Why should you buy a house in France in 2021?
As Franklin D. Roosevelt once famously said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care… it is about the safest investment in the world”. Last year was certainly a challenging year for all of us. However, the French property market has been truly resilient and is expected to grow this year. Standard & Poor has recently published a report for the European housing market for 2020-2021, which predicts that the house prices in France will increase during 2021 following a 5.8% increase from last year. It states, “We expect house prices in France to increase by 5.8% this year, and 3.5% in 2021, as households continue to benefit from low-interest rates and a resilient economy bouncing back from the Covid-19 pandemic.”
The Banque de France forecasts that the French economy is expected to grow this year and the next year. It is expected to grow by +7.4% in 2021 and +3.0% in 2022, after suffering a -8.7% decline during 2020 as a result of the Coronavirus crisis. There are a couple of main reasons for optimism. Firstly, France does not heavily rely on exports as compared to the other major European economies. Only about 30% of French GDP is comprised of exports of goods and services. This helped the current situation and did not affect the economy too badly. Secondly, the French government announced a €100 billion economic stimulus package back in September last year. The aim is to return the French economy back to its pre-crisis levels by 2022.
With one of the most regulated property markets in the world, France has always been a great place to invest and what keeps the real estate market strong is that the demand is not only from French buyers but international investors as well from Europe, Middle East, and America. There is a real demand for housing and only limited availability on primary and secondary markets. With the interest rate being lowest at the moment and expected to remain low in the near future, it is encouraging many investors to step onto the property ladder. Holiday lets are a lucrative business, and buying a second home is perhaps the best, and the most assured way to invest your money. Here are some of the areas in France that have great potential for investment in 2021!
Discover and fall in love with the beautiful region of Haute-Savoie, located at the foot of the French and Swiss Alps along the French side of Lake Geneva (Lac Leman). Live at the heart of Europe in this excellent location that combines the magnificent Alps with a lakeshore environment, providing a small-town feel near a large international city.
Enjoy French cuisine and culture while exploring the picturesque lakeside towns of Evian-Les-Bains, Thonon-Les-Bains, Bernier, Yvoire, Messery, Chens Sur Leman, Excenevex, located less than 1h from the international city of Geneva. The Swiss towns of Lausanne, Vevey, Nyon, and Montreux are within easy reach on the other side of the Lake, only 35 minutes by boat from Evian.
On the other side of Geneva, nestling at the foot of the Jura Mountains and at the edge of Switzerland are found famous towns such as Ferney-Voltaire, Divonne-Les-Bains that offer the best French style living even closer to Geneva International airport.
The real estate market in the Lac Léman area of the Haute-Savoie region is booming. Geneva can easily be called the “heart” of Europe, and, as a result, demand for housing is rapidly growing in neighboring France. You have a choice from apartment to villa, chalet, and even farmland. You will be making a sound investment if you buy real estate on Lac Léman.
Paris is one of the world’s few really legendary capitals and a true economic hub for France and Europe. Seen as a blend of past and future, Paris is a dream destination for French and international visitors and investors.
Paris boasts a highly skilled workforce, a true reservoir of talents and abilities, particularly academic and economic ones. The French capital is also a vital political, administrative, economic, financial, cultural, and academic center in Europe. It has a rapidly flourishing commercial real estate market, with 10% of its land, over 900 hectares, under development. The capital offers the most competitive prices of any European city, including London and Frankfurt, for establishing businesses, and features an incredibly diverse real estate portfolio (new buildings, Haussmannian architecture, etc.) It also boasts the 2nd largest airport for passengers in Europe, and the largest for freight – Roissy.
Paris will always be Paris, and its international influence, both economically and politically, will never diminish. Tourists will continue to flock to the French capital. This alone is a good enough reason to invest in property in Paris.
Golden beaches, beautiful villages, sun-filled days, and a particularly magical ambiance that cannot be matched anywhere else in the world – the French Riviera never ceases to be one of the most desirable places to own property in the world. The Côte d’Azur is the first region for tourism in France and benefits from 310 to 330 days of sunshine per year, 115 km of coastline and beaches, 18 golf courses, 14 ski resorts, and 3,000 restaurants. Between the lavender field and the blue azure color of the Mediterranean Sea, plenty of activities are offered: shopping, golf, sailing, cultural visits, excellent dining experience, waterpark, craft market, fishing, etc…
The French Riviera is consistently so desirable to overseas buyers because real estate here either holds its value or adds to it. The Cote d’Azur offers both expensive and affordable properties that usually generate a good return on investment. A luxury villa in Cannes may set you back millions of Euros, but comes complete with a near-perfect climate, a jet set lifestyle, and access to the most exclusive parties around! Within spitting distance of Monaco, Beausoleil offers a variety of properties at less than half the prices found in the tax haven next door. On the other hand, Nice offers some great opportunities to own French Riviera property at bargain prices. A studio or apartment in Nice or Cannes should prove to be an extremely good investment. The rental potential, particularly in Cannes, is one of the best in Europe, so you are likely to get a very good return for your initial layout. The appreciation factor is also significant, the properties in French Riviera enjoy great capital growth. [:]