Why Is Property So Cheap In France?
Introduction to Property and Real Estate In France
Ah, France. It would be an understatement to say that no place has been romanticised and fantasised about like this Western European country. With a rich history of being the global capital of art, music, literature and revolution (both cultural and political), it’s no surprise that the country continues to favour the preservation of aesthetics and tradition. It is this quality which attracts so many visitors year-by-year. In 2018 alone, the country attracted 89 million people worldwide, the most out of any other country.
People are so enamoured by France that they seriously consider the reality of moving there and living that blissful ‘Parisian’ life. So let’s say you have looked up all your property inspirations and saved them on a Pinterest board. You know what kind of garden you want, what kind of land you want to live in, whether you want to live in a small town or the suburbs.
There will come a turning point when you finally move from dreaming to doing and start searching up ‘property in France’, thinking of all the moolah you are ready to spend. And here is the part where you’ll do a double-take—because, for all its history, sophistication, reputation and beauty, property in France is surprisingly cheap.
Property is so cheap in France that a simple search about property brings up multiple questions of why it is so like it’s a phenomenon that shouldn’t exist. People surely think that it’s too good to be true.
But that’s why you clicked on this link, after all. And once you’re done reading this, you’ll be able to answer that question not just for yourself but others.
Keep reading to learn what you need to know about the reason for affordable properties in this beautiful country.
This Is Why Property Is Cheap In France
There’s a large number of factors adding up to the trend of bargain property in France. It’s not shady, nor is it too good to be true. Once you’re done reading this, you’ll understand why it’s perfectly reasonable and not such an unrealistic miracle.
France is a fairly rural country compared to its European counterparts. Despite being at least 1.5 times bigger than Germany, France’s population falls short by 20% smaller than Germany.
There has also been a trend of rural depopulation, with many people moving from the countryside into the cities for employment. With so much rural and suburban land, low population and people relocating in droves, tons of houses and properties are left unoccupied and ready to be bought — often at a bargain. With many ready to be sold, these generously sized properties are a countryside dream left behind by their ambitious owners.
They are listed at bargain prices because these châteaux, built and designed in the traditional aesthetic, have renovation charges, which cost an arm and a leg. Constant maintenance is necessary to ensure the property is livable and still as aesthetically pleasing as originally intended. The structural renovation of a château alone could set back an investor by around €1,000 per square metre.
Property Trends In France
Property trends show that France’s rental market is in an upswing. This means there’s an increase in the number of households in the country, and investing in property as cheap as it is right now could land up being the most cost-effective choice you make for your financial future.
With one of the most well-regulated property markets globally, investing in property in France pays off and is one of the most secure ways to invest one’s money. In France, real estate laws keep the mortgage value at about 70 to 80% LTV (loan-to-value). Putting in just a bit more money means you get beautiful properties with other facilities like spare land, swimming pool etc. at unbelievably low prices.
To sum it up, property in France is cheap because there are not enough people taking advantage of these abundant properties! For many living in these areas for so long, employment opportunities in the cities are worth them leaving their homes behind. For those looking for a simple life, a place to wind down and be satisfied with the basic needs, far from urban noise, this is an option that is more than anyone can bargain for.
Hopefully, you found this helpful, and good luck investing!