According to the BNP Paribas International Buyers Observatory, the non-resident property investment market in France is holding steady, despite the crisis.

• 90% of non-residents surveyed in February believed that purchasing a property in France was a good long-term investment.
  
• Only 28% said that the crisis could change their future property plans.

 

1) France, the country with which foreign buyers have developed a veritable love affair.

The BNP Paribas International Buyers Observatory indicates that 69% of those surveyed hadn’t considered any other country but France prior to starting their search. The “love affair” aspect is confirmed by the amount of time investors take to come to a decision: less than 2 years for almost 60% of them, despite the distances involved.

Why France? Primarily because of the French way of life!
77% of those surveyed evoke "a love for the language, culture and way of life", closely followed by "already in the habit of going there for business or pleasure".
"Low property prices", which completes the top three, is cited in 57% of cases.

Generally speaking, the reasons that incite non-residents to invest in France far outweigh the obstacles, which are essentially the amount of red tape and the complexity of administrative tasks (35%).
The lack of property transaction safety is only mentioned in 11% of cases, and the French property market is perceived to be healthy with a great deal of potential.

2) The economic crisis has not made the French market any less attractive.

Despite the economic downturn, foreign investors remain confident. Only 27% believe that the crisis is a bad thing for the property market, and less than 20% say it will change their future plans. A massive 90%, meanwhile, have a positive view of their investment over the coming 10-15 years.
 

3) Buying process: Internet: a vital tool when it comes to searching for a property

The BNP Paribas International Buyers Observatory  reveals that when searching for a property in France, non-residents now turn to French websites (43%) and websites in their home country (50%) just as much as to French estate agents (46%). (Use of several channels to search for a property)

Financing: service is more important than price
The availability and expertise of advisors are cited in 65% of cases, neck and neck with the languages advisors speak.
The loan rate, on the other hand, is evoked by just 44% of those surveyed, lagging quite a way behind the speed at which the proposal is received (55%), and the speed at which the loan agreement is received (53%).
 

4) Important key figures

France’s non-resident property investment market is managing to hold steady despite the crisis in a global market (residents and non-residents) that saw the number of transactions plummet by 25% in 2008 versus 2007.

What’s more, non-residents generally invest significantly larger sums of money, spending an average of €248,000 on older properties and €308,000 on new builds, compared to €219,000 and €206,000 respectively for residents. .

• Most foreign investors come from Europe.
    British and Irish investors represent 30% of the market.



• It comes as no surprise to learn that the Southern-most regions of France attract the greatest number of non-residents.
    25% of transactions in the PACA (Provence-Alps-Côte d’Azur) region involve non-residents, closely followed by the Alps.
  
  
• 72% of properties purchased are older properties..
  
  
• Houses account for approximately half of the transactions involving non-residents
  
  

Relatively unchallenged by other countries, France boasts a vast and varied number of assets for foreign buyers on every level. It is perceived to be the one country that can offer its own inimitable lifestyle encompassing gourmet food, a laid-back way of life and a quality welcome, and almost nothing darkens the picture. The only slight reservations investors have concern the amount of red tape and the complexity of administrative formalities they may have to face.

What’s more, foreign buyers only seem to be moderately affected by the current crisis as far as their assets and property plans are concerned, with a large percentage planning to carry out further property transactions over the course of the next few years. They qualify the French property market as “healthy”, and consequently represent a significant source of potential for the profession. The human side of property deals is vital as far as foreign investors are concerned, with quality of service considered to be far more important than price: availability and expertise, speaking the purchaser’s language, ability to offer advice..