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Buying a house for private use or as an investment are two completely different things, taking into consideration different criteria.While a good investment potential is assessed according to income from rent or income from long-term capital, a person buying a property for living will take a decision based on other criteria, such as the presence of furniture, facilities and other aesthetic aspects. Those who seek low prices and high income might find out that France is a country not only for investment but probably buying a second house and a new way of life.

The highest rental income in France is in touristic areas and big cities. Some budget airlines connect France with other European countries and France encourages tourists to spend their vacation here. Investors hoping to get a return on invested capital should consider Paris, the capital of the country, or property in tourist resorts. The majority of French nationals rent out their houses and the rental property market in France is very healthy due to prosperous tourism business. The rental property market is very strong and thus good income can be earned. However income might change according to different regions and requirements.
  • At the present moment capital growth in France is within 10 % a year. Although this figure is lower than in many other newer competitive markets, French property indeed offers stable growth and safe reliable market to invest capital.
  • Prices in France are much higher than ten years ago and even some years ago, but there are some regions in the country, where everything is still possible.
  • Living costs in France are quite reasonable compared to Great Britain, especially in the countryside.
  • Most of the French beauty is still unspoilt and many people still prefer the mild Mediterranean way of living and a relaxed attitude towards life.
  • The size of the country implies a huge variety of property.
  • Rental potential from investments is available in the cities and many experienced buyers try to use it in their interest.
  • Good connections and easy access to the rest of Europe.
  • Also the country still possesses a huge potential in the field of tourism during summer and winter periods, a unique culture, and the main thing, moderate climate.

For many years France has been one of the countries with the brightest property market in the European Union. The prices increased significantly only for the last decade. The prices for new property has increased in average by 10% a year over the last decade, while more popular places, such as Cote d'Azur and Paris saw 20% increase.

However, there are reasons to suggest that such a huge increase in property prices is gradually decreasing. Growth of 15.5 % was registered in 2004 when the market was at its peak, while according to FNAIM, the prices increased by only3 %in 2007. According to global property, the south-east of France and Île-de-France region were the strongest markets in 2007. South-west of France was the least developed market in 2007.

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