French property investment is holding an important position in the investment sector of the country. Investment in French property is profitable because the value of the property in France is rising steadily. At present Paris is number one and Lyon is ranked as fifth in respect of global property investments.
The Urban Land Institute or ULI and PricewaterhouseCoopers jointly compiled a report on this sector and the above ranking is based on that report. There are several reasons behind the development of property market of France and the prime reason is the flourishing economic scenario of the country.
The present economic conditions in France are favorable for all types of property investment . As a result the investors are expecting rapid capital growth, causing huge inflow of funds in the French real estate. France is a hot spot for the global travelers.
Throughout the year tourists visit the country and for this the need for proper accommodation is rising very fast. This is also a good reason for French property investment because these properties produce huge rentals round the year.
On the other hand, the Euro interest rates are very low in France and for this the mortgage rates are also very comfortable. Again, the foreign investors can also avail 100% finance in this country and this makes the investment in the French properties much more easier. At the same time, it should also be mentioned that the French property investment sector is mainly dominated by the French residents.
On the other hand, the rate of capital appreciation is very high in France. At some particular places, 100% increase in capital was recorded. Approximately 10% growth was recorded in the year 2005. So the French property investment can produce steady development in the capital and that also in a short time.
The double tax treaty prevailing in France provides enough facility to the residents of UK who are interested the French property investment. According to this contract, the residents of UK need to pay their tax only once, for what they have earned through their investment in French property. The easy tax structure is not only applicable for the UK residents but the entire tax structure of the country is very flexible.
The main property markets of France and their growth rates in 2006 are as follows :
Last Updated on : 5th July 2016