FPN Editor's Blog

France still favourite

A couple of interesting surveys have just been released. One from Conti Financial Services reveals that France remains one of the top destinations for people looking for property abroad. France sits just behind Spain in the top spot, showing that ‘tried and tested’ locations still lead the pack, despite interest in recent years in Eastern European countries and hotspots further afield such as Dubai (at seventh place in the Conti list) and Cape Verde (not yet in Conti’s top 10). The gap is narrowing, however. Spain and France account for one in three enquiries received by Conti so far this year, who comment: “France, accounting for 14% of enquiries and creeping ever closer to the number one spot, is enjoying a stable market and has not suffered from the well-documented credit crunch. It’s an increasingly attractive investment option, not least because of lower interest rates and property prices, but also due to a number of tax incentives introduced by Sarkozy to promote home ownership. So, although Brad and Angelina have recently splashed out on their huge French Riviera chateau, France is certainly not just for those with a celebrity bank balance.”

The second survey, from Primelocation.com, reveals that, despite the credit crunch, 58% of British people still want to buy a property overseas, although 33% are reconsidering their finances and 27% are now looking for a cheaper property – clearly people are not willing to lose sight of their dreams, but are being realistic about how they can achieve them. Of the people who took part in the survey, 48% wanted a holiday home, 38% a permanent home and 31% were looking to purchase a property as an investment. The survey also showed that buyers are moving away from emerging markets in Eastern Europe and back to the ‘established and perceived safety’ of the west.

The uncertainty in the airline industry, with less well used routes facing the threat of being cut, may have had an effect on property hunters’ location decisions too. With so many travel options, France must surely remain one of the top countries for overseas homes. In fact, the the Primelocation survey puts France at the top of the table, with 24% looking for a property there, followed by Spain at 13% and Italy at 11% (in the Conti report Italy was in ninth position with 4%, while Turkey was in third place). Some 59% were planning on spending between £50,000 and £250,000 on a property.

A bientot,

Karen