20th June update:

It has just been announced that the proposed holiday tax has been scrapped.

President Nicolas Sarkozy and Budget Minister Francois Baroin were put under pressure from senators representing French expatriates during a weekend meeting and agreed to omit the measure from a tax reform package set to pass to the Senate upper house on Tuesday, the daily Les Echos said.

Source: Reuters

This does mean though that the tax will have no effect on investment properties such as French leasebacks and properties that are rented out (buy to lets).

Second home owners in France already pay two local taxes- taxe d’habitation and taxe fonciere- and this one will also be calculated based on the rental value of the property.

“Owning one or more second homes implies that one benefits directly or indirectly from local and national public services, like the police, legal system and national infrastructure,” the finance ministry said.

Many are worried that with the already weak pound, this new tax will have a serious effect on the housing market in France, in particular in more rural areas. The number of expats selling up has already increased considerably (doubled in fact in the past year) and this may be one step too far for them.

As the tax is calculated based on the rental value (so dependent on the size and location of the house) you will pay more if your property is located along the French Riviera, in Paris or in one of the ski resorts. However many would argue that for those who already own such premium housing or are looking to purchase in these areas, the extra levy will be no more than loose change, even if it equates to tens of thousands of pounds.
The flip side is that for most second home owners who’ve bought a character property in a rural area of France (be it Normandy, the Dordogne, Charente or Limousin) the rental value won’t actually be that much, and thus the amount you’ll be levied won’t be very much either.

To calculate the charges you might face, look at a copy of your last taxe foncière bill. On the last page, under ‘Taxe foncières – Détail du Calcul des Cotisations’, next to the word ‘base’ should be the rental value of your property. You should see that the various taxes levied by your councils produce amounts that relate to that rental value. The new tax will be 20 percent of that ‘base’ or notional rental value. So 20 percent of that figure is what you’d be liable to pay each year.

We can illustrate this point with a villa located near Allemagne en Provence (in the Alpes de Haute Provence), currently on the market for €577,500, with 2 acres of land, a pool and 5 bedrooms. The “base” is 1914€ which is the estimated rental value for the French tax office. The owner currently pays a taxe fonciere of €1046/a year. This new tax equates to an extra €382.80 a year, or €32 a month, which is not a large sum of money, and this is a fairly desirable area of France, under an hour from Aix en Provence.

The bottom line is- this new tax will not set you back much at all, though the newspapers have already done their best to report it in a sensationalist way. We may not agree on the principal of it, but the tax will not set you back drastically.

Hope remains that it may not even come to this- the tax will no doubt be challenged as discriminatory under European law, even though the wording tried to avoid this issue by saying that all who own a second home are liable, even French citizens resident abroad…

-          Inform yourself about grants to finance renovation works and reducing the  tax you pay…

Soaring prices in real estate haven’t been kind to the most popular tourist spots, making the “Pied-à-Terre” unaffordable. Therefore it is worth looking for houses to renovate which can be purchased at better prices. But be very careful as some renovation works could cost you four times the purchasing price, in addition to the fact that in protected areas, you will be obliged to take into account punctilious town planning restrictions.

Solution: speak to the Heritage foundation which could offer you a local Petit Patrimoine label which helps with 50% of the costs regarding roofing and façade. The only condition to benefit from this advantage is for your property must be of  architectural interest, and apparent from the road. It could be a mere 20^th century manor for example.

-          Maintaining your garden cost efficiently

In areas that see more rainfall, you have to mow the lawn every two weeks in spring/summer: the energy cost is likely to be high!

Solution: the cheapest idea is to contact a local gardener (between €15 and €18 per hour including charges). If you pay with service-employment cheques, you could save half the taxes.

-          Invest in regular maintenance of your swimming pool:

Except the installation cost (€12,000 or so for a small mono hull), plan €350 for water consumption including evaporation, up to €300 for cleaners, €1,000 for the filtration robot to be replaced every 5 years and €2.500 for the replacement of the “liner” every 10 years, the transparent and waterproof cover on the pool.

