OPW KEY FACTS… FRANCE

“France continues to be the UK buyer’s most popular second home destination, attracting more interest than any other country.”

France has long been a popular second home destination and with 79.3 million overseas tourist arrivals in 2008, it is the most visited country in the world. Boasting Mediterranean and Atlantic coasts, glamorous cities and breathtaking scenery, it’s not hard to see why France remains a key hotspot for investors the world over.

There are almost three million second homes across France. The vast majority (91%) belong to the French while the rest have largely been bought by the neighbouring British, Swiss, Italians and Germans. The majority favour coastal properties (39%) but almost as many choose rural settings (37%) while 15% opt for holiday homes in the mountains. Historic properties built before 1915, with charm and character, appeal to the majority (40%) of both foreign and domestic buyers. With the exception of the Italians, most foreign buyers prefer spacious, detached houses as opposed to apartments. However, city centre properties remain popular with culture seeking holiday makers as well as offering investors buy to let opportunities in vibrant urban areas.

FRENCH GROWTH
House prices in France have seen extensive growth in recent years, almost doubling between 2000 and 2007. However, France has not been immune to global recessionary pressures. Official stats indicate that, on average, residential prices contracted by 11% between 2007 and 2009 and have subsequently started to plateau, remaining some 8% under their peak values. Paris continues to command the highest average prices in France, although almost 2% below 2009 prices. Versailles and St Maur de Fosses, also in the Paris region, follow the capital in achieving high average values. While the Paris area appeals to both French and international buyers, properties priced in excess of 2.5m EUROS tend to draw most interest from overseas. The historical centre of the city including Ile de la Cite, Place des Vogres, the Quais Anatole France and d’Orsay are among the most sought after addresses. On average, the highest achieved prices in 2009 have been in the fourth, sixth, seventh, and eight arrondissements respectively, where average prices range between 7,700 EUROS and 9,400 EUROS per sq m.

FRENCH HOTSPOTS  
There is no doubt the French holiday home market has been impacted by recessionary pressures and reduced confidence has led to low levels of transactions. Furthermore, where sales have been completed, prices have tended to be between 10-30% below their peak values. France is among the few markets where interest has reignited in recent months, in particular among cash purchasers looking to take advantage of moderated prices. Currently sales activity is concentrated in the south of France. The Cote d’Azur continues to attract cash rich lifestyle buyers from the UK and across Europe, notably Russia and the Commonwealth of Independent States (CIS.) The south west of France is attractive to British buyers as it offers lower values than on the Riviera. In particular the regions of Aquitaine, including Dordogne and Languedoc on the Med coast now offer some excellent buying opportunities. The holiday property market in popular ski resort Courchevel has increasingly been supported by buyers from Eastern Europe, although prices have gone down by an average of 15%.

France continues to be the European buyer’s most popular second home destination, attracting more interest than any other country. With close proximity to Europe, diverse natural beauty, heritage, culture, climate and abundance of beautiful properties; all these factors continue to make buyers look to France.