One of our UK partners, “Propspotter” has been reading the ‘Notaires de France January 2011 Report’. They have gleaned the following information from it.
“While the French Notariat is in the final stages of collecting the 2010 deeds of sale, the prices of property as a whole seem to have sharply increased.
The overall market has returned to the 2000-2007 volumes increasing from over 590,000 sales in 2009 and almost 800,000 in 2010. The trend is mainly due to the fact that property investment seems a safer bet than investment in the financial markets.
In 2010, the property market gained momentum, month after month, both in terms of price and volume of sales, ending with a flourish in December.
Between Q3 2009 and Q4 2010 in France, apartment prices increased 5.2% house prices increased 9.1% in the provinces in general.”
These comments corrolate almost exactly with our experience last year. Out of interest Propspotter have sourced the Chatel MGM development for us.
Whilst the growth in 2011 may not be quite as strong as 2010 (who knows but we live in hope), it looks as though France has made a successful recovery from the global downturn.
The Notaires de France report predicts that average price growth in France outside Paris will be between 3% and 5% in 2011, ensuring that tourist hotspots such as those favoured by Propspotter’s developers are likely to be up to double this.
With this in mind then projects like the one I have featured above should make good investments on many levels, not only do they offer guaranteed returns of about 4% but assuming the market carries on the way it is now then the capital appreciation should be good too. What other investments offer you the chance for “free” holidays!