French Real Estate Market

French real estate remains popular among Russian citizens, despite being one of the most expensive in Europe. Some purchase properties to invest their money profitably, while others buy for rental purposes or personal use.

Vacationing in France has always been considered prestigious. Cannes, Nice, and the entire Côte d'Azur are particularly in demand. The price of the most modest apartment here starts at €260,000, while villas can go up to €2 million.

Properties in the Alps, Chamonix, or Courchevel are often bought for rental purposes. During the ski season, rental demand soars. Lake Geneva is another popular destination for relaxation and health treatments at numerous medical facilities. Housing prices around Lake Geneva start at €155,000.

Average Property Prices in Various French Regions:

• Languedoc-Roussillon: Predominantly old buildings priced from €375,000 and apartments from €185,000.
• Alsace: A “student” area with many educational institutions. Simple apartments start from €120,000.
• Aquitaine: A prestigious region ideal for investment. Property prices start at €250,000.
• Paris: Capital real estate is consistently attractive for investment. On average, apartment prices increase by 30-40% every five years. The average cost per m² by the end of 2022 was €14,500 - €16,500. Prices can vary significantly across different districts.
• Normandy and Brittany: Offer the most attractive property prices. Apartments can be found from €15,000.

Impact of 2020 on the French Real Estate Market

The global real estate market has not always developed smoothly, with 2020 posing a significant challenge. Strict lockdowns due to the COVID-19 pandemic and the resulting economic downturn had varied impacts on the global real estate market.

Events in the French Real Estate Market in 2020

Pessimistic forecasts by experts did not materialize everywhere. Some countries, including France, demonstrated not only stability but also a rise in property prices, with a 6.5% increase. Paradoxically, the pandemic and stricter mortgage rules contributed to this.

The latter factor “eliminated” potential buyers of inexpensive secondary market properties, leaving financially capable buyers, often interested in luxury real estate. New constructions became more sought after, and as construction was partially halted, a supply deficit arose, leading to price increases.

During the first lockdown in spring 2020, the number of real estate transactions in France dropped significantly. However, a positive outcome was the “freezing” of prices at pre-crisis levels. Lifting restrictions triggered a surge in sales in the second half of the year, with property prices continuing to rise in both large cities and small towns, sometimes reaching up to 16%.

The average price per square meter of French real estate in 2020 was between €2,770 and €2,811. According to experts, the price increase led to a reduction in purchased areas in many large cities (Lyon, Marseille, Strasbourg, Dijon, Paris, etc.).

Is it Worth Buying Real Estate in France in 2024?

French real estate is a liquid asset, popular among both foreign investors and locals. French law allows citizens of any country to freely buy, sell, rent, and lease real estate. The French real estate market, despite its stability, operates at different speeds, but property prices in France do not depreciate. Prices per square meter increase annually, with an average growth rate of 8% per year.

Investment liquidity is confirmed by statistics: each quarter, property values increase by an average of 1.1%. A €400,000 apartment will be worth €493,200 in five years, an increase of almost 23%.

Even during the global crisis, French property prices only saw slight adjustments, not the steep declines experienced in Spain or Greece. The most attractive regions for investment are the Alps, the Côte d'Azur, and Paris.

Major Aspects of Buying Property in France:

• There are no restrictions on purchasing any type of property for CIS citizens.
• Any foreign resident can conduct the transaction (no residence permit or other status is required).
• All transactions are conducted through a notary, who acts as a guarantor for both parties.
• After acquiring property rights, the owner can apply for a visitor visa.
• Any transaction is made through a notary's deposit, and currently, funds from some CIS countries can be credited to the account without issues.

Types of Real Estate in France

The French market stands out as the most diverse in Europe. One can buy an apartment as small as 10m² in Paris, which will be considered a full-fledged home.

• Apartments: Including multi-bedroom units with multiple bathrooms.
• Palace Apartments: Luxurious homes, typical in Paris and major cities, characterized by large sizes, high ceilings, and prestigious locations.
• Castles: With centuries of history, villas, cozy chalets, and old houses are also in demand.

About 64% of potential investors looking to buy in France are interested in Paris. The city is a clear favorite among foreign residents, who make up about 35% of all buyers.

Notable Properties for Sale in France

• Paris 7 – Varenne Bellechasse: A serene district in the heart of the capital. The 115 m² apartment features a double living room, two bedrooms, two bathrooms, a kitchen with a laundry area, and a private cellar. Price – €1,865,000.
• Paris – Upper Montmartre: A luxurious 115.90 m² apartment with a private 85 m² garden. Features include a double living room, separate kitchen, two bedrooms, bathroom, and shower with toilet. Additional features include air conditioning and two cellars. Price – €1,995,000.
• Paris 16 – Eiffel Tower View: Located on the 5th floor of a secured condominium, this bright 85.35 m² apartment offers a view of the Eiffel Tower and the Seine. Price – €1,180,000.
• Paris 8 – Golden Triangle: A dream location near the Champs-Élysées. The 51 m² apartment features a living room, two bedrooms, kitchen, shower room, and toilet. Price – €655,000.
• Nice – Studio in Carré d’Or: A luxurious and cozy 25 m² studio with a mezzanine, fully furnished and equipped. Price – €239,000.
• Nice – Apartment in Carré d’Or: A 33.26 m² apartment with a hallway, living room, kitchen, storage, bathroom, and separate toilet. Price – €220,000.

Steps for Buying Real Estate in France

After selecting a property, the following steps are necessary:

1. Preliminary Agreement: The document, in French, legally binds the property to the seller, outlining all conditions, parties, property details, price, payment method, sale date, and signatures. A licensed translator, notary, or real estate agency must be present.
2. Advance Payment: Within 7 calendar days after signing, the buyer must transfer 10% of the property price to the notary’s special account. After the transfer, the notary sends a notification to the buyer. A 7-day period follows during which the buyer can withdraw without penalties. After this period, withdrawal is possible but with a forfeiture of the 10% advance. If the seller withdraws, the advance is returned double.
3. Property Verification by the Notary: The notary checks the property for debts, hidden defects, and development prospects. If serious defects are found, the deal can be canceled without the buyer losing the advance.
4. Deal Payment: While the property is being verified, the buyer must decide on payment: either through a loan or by transferring personal funds to the notary's account. Notary services cost about 7-8% of the property price, or 4-5% for properties less than 3 years old.
5. Signing the Transfer Act: After a full property check and complete payment by the buyer, the final document – Acte de Vente – is signed. The buyer must be personally present in France with a translator.
6. Property Registration: After signing the Acte, the notary registers the new owner’s property rights within a few days. The buyer must insure the property and sign agreements with utility companies.

After purchasing the property, the owner must pay the following expenses: property tax, residence tax, luxury tax (if the property exceeds €1,300,000), and utility bills.

French Residence Permit and Immigration through Property Purchase

Buying property in France does not automatically grant a residence permit but allows participation in obtaining a residence permit for financially independent persons. The annual passive income requirement for the applicant is a minimum of €36,000. After 5 years, one can apply for permanent residence, and after another 5 years, for citizenship.

Owning property in France is a significant advantage when applying for a residence permit. The more expensive and larger the property, the more favorable the candidate’s consideration.

Licensed agency GARANT.in works only with verified developers, agents, and properties. We have properties in all regions, all insured against natural disaster risks.

We invite you to explore a selection of top properties in Paris and beyond, which may interest potential investors and those looking to obtain a French residence permit.