Buying for Investment

Buying for Investment

House prices in the Golden Crescent look likely to rise dramatically in the coming years. With property prices in the UK almost at their zenith, it makes perfect sense for investors to look to this area of Southern France. Prices for even the most glamorous of properties are still remarkably low, but will not remain so for long. One leading estate agent supplies the following information:

HOUSE PRICE INCREASES IN FRANCE

'It was certainly the case until a few years ago, that house price inflation in France was very low in comparison with the UK - indeed a 5% appreciation in value was regarded as exceptional. However, times change. There has been over the past two or three years a marked increase in interest in purchasing property in France from the UK. Housing in France remains cheap compared to the UK and is certainly cheaper than its main rival, Spain. Prices were given a boost by the introduction of the Euro where a lot of money hidden from the tax man appeared and was put into the housing market, but at the time it was thought that that would produce a one-off blip in house prices. This does not seem to have happened and house price inflation in France is now almost at English levels.

As always, there are particular areas of France where we are seeing big increases and one of our clients has drawn to our attention the area known as the "Golden Crescent" in the south, around Montpellier, where it seems as though the market is much as it was in England in the late eighties. There are many reasons why this particular area should be favoured; it is not only the English who are drawn to it but also other northern Europeans and, indeed, Americans. Furthermore there is significant inward investment in the area from companies such as IBM setting up major headquarters there. The client indicated that the situation was so bad (in July/August 2002) that queues were forming outside estate agents' offices before they were open and the particular agents that this client visited only had two properties on his books.'

Of course, property on the Cote d'Azur will always represent a sound investment, and we also have a considerable number of new homes around Cannes that are being snapped up as they are built. These properties represent outstanding value and will no doubt offer their owners an excellent return for their investment, as well as proving a lucrative source of rental income should you not choose to live with the 'Beautiful People' yourself!

Therefore, please feel free to contact us regarding your requirements. Should you wish to pay a visit to the region to see just what's available, we would be pleased to assist you on your arrival, and show you a selection of properties to suit your budget.