Investing in Real Estate in France

Posted On Wednesday, 31 March 2021 22:34

The property is the best thing to invest in and France is the best place to invest in property. If you are interested in investing in France, firstly make your vision clear about the best places and economic situation in France. There are some very good reasons why you should invest in property in France. 

Firstly, despite of covid-19 crisis, the market has been growing steadily for the last few years and has been showing best resilience for the investors. In 2021, the economy of France will so highly rebound with growing GDP by +7.4% in 2021. Over the next 15 years, the demand for housing schemes in the south of France is very high according to selexium.com. Many areas in France have such an advanced double rental market, which benefits you from summer holidays to long winters. 

Here in France rental yields are higher than London, Paris, Dublin and other countries. During 2020 the price of French housing increased by an average of +5.8% in France. 

Covid-19 Confinements 

The property sale in France is highly beneficial for those who are trying to invest their money to grow it fast in the confinements of covid -19. Bank loans for homes in France have also been less affected by the coronavirus crisis. The French housing market is one of the most worthwhile housing markets in the world. After the decline of -8.7% during covid 19 crisis, French Government has announced an economic stimulus package in September 2020. 

Increase in prices 

Where it comes to property investment, you should focus on multiple factors, which are vital for a successful outcome. Property prices in France have increased by +5.8%, in Angers and in Western France have grown by +9.1% during the last few months. This city of France is voted for the #1 place to live in France according to L’Express magazine survey.

In Bordeaux, the house prices have grown by an efficient +48 % as this city has now become the 2nd most expensive place to live in France. In the town of Montauban the property prices are grooming with the increase of +17.1% in the last 12 months. In the southern city of Montpellier prices have increased by 14% during the last 10 years. 

Demographic trends 

If you look at overall long-term trends of increase in prices in France, you will definitely make your mind to invest in France. In terms of demographic trends, the population of Northern Europe continues to age and many minorities are choosing south of France for better living facilities. The infrastructure of France flights the demand of housing markets in France. 

Climatic aspects 

The climate of France is also the best element, which makes it attractive to invest, the 300 days of sunshine a year and continue to prosper the tourism in France. 

Economic aspects 

The housing market in France has grown rapidly in the period of 2000 to 2007 by an increase of price +12% per year. The real estate in France has continued an upward trend for the investors. The patterns in the real estate of France seem to very emphasize developments in French economy. French property market has experienced over many years of visible growth since early 2016. There are some best cities to invest in France: Bordeaux, Nantes, Angers, Montauban. 

Cheapest place to invest 

The cheapest place to buy a property in France is Saint Etienne but in the period of 12 months, the prices here have been growing rapidly. 

This article will give you the positive impression of France's economy and property markets. Despite of covid-19 health crisis the French economy has been growing through 2020-2021.

France’s growing economy makes it the best place for spending time, investing and doing business projects. 

Quality of Life 

Quality of life in France is so high and safe. This developed country will give you all the basic requirements of better living. France is about 1.5 times bigger than Germany but with a population of 20% less than Germany. This is a safe and peaceful place in regards of its environment, climate, seasons and geography. 

Legal aspects 

With one of the most regulated property markets in the world, France stands for the best place to invest in. There are no restrictions on foreigners buying property in France. 

Tax considerations 

French residents pay capital gains tax on property and shareholder companies, at 19% plus surtaxes, plus 17.2% social charges. The maximum total rate of tax is 42.2%. 

Best cities to invest 

There are best places in the France to invest in according to the need of investor as long as the availability of living facilities with best infrastructures and geographical beauty: 

● Mont Blanc Valley
● The Dordogne
● Paris
● Annecy
● Bordeaux
● Luberon 

When it comes to choosing the best part to buy an investment in France these places are highly recommended. These are the essence for the key element to look for the best living standard, which attracts an investor to invest in property. 

Leaseback properties 

Another popular investment option in France is leaseback properties. Leaseback is a scheme introduced by French government to encourage purchase of holiday homes that are available to rent by visitors in areas where these types of homes are available. France with its property attractiveness is registering comparable charges with other countries.

Tax on rental income 

In France, rental income is liable to a tax of 20% and the social security tax of 15.5% against some other well-known countries. France has also signed quotes of bilateral conversations to avoid double taxation. 

Employment in France 

Although the effects of Covid-19 have badly affected the nations worldwide but the hamper efforts of France bring it to down the rate of unemployment, which helps it to grow its economy faster. France is the best place to invest in because of many elements and it gives the best opportunities to find a suitable and secure job, which will enable you to work for 30 years and then retire before the age of 60. 

With growth in economy and policies, France probably achieved the same output as the UK and America in half of time.

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