Real estate team can guide you in your investment choices.
Selling or looking to buy in France, contact us.
Source: Proprietesdefrance.com, October 23, 2015 and architecturendesign.net