French Property Market

It should come as no surprise to investors that the world’s most popular tourist destination (with a whopping 77 million visitors last year) is also the leading location for foreign property investors. Money, after all, makes more money.

The overall boom in overseas property investment has seen the emergence of many new markets across Eastern Europe from Croatia to Turkey, but France remains a perennial favourite with investors large and small, drawn by advantageous tax breaks, a secure legal system and a strong, stable economy.

The most recent trends reveal an increased interest in new properties, rather than older dwellings. Not least of these being the renowned Leaseback Developments unique to France.

The renewed interest in leasebacks was undoubtedly fuelled by changes in the French Tax code in January 2006, which ended the VAT penalties leaseback owners had to pay if they sold their property within 20 years.

Now that this onerous obstacle has been removed, investors in French Leaseback properties can sell at anytime without having to repay any of the VAT exempted on their purchase, realising in the process, the full value potential of properties that can appreciate by as much as 15% to 20% between contract and completion.

 

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