CHAPTER FIFTEEN: Property Investing in France

France is large enough to be able to offer an extremely diverse range of activities, surroundings and climate to suit every taste. In the east stand the Alps, with some of the highest peaks and the best skiing in Europe, and in the south-west, the Pyrenees are equally spectacular. Some of the world’s finest cities and regions are here, such as Paris, the centre of French tourism, art, music and architecture; medieval Alsace; Bordeaux, with its 18th Century fountains; and the sun-drenched vineyards of Provence, as well as stunning beaches and busy seaside resorts along the Mediterranean coast. The country is also ranked as the first tourist destination in the world and is second only to Spain as a holiday home destination for Brits – an estimated half a million have already succumbed to the allure of the relaxed pace of life, the great food and wine and the endless hours of sunshine. Property prices here, whilst high, are still cheaper than in the UK, especially in rural areas.

Economically, France is in the middle of a transition from a modern economy featuring extensive government intervention and ownership to one that relies more on market mechanisms. The government has lowered income taxes and introduced measures to reduce unemployment and reform the pension system. Despite this, the tax burden remains one of the highest in Europe, and unemployment stands at 10%. The country is suffering from a lingering economic slowdown, with GDP growth at just 1.5% in 2005.

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