Real Estate Market in France: Forecasts and Prospects

Numerous sanctions imposed against Russia, the unstable global situation, mobilization, counter-sanctions, and difficulties in transferring funds abroad are all realities of today's world. How can one invest their savings to prevent them from depreciating in this situation? The answer is simple: buy high-liquidity real estate in France.

Is it Worth Investing in French Real Estate?

Unlike the UAE, France has limited space—new buildings don’t spring up like mushrooms after the rain. There is a certain pool of real estate, and the growth of new housing is minimal compared to the construction rates in Turkey or the Emirates. French property is valuable precisely because its quantity doesn’t increase geometrically.

The main advantage of the French real estate market is stability! It caters perfectly to both domestic buyers and foreign investors. The strict policy of the banking system towards borrowers works 100%, making a mortgage default crisis unimaginable here.

These factors affect the cost of French real estate—year after year, the French Riviera, particularly Nice and Cannes, increases in value by 20-30%. Paris, Marseille, and the Alps offer a stable growth rate of 7-10% per year. Investing in French real estate is a long-term investment where you won’t make a quick fortune but will reliably preserve your funds and even make a profit. Investing in French real estate is like putting products in a freezer: 100% preservation is guaranteed!

An important point is that French legislation provides buyers with various guarantees and reliably protects investments. The aspects related to the acquisition and ownership of real estate are refined down to the smallest details by years of judicial practice—there are no unpleasant surprises. One can be confident in buying a house with a luxurious sea view: a new building blocking the view won’t suddenly "grow" in front of it. A real estate purchase contract contains about 150 pages, ensuring that the content of the document will be implemented 100%.

French Real Estate: Investment Prospects

Today, France offers numerous directions for personal use and profitable investment. This includes the Paris district, major cities and suburbs, and small villages.

General trends are essential and should be considered when planning investments in real estate. It’s also important to pay attention to specific conditions—factors that could significantly enhance the quality of life in a location and influence property values. For example, when a high-speed train line from Paris to Marseille reduced travel time from 8 hours to 3 hours, property prices in Marseille increased by 30%. Similarly, property in Bordeaux became more expensive after the launch of the high-speed Paris line.

Analysts believe that this year, demand for French real estate will decline due to numerous terrorist threats. Property owners might sell at prices much lower than what was originally paid. Now is the ideal time to buy an excellent property for a price significantly below market value. Analysts predict that this situation won’t last long, so decisions shouldn’t be delayed. Investing in French real estate not only “freezes” your capital, protecting it from inflation but also increases it, as property prices here continue to rise despite global trends.

Regardless of the situation in the country and global crises, France has been recognized as one of the safest places for investment for many years, and here are the main advantages:

1. The purchasing process is strictly defined, and all issues are resolved with a notary. Both parties are comprehensively protected by current legislation. Every detail is recorded and outlined in the sales contract.
2. Low euro interest rates ensure competitive mortgage conditions with 100% financing. This applies to both citizens and foreign investors.
3. French real estate sold with a buyback condition can yield up to 5.5% income, almost covering mortgage interest, while also ensuring a VAT refund of 19.6%.
4. France is one of the most popular tourist destinations. The demand for guest accommodation is always high. Renting out property in tourist areas is reliable, convenient, and always profitable.
5. While many countries see declining property values or stagnation, the French market exhibits steady growth. Strict lending criteria by French banks play a significant role in this. Borrowers are carefully analyzed over a long period based on multiple parameters. As a result, even in crises, selected borrowers can almost fully meet their obligations. In other countries, where screening wasn’t as stringent, the lending market collapsed. Banks issue mortgage loans at high rates only to borrowers with deposit accounts or other solid guarantees.
6. France is entirely independent of foreign capital and investments. Most properties are sold to citizens who buy homes for vacations or personal use. The resale market is well developed.
7. All buyer expenses, including mortgage payments, can be deducted from rental income, resulting in minimal tax payments.

Buying Property in France for Russian and Belarusian Citizens

Despite imposed sanction restrictions, it is feasible to pay for the purchased property— for example, by transferring money from an account in a non-sanctioned Russian bank to the account of a French notary. Many notaries continue to work with clients from Russia if they can confirm the source of their funds.

Currently, it is easier to settle payments when buying primary market property. Payments are made in parts: the first to the notary's account, and the subsequent ones to the developer's account. Real estate agency employees in France claim that demand for apartments and houses has increased among Russian and Belarusian citizens. 85% of buyers acquire real estate to move. Obtaining visa D to open an account has become more challenging but is still possible.

Residence Permit in France

A common myth is that buying property in France automatically grants a residence permit, but this is not true. Acquiring a property allows for obtaining a French multi-entry visa, and if you own property for more than six months a year, you can apply for a residence permit. It is possible to obtain a French residence permit with almost any passport. With desire, experience, qualifications, talent, or a profitable business, there are plenty of chances.

The most popular type of residence permit is the visitor visa for financially independent individuals. It is valid for one year with the possibility to extend. Popular among freelancers, retirees, and people with stable passive income. You need to show at least 25,000 euros in your account or a monthly income of 2,000 euros per person. If your goal is to obtain permanent residence, you need to spend most of the year in France and pay taxes there. To obtain a residence permit, you must own housing or arrange a long-term lease (more than a year).

The talent passport is another popular program for obtaining a residence permit. It is intended for qualified specialists, athletes, creative individuals, and researchers—those who can make a significant contribution to the economic, creative, or scientific sphere of France.

According to French law, the owner of any real estate automatically becomes a resident of the country.

In conclusion, investing in French real estate is a decision with multiple "pluses":

• You buy a property that is guaranteed not to depreciate over time but only increase in value.
• You can obtain a residence permit if desired.
• If necessary, you can sell the property while retaining the residence permit status.

If you need help with obtaining a residence permit, permanent residence, citizenship, or selecting a property from verified developers and sellers, contact the licensed agency GARANT.IN. We take on the most complex and seemingly hopeless cases. Knowing all the "pitfalls" and nuances of French legislation, we can organize the entire process as quickly as possible. The client needs to formulate their goal, and our task is to develop the most effective strategy for each case.