France has always been a hotspot for British expats looking for an investment property, especially those looking to buy a second home.
Buying in an affluent area, such as the South of France, lends itself to those looking for a high-end, stable investment – and the weather is pretty great too! The writers at Property Guides present 5 reasons to invest in property in the South of France.
Year-round holiday destination
Whether you’re planning on spending half of the year in your property or just a week here and there, knowing that you’re almost guaranteed sunshine has got to be a plus.
The South of France enjoys long, hot summers and an average of 260 days of sunshine a year. Even the autumn and spring are lovely and mild, so you really could visit your property at any time of the year and still get some much-needed Vitamin D!
As well as wonderful summer holidays, the South of France is also a fantastic winter destination. With the French Alps, the Massif Central and the Pyrenees mountains all being in the south, it will come as no surprise that some of the best ski resorts in the world are found there. Some examples include the globally renowned resorts of Tignes, Chamonix and Val-d’Isère.
Steady rental income
The delightful climate and diverse landscape also present a great opportunity to make a nice income through rentals.
The South of France benefits from both longer-term monthly rentals and short-term holiday rentals. If you choose your property carefully, you could potentially make rental yields of around 6-9%.
If you really want to maximise your occupancy and rental income, consider buying a property in the regions of Auvergne-Rhône-Alpes, Occitanie, Nouvelle-Aquitaine or Provence-Alpes-Côtes d’Azur. According to Statista, these are the most visited regions of France, so there will be plenty of holidaymakers looking for accommodation. Additionally, buying in the cities or in popular coastal towns will further your chances of occupancy.
You also have the option of buying a ski property in the mountains. They may be more expensive to purchase initially, but ski chalets are some of the most lettable forms of real estate.
Fantastic long-term investment
The French property market is remarkably stable and would make a fairly safe investment. Thanks to most mortgages in France being fixed rate, the property market has not seen any big slumps. Even during the pandemic, the market remained resilient, with prices growing by 5.8% across France in 2020, according to Notaires de France.
In the South of France, the city of Montpellier saw an 8% increase in house prices in 2020 and is the most popular area of France to live. And property prices are still rising, with this trend expected to continue throughout 2021. This isn’t anything new; house prices have been rising steadily for the last 20 quarters. So, there is a good chance you could make an attractive capital gain on a property in the South of France when you come to sell.
Peace and tranquillity
If you take money out of the equation, it is the health and wellbeing benefits in the South of France that attract many overseas buyers. In the smaller rural towns especially, life is slow-paced and relaxed, bringing a welcome break from the stresses and strains of modern life.
With glorious weather and plenty of opportunity to enjoy nature, quality of life is high in the south.
Of course, it’s important not to generalise, but it has been said that people in the South of France tend to be friendlier and more welcoming than in the north – perhaps it’s the sunshine!
There is a lovely sense of community, particularly in the smaller towns, and you will be made to feel looked after whether you originate from there or not.
As with anywhere in France, it will help if you speak the language, however those in the south might be a little more tolerant of beginners.