Solution: it is better to carry out small maintenance regularly than a complete cleaning before the beginning of summer. Thanks to this method, your swimming pool will last a further five years!

-          Current expenses:

Focus first on low-energy heating and those utilities you can reduce consumption of: water, gas, fuel, phone subscription… If your habitable surface doesn’t exceed 100sqm, try a wood-burning stove (from €1,200). This sort of unit will be paid off after five years of usage. As regards wood, it costs around €280 per year, i.e. half the price of electrical heating systems.

-          Taxes:

The taxman won’t be your best friend. Make your choice wisely as different towns pay different taxes- for example in Nice, taxes amount to €2154 a year on average compared to €1761 in Menton. That’s nearly €400 difference between two towns only 32km apart, both located on the Mediterranean coastline!

Throughout France you’ll find some superb golf courses: in the north, in the south ,and even in the mountains. The most renown is The Albatros in Guyancourt/Saint-Quentin-en-Yvelines but the beauty of it could be questioned, due to the airport which disrupts the quiet a golf player needs. Nevertheless, the best European players produce some of their best games there at the French Open.

Have a look at the 10 best French courses not to miss:

1-ETRETAT:

Famous for its cliff as well as its sea views, it remains quite hard to find golf courses with such a picturesque location  to attract its customers. Located between Le Havre and Fécamp on the Upper Normandy coast, golf courses can rarely enjoy such a superb site, overhanging the sea and bay of Etretat. Classified among the best golf courses in Europe by the famous specialist newspaper Golf magazine, it is easily accessible by ferry since it is near Le Havre port.  If you come to play golf in Etretat, you will discover quite a hard course as soon as the wind blows. But whatever your score, you will undoubtedly have many a magic moment- pure pleasure for golf lovers!

2-SPERONE:

Let’s stay by the seaside! A magnificent course in Corsica called Sperone is located near Bonifacio at the very south of the Ile de Beauté as it is called by the French. This time you’re faced not with cliffs but with clear waters and a magnificent view of the corals. With views over the sea, the bays and even the Sardinia Mountains, the charming creeks are sometimes flooded by the tide which means Sperone has its own natural ponds on the course.

3-DINARD:

Set in Brittany close to Saint Malo, the Dinard golf course is one of the oldest in Europe as it was built in the late 19^th century. It was founded by a small colony of British people during the Industrial revolution when the railway and the enthusiasm of a new lifestyle arrived. This course extends over 12 acres of dunes and fields along the coast. The view over the Channel is stunning and the number of lost golf balls due to the wind should be impressive as well.

4-PONT ROYAL:

Absolutely marvellous! A stone’s throw from Aix-en-Provence on the French Riviera, the Pont Royal Golf course enjoys a magnificent view over several streams and the mountains. Set in Mallemort, Pont Royal benefits from many prestigious residences with individual swimming pools enjoying a breathtaking view over the mountains and the course. It is surrounded by a nature full of fragrant herbs and undulating hills, where hikers had been coming  until 1989 when the golf was created. Nowadays, tourists and locals form the population of the area, which offers all amenities from a post office to the tourist information office. This cohabitation gives its charm to Pont Royal, as tourists bring activity, and residents contribute to the durability of the region. Classified one of the best courses in Europe, the 18-hole golf was designed by the recently late Spanish champion Severiano Ballesteros.

5-EVIAN:

Shrine of the female golfer, the Evian Masters Golf Club is one of the 4 Grand Slam tournaments on the Female Golf Tour.  Overlooking the Leman Lake in the French Alps, the view is absolutely magnificent and its greens are perfect. The resort’s residents are always welcome with no entrance fee. It is located only 45km from Geneva airport.

