Investing in the best property can give a long-term profit. Especially in a place like France, it is indeed beneficial whether it’s for a new home or renting purpose. However, getting property in France as an outsider can be difficult, but not impossible.
France is one of the popular tourist destinations. It has the world’s top iconic landmarks, architecture, art, ski resorts, food, wine, and other attractions. It’s no surprise why many of you want to own property in this country.
Meanwhile, before investing, you should consider some facts to benefit from the market. So, here are the 5 things to look for when investing in property in France.
If you want to invest in a French property, the South of France will be an excellent choice. It’s because the property price is lower than that of in US or UK. When compared with the price of a single bedroom flat in the UK, you can get a luxury villa in the South of France.
The property prices are still below the 2006 market peak price. In fact, it had dropped to 0.1% in 2020 compared to the previous years.
So, if you’re interested, find a Mougins property for sale as per your price range. Mougins is located in the Southeast of France with easy access and benefits from all popular events like the Cannes film festival, Monaco Grand Pix, etc. These make its real estate market quite rich. So, it won’t be difficult to find your dream property in France.
2. High Rental Yield
Investing in a French property is always profitable when you rent it. You can get the best yields, whether it’s summer or winter.
During peak times like holidays in summer, tourist searches for rental locations. On the other hand, people who visit France to enjoy the Sun warm in winter also look for long-term rentals.
For example, the peak tourist season in Saint-Tropez is summer (July to August). It has stunning beaches perfect for surfing and exclusive private beaches with amazing facilities. So, if you want to earn a fair rental yield, look for Saint-Tropez real estate for sale.
3. Housing Market Stability
The housing market in France is stable and firm. It’s due to the fixed rate of repayment mortgages that keeps the housing market robust in France.
Though during the coronavirus outbreak, the prices might get lower, it’s again rising. For instance, the housing property value in Lyon has increased by between 10.1% to 11.2% in 2020.
According to France’s latest real estate report, house prices will keep growing by +3.5% throughout 2021. Additionally, the property transactions will carry on at a level of 950,000 for the rest of the year.
4. Increasing Property Price
With a large number of immigrants coming to France from Germany, UK, and other North European countries, as an investor, you can get long-term benefits. As they’re searching for permanent housing options, the perfect location will be oversubscribed.
If you think deeply about the next 10-year projection of France’s property market, you’ll get the picture. Whether you rent the property or sell it, you’ll be benefitted both cases. The reason is increased price due to high demand. The more the audience and buyers will increase, the property price will also rise.
Despite a difficult situation in November 2020 due to COVID-19, the French property market price continues growing. In fact, the government has given €100 billion to accelerate the French economy after the pandemic crisis. The aim is to return the economy back to its pre-crisis situation by 2022.
The package includes:
- €30 billion to build homes more energy-efficient and invest in environmentally friendly industries.
- €35 billion to raise youth employment.
- €35 billion to reduce taxes on funds or productions to help companies to scale up from crisis.
If you take a look at these five things, you’ll understand that investing in a French property is better than in other parts of Europe. Furthermore, tourism is an additional source to earn profit. So, if you want a long-term investment opportunity, France will not disappoint you.