France “reliable” for investors

France is a reliable destination for property investors.

Because of this Stuart Law, Managing Director of Assetz, has suggested that economic conditions in France make it perfectly suited to investment allowing for stable growth over the long-term.

While many people may be caught up in the huge potential of emerging markets such as Bulgaria or Cyprus, there are far more potential pitfalls in those countries than in established destinations such as France. The French market has demonstrated its robust nature over a long period of time, whereas while the good times may appear to be rolling in Bulgaria right now, a political storm (i.e. if the country does not gain access to the European Union) could see a slump in the market.

The problem is while investors may be drawn towards the potential for high returns on properties in a short space of time they are also trying their hand in a relatively untested market. A jolt to the economy could be enough to knock it off its current astronomical course in an emerging state but this is unlikely to occur in a stable economy such as France.

Speaking to the Independent, Law explained, “Capital growth is slower in France but the rental market is strong and reliable, underpinned by the tourism industry.

“And property prices, though rising, remain considerably lower than in the UK,” he added.

Opportunities in France are continuing to grow, managing to hold off the competition from emerging countries in Eastern Europe and places such as Dubai because France offers quality property. Development in France has evolved over the years such that many regulations are in place to ensure that buildings are erected to a requisite standard, thus ensuring a good level of property construction.

Emerging nations often have less regulated property markets and as such, investors can face the potential danger of being caught out. There is a threat in such countries not only of economic frailties undermining the property market but also of the quality of the property being sub-standard.

“Hard-nosed investors might want the higher returns of Bulgaria but they wouldn’t retire there,” Law pointed out.

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France “reliable” for investors

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