Languedoc and Paris, property growth

Languedoc and Paris,the best regions for property growth

The questions I am asked most are about the best place to live and the best areas for property investment in France.

This article gives my opinions, supported by statistics and information.

Choosing your home can only be a personal decision, but many people describe a dream-like country cottage, outside a quaint village in an area of outstanding beauty, and then buy an apartment in a busy seaside town, or a modern villa in a thriving suburb.

For a vacation, an isolated cottage or a quiet French village house can offer a couple of valuable stress free weeks of calm. But to live permanently, or for a regular visit I recommend that you choose a low-maintainance home where the bakers, some shops and a cafe are all in short walking distance. Wherever you look, make sure you visit at different seasons and certainly make a visit in the winter before you buy.

France is a very big country, each of the 95 departments has an individual character and there are several different climates.

Tourism

Tourism is still the largest industy in France with over 70 million visitors each year, so obviously the popular tourist areas can be crowded in the summer and deserted in the winter. If you are buying to invest in tourism, ignore what the local tourist offices say, not all parts of France are equally popular, so if you are thinking of buying a property which you rent out part of the time, do your homework. Tourism into France has declined since 2001 and accommodation units have increased in the same period so buying to rent to the leisure industry needs to be carefully researched.

Importantly, the huge numbers of visitors to France are not as relevant as the actual revenue from tourism, France is in fact no longer number one having lost this position to Spain, a weaker dollar and cheap flights to new and novel destinations suggest that there is unlikely to be growth in tourism to France. There is some useful information on World Tourism Rankings

Investing in any tourist related business in France can still a potentially rewarding enterprise, but, as with any business or investment, good market research and due diligence for any business must be throrough.

Real-Estate

Since the early 1990s there has been a stready increase in property prices in France. Historically prices have been (and still are) lower than other West European countries. Reasons for this include the controls and taxations discouraging property speculation and the large number of old properties in attractive town and villages which were pushed into the market from the mid 1990s.

Property appreciation on year-to-year basis in France (This data is taken from 513 urban centers throughout the country.) Source FNAIM

1 quarter 2006 - +8.3%

4 quarter 2005 - +10.3%

3 quarter 2005 - +10.4%

2 quarter 2005 - +9.5%

1 quarter 2005 - +13.6%

4 quarter 2004 - +15.5%

The main reason for the recent real-estate market slowing down in France is the general feeling that the high investment returns are a matter of past. This is translated into lower motivation in buying homes for investment only. The interest is still there but the mood is not so optimistic, and thus the demand is not as high, especially when compared with the boom of 2003-2004.

So, where should you be thinking of buying a home.

As I have said, all I can give is my personal opinion and preferences and quote the statistics published. Not all the 20 regions of France are tourist areas. Some which have traditionally been popular are declining in popularity and price, others are remote, bland and have few facilities.

When we first moved to France I was fortunate to be able to have some time to spend over three years driving and using the excellent rail transport to explore hundreds of towns all over France, searching for our permanent home. In 1994 we made the move from Trevoux, a village north of Lyon on the edge of the Beaujolais, to Nizas, in the department of Herault and Languedoc region ( \a href="http://nizas.com/nizas.html">NIZAS ), we made the choice based on many things, the climate, local facilities, the "openness" of the friendly people and the sheer beauty and charm of the region with rich agricultural land, near the Mediterranean and views of the mountains of the Massif Central.

My reasons for recommending Languedoc and suggesting that, as an investment, it has strong growth potential are...

1. Officially the government is investing and encouraging so that the population increases by at least 50% by 2020. This is creating a rapid development of services, already among the best in France for health, education and sports. Montpellier is voted year after year as the town in France that French people would most like to live in.

2. There is plenty of space, Languedoc has been an ignored "backwater" for over eight centuries, since the Cathar Crusade. Unlike Provence-Alpes Maritimes-Cote Dazur (PACA) the land is rich and fertile and the coastal plain has plenty of room for expansion (also the beaches are golden sand not pebbles).

3. Property prices in Languedoc have increased substantially over the last ten years, but this was from a very low base, prices are still excellent value and there are bargains - for example, I can offer you a group of three historic houses, with a pool, garden, wonderful views and lots of space for under 150,000 pounds sterling, this is for all three.

4. A massive investment in communications and transport is being made. The new fast Autoroute from Paris, the A75 is finished and the last short piece joining it to the road to Barcelona is now under construction. This, mostly free road, includes the highest viaduct in the world at Millau.

The high speed Rail link from Nimes to Barcelona is planned, some parts includingthe tunnel under the Pyrenees are under construction. This will make a trip to Barcelona from Beziers or Narbonne possible in not much over an hour. The new special TGV stations for Montpellier, Beziers, Narbonne and Perpignan will make the areas nearby prime residentail locations and only three hours to Paris.

Airports are now being widened and extended to take bigger and more efficient jets. This gives us the choice of Carcassonne, Perpignan, Beziers, Montpellier and Nimes airports all from 30 to 90 minutes from our home and Toulouse a little further.

5. Private investment in hotels, leisure centers, golf courses, sailing and marinas, is planned, approved and underway throughout the region.

6. Some of the best wine in the world is grown in the region.

Add to this the Mediterranean climate, over two thousand years of culture and history, medieval buildings and traditions going back centuries and you have a magic formula - this is why we love the region and it is our home.

Paris.

There is nothing like Paris - most people who visit Paris will dream of living there one day. It is as simple as that. For a major capital city the property prices are amazingly realistic. I am only thinking of the "Town" of Paris, the 20 arrondissments inside La Peripherique. Not all arrondissments are equal, but by walking the streets and exploring, it is still possible to find "something special".

We are shortly launching some investment and buying initiatives and can certainly help you.

Other Regions

I am certainly not saying the rest of France is not worth looking at - but I personally do not find any other places that suits me or has the advantage of services, weather and stimulation which we get in Languedoc. I could write about all other 18 regions, but the only other significant tourism region, second only to Paris, is PACA (Provence Alpes-Maritimes Cote dAzur). Personally I do not wish to live there as I consider it crowded, pretentious and restritive - but it is hugely popular (and expensive).

Here are some web pages with useful statistics for PACA

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