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France Leads European Property Rebound with 40% Real Estate Investment

Although the real estate market in Europe has gone through a slump recently, the state of real estate in France has been continuously healthy even through all of the ups and downs. Despite the debt crises and housing bubbles, France property is predicted to experience a boom in 2011, thanks to some of the lowest interest rates in history and a shortage of supply in the Paris market. The five major cities in France, Paris, Lyon, Montpellier, Nantes, and Bordeaux, are all estimated to experience a 10 percent growth in the coming year. Investment volume in France rose 40 percent in 2010 to twelve billion Euro, and it is predicted to rise to around thirteen to fourteen billion Euro by next year.

Financing Conditions Lend Themselves to Investment

Experts are stating that the strong development of real estate in France is due to the enhanced financing conditions carried out by the French government safety net that was put in place to prevent the country's economic decline. As a result of this, recent investors in property for sale in France, especially in the Southern regions of the country, could borrow money at incredibly low interest rates. The average French mortgage has dipped down to 3.3%, which is a huge contrast to where it was at 5% only two year prior. Sales of France property in 2010 were nearly double what they were in 2009, with over 800,000 transactions all throughout the country.

French Properties offer Security

Foreign investors are starting to see France property as a more dependable option than other asset classes like bonds and equities. They believe that purchasing a France property will offer them more long term security through the ups and downs of the world economy. Also, French President Sarkozy has recently decided to eliminate France's wealth tax. This small detail can have a huge impact on the finances of someone who owns real estate in France by saving them hundreds of thousands of Euro on taxes.
 
Who is investing in Property in France?

At the moment, the biggest investors in property for sale in France are German buyers, who account for 19% of the total transactions. American investors are the second highest group at 6%, coming just ahead of British investors at 4%. For all of these groups, France has many appealing features. Not only are investors interested in the culture and lifestyle of this beautiful country, they also seek the warm climate and available tax breaks.
It is a testament to the strong economic climate of France that the property market has managed to do so well in a time when the rest of Europe is suffering from the recession.