6-LA BAULE:

La Baule Golf courses are just a few kilometres from the Atlantic Ocean. Well known by British golfers for the quietness of the surroundings and the quality of the greens, La Baule is among some of the most challenging courses. It has three different courses:

• Lucien Barriere golf course: The presence of several water obstacles makes these greens a delicate challenge.
• Diane Barriere Desseigne: this course offers a clear contrast of styles between holes out in the wide open, and those which weave their way around a 5-acre lake.
• Francois Andre: situated in a marvellous natural setting, this golf links is suitable for all levels whilst also respecting the standards of difficulty applicable to modern courses.

7-CHAMP DE BATAILLE:

Located between Rouen and Evreux in Normandy, the Champ de Bataille Golf Course surrounds a superb castle. It has a huge garden and beautiful ponds which constitute the icing on the cake!. The course has even recently been named the finest course in the region “thanks to its design, the exceptional setting and the quality of maintenance according to European Golf, a specialist magazine”.

8- LE TOUQUET:

Set on the Cote d’Opale in Northern France, The Touquet Golf Course called La Mer has strong British connections not because it was laid out by British architects, but because it was originally the playground of the British gentry. Nominated as the most stunning golf course of the Nord Pas-de-Calais, La Mer is perhaps one of the only true links course in France with its high tees that enable a very distant view.

9- FONTAINEBLEAU:

There is one of the largest and most beautiful French forests in Fontainebleau. A place of history and royal association, the course is situated in an ancient walled site, which strengthens the historic atmosphere. Opened in 1909, its greens are small and well guarded: an excellent short game is paramount for any golfer on this course! There is a little rough here but this is offset by the thickness and density of pine and oak trees.

10-CHANTILLY:

One of the most beautiful courses in Europe and set in the forest of the Ile de France, it was built in the same years as Fontainebleau and hosted numerous French Opens; including the 1913 Open de France before the test was definitely based in Guyancourt (see above). With 36 holes, many famous players teed off here, including the great Bobby Jones and The Golf Channel’s Nick Faldo. Faldo even won the French Open at Chantilly.

This top 10 has been compiled due to their beautiful landscapes and panoramas, the course characteristics and the availability of French properties in this area. Now take your clubs and enjoy a great afternoon in one of these courses…

As you can see on the French calendar, there are holidays around the end of winter, that’s why ski resorts in the French Alps are full up during this period. The main advantage of these holidays is that the French don’t benefit from the same holiday zones depending on which academy they are under. It means each zone has the same duration (2 weeks) of holidays but not during the same period.

Here are the three zones:

-  Zone A: Caen, Clermont-Ferrand, Grenoble, Lyon, Montpellier, Nantes, Rennes, Toulouse

- Zone B: Aix-Marseille, Amiens, Besançon, Dijon, Lille, Limoges, Nice, Orléans, Tours, Poitiers, Reims, Rouen, Strasbourg

-  Zone C: Paris, Créteil, Versailles, Bordeaux

The ideal period for your French holidays is obviously when Paris (Zone C) is not on holiday too. Representing  20% of the overall French population, you have more chance to be stuck in traffic jams when the Parisians leave Ile-de-France. Even on weekends it is still difficult to drive because Parisians often go for spring weekends if they have a  country house. Should your French property be in Normandy or Brittany (which are often ideal places for a Parisian’s country house), you may be surprised by the number of cars on the roads going towards Paris on Sunday evenings during spring!

Despite the fact that it is always hard to know the ideal periods to go back to your French property, have a look at 3 main times when it is worth spending your time in France:

-          To avoid crowded ski or seaside resorts, it is worth going to your French property on weekends or between holiday periods. For example, why not take a weekend at the end of September just after the beginning of the new school year? At the time, the high season is over and motorways are empty. As you may know, French motorways have tolls, but prices are cheaper than during summer holidays.

-          In case you prefer the winter or you own an apartment in the French Alps, it is easy to bypass most French tourists. In late December and during the winter holidays in February or March (depending on the Zone) there is no availability in ski resorts. However, high season is far less busy between New Year’s Eve and late February and the affluence of holiday-makers as well as the resorts’ prices is lower than during the high season.

