VEF: Never better in France

There has never been a better time to buy in the French property market, according to overseas investment experts VEF.

Research from the company finds there was "enormous" interest in the north of the country during 2007, with the established markets in the south-west also attracting particular attention.

"With direct enquiries to the office we are finding there is a return to traditionally favoured areas – south-west France, the Cote d’Azure, et cetera," said Trisha Mason, managing director of VEF.

"I would think this has a lot to do with people not wanting to take too many risks in investing in new markets while the world property markets have more uncertainty than in previous years."

Figures from the French National Institute for Statistics and Economic Studies (INSEE) property survey - conducted in 2007 on over one million properties in association with the Chamber of Notaires and released on January 15th 2008 - show French property prices appreciated by an average of 5.6 per cent in 2007.

And now could be the time to take the plunge and make an investment, according to VEF.

"Never has it been better. Exchange rates will worsen during the year, house prices in the UK are likely to remain stable or even fall and house prices in France are likely to show an increase, especially the character stone houses so favoured by the overseas buyer," continued Ms Mason.

"The laws of supply and demand mean well-located properties of this kind increased in value by around 20 per cent last year and are likely to show a similar increase in 2008."

The euro has risen nine per cent against the pound since November, but VEF expects the pound to strengthen in 2008, leading to more favourable investment conditions for Brits.