France still ‘outperforming’ the UK

France continues to be a better a option for investors than the UK, claims VEF…

Results from a leading UK property developer show once again that France’s property market remains solid, following the recent financial turmoil. And while prices in the UK are predicted to stagnate this year, and in some areas decline, France is forecast to have a growth rate of a solid 6 - 8%.

Hammerson, the UK real estate developer with a commercial property portfolio of over £7 billion, said that capital growth in their UK property portfolio fell sharply in the 2nd half of 2007. It was the strong performance of their French property portfolio that helped them offset the downturn at home.

Economic turbulence

John Richards, Hammerson’s chief executive, commented, “Having nearly 30 percent of the business in France has been extremely advantageous”. This is strong evidence that the French economy is holding up well against the current economic turbulence.

It is also worth noting that French properties are on average a 1/3 cheaper than the UK, and historically growth in France has been steady. This is in sharp contrast to the UK where we often see sharp fluctuations in property prices.

France’s property market is robust and if you are looking for a holiday home in Provence, a family home in rural Limousin or an investment, the evidence is growing that France is the place to buy and now is a good time.