The best period to go to  France is definitely during the Ascension weekend! In the French calendar, there is a 4-day weekend in May which could enable you to spend time in your property. Many French people take a trip to the Atlantic coast rather than the south of France just to enjoy the spring sun in a very windy place: this type of trip is very common in France.

A mountainous region:

In the middle of the Massif Central, Auvergne is the only French region entirely covered by a mountain range (except the department of Allier in the North of the region). This region, which is also a French holiday destination, has a unique identity well known due to its famous volcanoes (Vulcania, a famous amusement park, is entirely devoted to them). Although the last confirmed eruptions were 5,000 to 6,000 years ago or so, most have eroded away leavings areas of unerupted hardened magma that formed hilltops known as Puys. Amongst them, the most famous are the Puy de Dôme and the Puy de Sancy (the latter being the highest mountain in the Massif Central). Auvergne is known as the largest volcanic area in Europe and that in turn gives you a different impression of the range.

The region is predominantly agricultural and is attracting more and more tourists thanks to its international companies such as, Michelin a big player in the tyre industry, the Danone Group, or the water Volvic, amongst other medium-sized businesses which have contributed to the dynamism of its capital Clermont-Ferrand. Boasting a great economic and industrial potential, Auvergne is creating more and more jobs.

As regards the local area, the Auvergne region includes many stone properties with huge amounts of lands. You will often find farmhouses with livestock for sale. The quiteness, the unpolluted air and large expanses of greenery make many happy, so if you dream about buying a property far from it all and maybe developing an animal activity, Auvergne is ideal for you. Even today, hamlets full of recent houses and developments remain rare in the area.

The main attractions:

Discovering nature by hiking, biking and skiing in the 3 ski resorts in the Massif Central are the main local activities in this particular French area. Visit Le Mont Dore, Super-Besse and Le Lioran. Less well known than the resorts in the Alps, the ski areas of the Massif Central are more family-orientated. Nevertheless, there are magnificent golf courses with stunning views over the mountains. Like in many ski resorts in the French Alps, paragliding and hang-gliding are commonly practised activities in the area. In addition, the local resorts provide impressive facilities regarding tracks and racing. For example, Super-Besse hosted the Andros Trophy several times, a famous car race on a round iced circuit.

The Massif Central has great plains, peaks and valley floors… You‘ll find an infinite number of panoramas. The range stretches from the Auvergne (Allier, Puy-de-Dôme, Cantal and Haute-Loire) in Aveyron through to Monts du Forez (Loire), Lozère, Cevennes and the Ardèche. From the Bourbonnais to the Black Mountains, this a wild area, steeped in tradition and history.

The locals are kind and generous and look forward to meeting you!

First of all launched by Napoleon in the c19, leasebacks have become an essential stimulation of resl estate.

Why were leasebacks introduced?

The initial aim of the scheme was not only to create new jobs, but also to increase the supply of holiday homes and, consequently, improve tourism in France. After the start of the Cold War in the early 50’s, the Suez Canal crisis in 1958 and the Cuban Missile Crisis in 1962, the world entered into a ‘Thaw’ period in the late 60’s. People wanted to experience something new, and this is how the great expansion of tourism happened. Around 1968-69, following the increasingly large number of tourists visiting France, the French government recognised the real need to develop investment in the construction of tourist residences.

How were leasebacks introduced?

In the early 80’s, the French government launched the LMNP (Location en Meublé Non Professionnel) which is a fiscal system to build wealth in real estate on favourable terms. The purpose of this system is to increase the quantity of accommodation on the market. Little by little, the famous motto ‘BUY TO LET’ appeared. The ‘lease’ concept was officially born when the French government decided to introduce the ‘leaseback’ model in the late 80’s to augment the amount of quality holiday accommodation available in areas capable of attracting more tourists. This strategy worked very well, all the more so as this concept appeared and began developing at a time when the country’s construction industry needed a boost.

