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Obtaining a Mortgage in France

Why Now is an Opportune Time to Consider Investing in French Real Estate

The current economic environment in France presents a unique opportunity for strategic real estate investors. Following recent uncertainties, the French property market appears confident for renewed stability and growth. Several positive factors indicate the potential for sound returns in the medium to long term.

The value of euro-denominated assets remains attractive to overseas investors given its relative strength against other global currencies. Accessible interest rates on financing continue to make investment properties in France yield-progressive. Meanwhile, nationwide measures like the Pinel Act further sweeten prospective rental incomes through landlord tax incentives.

French banks now offer loan-to-value ratios of 70-80% for non-citizens, providing security. Products typically involve long-term fixed-rate repayment mortgages due to unpredictable rates historically. Buyers should note capital raising on French properties is not possible, so the initial mortgage may be the sole financing option.

Signs of recovery in the tourism industry also forecast well for vacation rental properties across France’s popular destinations. Domestic housing demand remains robust, supported partly by policies stimulating homeownership. New construction levels have stabilised after years of decline as well.

Of course, any investment involves some level of risk and unpredictability. However, for experienced investors with a long-term perspective, allocating a portion of assets to select sectors within this significant European economy undergoing transition may prove to be a well judged decision worthy of close examination.


Bethany Nicol, March 2024