Key reasons to invest in French real estate
Buying property in France can be an investment not only in tangible financial assets but also in your lifestyle. That goes whether you are moving to France long term or buying a holiday home.
Many factors make France a charming place to own property. France is famous for the quality of its lifestyle, its landscape and temperate climate. Add to that the affordable property market and high tourist volumes and your French property offers real investment potential.
The French lifestyle and culture
More than anything, the French enjoy a high quality of life. Along with their sociable, laidback lifestyle, they treat work as an end to a means, rather than the common ‘live to work’ approach. This means the work-life balance in France is healthier than in neighbouring countries.
The country is also synonymous with romance, art and culture, attracting buyers from all four corners of the world. Owning a property in France allows you to immerse yourself in its rich history, gastronomy and artistic heritage.
Attractive property market
French property prices have been stable for some time now and prices remain largely affordable for your average family home. France offers a huge variety of property types, from country farmhouses to city apartments and coastal villas, which vary in price due to location, size and build quality.
However, the French countryside remains a favourite for international buyers. [2] There, an older detached home, such as a longère or maison de maître, could be yours for €130,000. Meanwhile, a refurbished traditional village home could cost as little as €80,000 or substantially less for one in need of work.
However, if you’re looking to buy a luxury property, France has a range of options to suit from Montpellier to Paris. Savills Prime Residential Index for second-home locations found that the Côte d’Azur was the most popular spot for European sun in 2023 because of its top-tier property, natural setting, transport links and climate.
Investment potential
Property in France offers significant investment potential as it welcomes buyers from across the world. As there are no restrictions on the property types available to international investors, the market caters to various investment preferences and strategies. Beyond standard residential options, you’ll also find unique properties such as châteaux, farmhouses, and vineyard estates, which appeal to renters and buyers alike.
There’s also a huge market for tourism accommodation in France. According to EU data, France attracted an average an excess of 10 million visitors per month, creating demand for short-term rentals and touristic opportunities.
Over the last few years, the French property market has seen some fluctuations in house prices, but overall values remain steady. This stability ensures investors have opportunities to sell their properties at favourable prices when needed. [3]
Pleasant climate
A large proportion of international property buyers in France choose to buy property by the sea to benefit from the endless summer sunshine and coastal breeze. On average, France enjoys around 2,000 hours of sunshine each year, with the warmest departments being on the south coast (Marseille, Corsica, Nice and Montpellier). [4]
There are regional variations in France, which property buyers should consider. Generally, regions north of the Loire River have a climate similar to that in the southern part of the UK.
The Atlantic coast offers a good compromise weather-wise. Areas like Pays de la Loire and Brittany receive plenty of sunshine during summer and their mile-long beaches attract foreign buyers.
Drawbacks to buying a property in France
While it seems the benefits far outweigh the disadvantages, buyers should be aware of potential “cons” of buying property in France.
In recent years, France has experience flooding in some regions, which buyers should consider when browsing locations. Climate events like flooding and heatwaves have driven an increased demand to northern areas like Brittany and Normandy, where the climate is a little more predictable. [5]
For investors planning to rent out their property in France, be aware that rental income is subject to taxation. Non-residents must pay Impôt sur le Revenu des Non-Résidents (IRNR) on their gross rental income. Those renting out property in France should also be aware of limitations regarding short-term lets in France, especially in popular tourist locations like Paris. [6]
While the French property market tends to be stable, it’s not immune to economic fluctuation. Buyers should be aware of potential market volatility.
- Federal Reserve Bank of St. Louis https://fred.stlouisfed.org/series/QFRR628BIS
- Savills https://pdf.savills.com/documents/Prime+Residential+Index+-+World+Second+Home+Locations+2023.pdf
- DLA Piper Real Estate Investment In France https://www.dlapiperrealworld.com/export/sites/real-world/guides/downloads/France-Investment-Guide_2019.pdf
- FranceToday
- French Entrée https://www.frenchentree.com/french-property/buying/predictions-for-the-2024-french-property-market-from-french-property-news-editor-karen-tait/
- Houst https://www.houst.com/blog/short-term-regulation-paris