As an incentive to investors, the government allowed the VAT (19.6% for new build properties in France) on the purchase price of properties built for tourism or ‘leaseback’ purposes, to be recovered, representing a significant saving on the purchase price. This incentive, combined with massive investments in roads, trains and supporting infrastructures, as well as climatic, culinary and cultural benefits, led France to become the world’s most visited country!

What about leasebacks today?

Nowadays, leasebacks represent an important and strategic area not only for the real estate market but also for tourism. Indeed, If you regularly have a look at our French leasebacks, you’ll see they are located in or close to tourist areas (often near the seaside or ski resorts…) For example, they’re often located in the French Alps and in the south of France (to be more accurate along the French Riviera and Languedoc region).

Leasebacks properties have a lot of advantages such as:

- Low risk investment

- Hassle free maintenance

- Financial (tax) advantages

- The investor can use the property himself (depending on the terms of acquisition)

- Possible good returns

- The asset will be well looked after

Today, Lyon is in full expansion! With the extensions of tube lines, upgrading of roads, the rehabilitation of the Saone coastline, the construction of ‘OL Land’ – the brand new sport centre, works are taking place everywhere in the capital of Rhone-Alpes. Even if the estate market is on the up (7% average price increases last year), targeted areas are such as la Part-Dieu, Gerland and Charlemagne are only just keeping their heads above the water.

Have a look at the main sites which will be offering very enthusiastic projects:

1. A new leisure space:

From 2014, inhabitants of Lyon will have access to the new leisure zone and shops of Confluence in the Gerland district. This project will be based on the other side of the Rhone, one of the main rivers of France, thanks to the continuation of a tramway line.

As far as activities are concerned, 1000 apartments will be available soon in the Bon-Lait residential area. Shops, schools and child care centres are opening their doors. It is therefore the right moment to make the first move if you want to buy old apartments (generally from the beginning of c20^th) which face the Rhone shorelines. To give you an idea, the average price is around €2,500 per square metre.

2. Apartments for young people:

In the 8^th arrondissement, 2 or 3-room apartments look cheap and are located in peaceful surroundings. Influenced by prices that soared in the Monplaisir district (€3,200 per square metre today), young couples or single people are opting to install themselves in the Grange-Blanche area. But be careful, prices are rising there so there’s no time to lose if you want a bargain. These buildings often have to be renovated with the square metre priced at €2,000, but you could easily find a 3-room apartment at the Place Bachut. This area has plenty of potential and you could still find a €150,000 furnished house in good condition available.

3. The new Villeurbanne:

Thanks to the new materials this area has been equipped with, Villeurbanne has moved forward a gear. Long having been considered as the retreat of those who couldn’t afford a house in the centre of Lyon, people will be able to find some bargains here. The major axis of Villeurbanne, the cours Emile Zola, will undergo an overall restructuring in order to give more space to pedestrians and cyclists.

Moreover, the Henri-Barbusse area will be redrawn. You’ll find a cinema, 25,000sqm of shops and offices, and between 600 and 1,000 brand new apartments. You should take advantage asap! To give you an idea of prices, you have to shell out €2,000 to €2,500 per square metre in the oldest properties, and over €3,200 for recent buildings.

4. The industrial zone in conversion:

It is probably one of the riskiest gambles of Lyon’s projects: transforming the former huge industrial site of Le Carré de Soie into a leisure pole. It is obviously an ideal place for property developers to do business. Within about 10 years, over 800,000 square metres of offices and buildings will open their doors. According to experts, prices should boom by 15% in the next three years. Its attractiveness comes from the closeness of the Place Bellecour (the town centre of Lyon) and the Saint-Exupéry Airport.

Beyond its football club of which the city of Lyon owes its international renown, it has become a trendy place through new dynamism, developers’ affluence and the construction of brand new facilities.

Today, leisure extends into all sectors including real estate. During your French holidays, it is now very easy to take part in an activity even if you have never practised it before: it is an opportunity to discover France as you’ve never seen it before.

