We received a notice from our leaseback developer in St Palais sur Mer (property ref 15998). As they have sold most of the development within the last few months and because of unexpected construction costs, they decided to increase the prices by 4% on the 18 remaining apartments (out of 71). Thus the rental yield decrease from 4.8% to 4.6%.

Most foreigners will think that it is mad to increase the prices in this difficult time. In fact it the state of the economy is not the same in all the european countries. The French investor market has been very active since the introduction of a new law (Loi Scellier) and French people have been buying massively in order to benefit from this tax incentive (you can also enjoy it if you have a French income and pay taxes on it).

This news illustrate the current market in France and clearly show that the New build market is picking up again so it is the right time to invest in France.

Tags: leaseback Poitou, leaseback Poitou-Charentes, leaseback St Palais sur Mer, new build Poitou Charentes

This entry was posted on Tuesday, August 18th, 2009 at 4:25 pm and is filed under French Property, French leaseback, Property Poitou Charentes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.