Whether indoor or outdoor, in summer or winter, here is a list of activities you could enjoy:

=> In the countryside:

Country leasebacks are also often close to the seaside. Hence, you can find many leasebacks on the French Riviera set at most 30 miles away from the sea. With good weather, you will find residences where you can find the following:

-          Football pitches

-          Badminton courts

-          Tennis courts

-          Dance floors

-          Swimming pool: either for swimming, diving or water polo…

-          Horse-riding: particularly when your apartment is located near a forest and part of a beautiful landscape, as local tourism is working well these days thanks to such small scale attractions.

Should you have a river or lake a stone’s throw from your residence, you could even practise canoe, kayak, rafting or pedalo boat…

=> In the ski resorts:

In the mountains whether in the summer or the winter, you’ll always be able to enjoy what nature has to offer.

Winter activities:

Of course, the first activity that comes directly to mind is skiing or snowboarding. Moreover, 99% of French ski resorts also offer sleigh rides! It is an opportunity to discover the mountainous landscape in an entirely new way  . And when it’s cold outside, luxury leasebacks often include well-being centres with fitness, spa, sauna and hammam.

Summer activities:

It is worth trying paragliding or hang-gliding in summer to take in the landscape as well as to literally get a breath of fresh air (in summer, temperatures in the mountains can reach up to 40 degrees in the shade). Another way to admire the landscape is by  helicopter ride, an experience you shouldn’t miss.

If you are used to teeing off like Lee Westwood or Ian Poulter, you will find a golf course in every ski resort in the French Alps. Unfortunately, on account of the huge amount of space needed for a golf course, it is still rare to find an 18-hole in a resort.

=> By the seaside:

By the seaside, apart from the pleasures of sunbathing, there are various clubs offering afternoons of deep-sea diving! Discover the ocean floor and observe marine animals in their natural environment (fishes, algae, coral reefs…).

If you are ready to show off your prowess, show off by windsurfing, water skiing or kite surfing along the beaches.

-> Don’t believe that these sports are reserved for a certain category of people who can afford them. You can actually take lessons at prices far lower than you’d think. You don’t have to go to every class if you don’t want to. Although the more you go the quicker you’ll pick up the sport.

You’re on holiday, so have fun!

Here is an overview of each part of France to help you to choose the right place:

- Northern France:

Northern France is ideal for people who want to pile the family and all their bits and pieces into the car. Its long sandy beaches represent an important part of the landscape in the Nord-Pas-de-Calais region. They stretch from the Belgian border right round to the Pays-de-la-Loire. You may even see seals that live in groups on small islets before migrating towards Greenland.

Another appeal of northern France is the easy access to the coast and a huge choice of inland countryside. The lifestyle varies according to the location but everyone in northern France enjoys ease of access from the United Kingdom and the year-round mild climate.

As far as the local architecture is concerned, there is every shape and colour of house in northern France from the coast to the countryside. From the red bricks of Pas de Calais to the black and white half-timbered houses of Normandy, the whitewashed houses of Brittany to the golden yellow stone houses of Vendee, a variety of properties with different architecture are set in quite a small space.

Nevertheless, prices there are not the cheapest in France but there is undoubtedly something to be found within most people’s budgets. Expect to pay from €100,000 for a seaside view apartment in Vendee or a one-bedroom holiday cottage in Brittany to around €200,000 for a good sized rural property.

- Central France:

If you’re looking for a ‘green destination’, central France is made for you. There is a feeling that time is at a standstill in this rural area. For anyone who likes cycling, walking, horse-riding, fishing and lazing by lakes, the Limousin has it all. Low property prices are a big draw as well as the peaceful surroundings.

The Auvergne region suits many people who like the idea of a long letting season. The snow in winter brings skiers from the three ski resorts in the Massif Central, and the warmth of the summer draws people to investigate the numerous mountain lakes, volcanoes and the famous cheese of course!

Burgundy also attracts year-round visitors who enjoy the wines and the canals, though the likely cost of a property will be around €250,000. Saying that, for €200,000 you can acquire something slightly more modest. On average, it is far more expensive than the Limousin. But again, it’s a matter of matching the style of house and the budget to the area that will suit you most.

The Rhone-Alpes region offers the best French ski resorts in the French Alps. It has a lot of expensive properties and prices are increasing rapidly. You will find chalets, apartments and country houses amongst others.

>Click here to see the best ski resorts in the French Alps and our properties in the area

- Southern France:

Southern France – particularly the south-west – has attracted more UK property buyers and holidaymakers than any other part of France. The warm sunny climate, vineyards, gorges or bustling villages have all attracted people to this part of France. If you intend to buy a holiday home for a rental income, you are unlikely to be short of visitors here. UK property buyers have been buying up large properties in the south-west to renovate and develop as holiday accommodation for a while.

From the Charente to the Dordogne, the Lot and Pyrenees Atlantiques, each department has something to offer but every region shares the very special nature of the south-west. The area is so vast that all sorts of properties can be found. Generally, houses will be in better condition than in the centre and north but will be more expensive (from €180,000 for a 2-bedroom cottage up to €500,000 for a gite or for anyone who is ready to make a business with a holiday home). If you are looking for bargains, you need to get away from the coastal stretch and go into the hills.

The south of France is known as the playground of the rich and famous, and the French Riviera lifestyle will always be an attractive place for those with time and money to spare.

What draws people to the south is:

-> the 300 days of sunshine each year

-> the international and glamorous lifestyle

-> the access to the Mediterranean

-> the mountains

The large majority of Sextant’s properties are resale properties, offering a large choice throughout France suiting the need of every customer. Ready to move in to or requiring a full renovation, Sextant Properties have all sorts of properties that are bound to meet everyone’s requirements.

> The Global Situation
The index has now been updated and shows the evolution over 18 months, from October 2009 to January 2011. The information can be put together in a chart, showing the average price trends in France.

In January 2011, the average price over 13 regions is €312,687 which is -0.25% lower than last month, but which represents a 9.94% increase over the last 18 months.

Visit the French Property Market: A regional outlook over the 13 most popular regions in France.

> 3 Top Area Evolutions
The regions of Normandy, Midi-Pyrenees and Brittany have all seen a rise in their prices of nearly 14% since October 2009.

In Normandy, they have risen by 16% since October 2009, with an average of €257,805. With this budget one could purchase a beautiful recent house set in 1.24 acres of garden with outbuildings and a swimming pool (ref 24419). In Midi-Pyrenees, prices have risen by 26%, to reach an average of €326,839.

The region of Languedoc, one of the sunniest areas in France (300 days of sunshine/year), has an average price of €325,572, which represents a 2.02% increase in comparison with October 2009.

These area prices will probably tend to increase and maintain their good investment potential over the next few years. Keeping an eye on the index can be very valuable indeed, as it is updated every month.

> Top Area for Negotiating
Only the Rhône-Alpes region’s average prices have significantly decreased over the last eighteen months. In this region it will be easier to negotiate the price, especially if the property has been on the market for a number of months.

The 13% decrease of the average price in this region since October 2009 seems to have stopped about three months ago. With this stability regained, prices will be back to the standard soon. This French Leaseback apartment in a 4-star residence with heated pool (ref 35772) in Megeve could be the perfect place for an Alpine property

> Still on Top
The Provence-Alpes-Côte d’Azur region has always been a fantastic area to find the most beautiful properties in France. The average property price around this region, €764.000, is enough to purchase this beautiful Mediterranean Villa (ref 13262). The stability of the average property price in this area confirms that this region is still one of the best places to invest in France.

If a customer’s dream property is over their initial budget, they could still take out a mortgage. French mortgages have dropped to 2.22% for a variable rate. For advice and help with all financial needs, Sextant have their own team of mortgage brokers, Sextant French Mortgages.

View the latest price variations per region here: French Rural Property index.