News on property investment in the south of France:

Fancy a four-bed luxury villa in the Languedoc for only €350,000? Or a Pyrenean pad with no deposit to pay?

London’s annual French property and lifestyle event, the France Show, was held at Earls Court from January 9 – 11th. Organised by the Archant Life group (publishers of French Property News, Living France and France magazine), it is always a good place to judge levels of UK consumer interest in French property.

Crème de Languedoc popped along and took a stroll past the can-can girls, cookery demonstrations, tour operators and wine n’ cheese stalls towards the property stands at the back of the hall. There were a seemingly smaller number than in previous years - but then that’s hardly surprising, given the current state of the economy.

Amongst the 75 or so French property exhibitors, a couple of big names stood out: Latitudes and VEF. Always present at the January show, with plenty of properties in the ever-popular Languedoc, these two giants of the French property market continue to market themselves through thick and thin, and their feisty female founders continue to put on a good face, at a time when business can only be described (by a Languedoc property agent we interviewed recently, off the record) as “bloody.”

Time to stop dreaming and get on with your French property project!

On the Latitudes stand, founder Penny Zoldan was perky. “We’re pleasantly surprised at the number of people who have now decided to get on with it – follow their dream and buy their property, instead of hanging back and waiting to see what happens, which is what it was like during the last quarter of 2008. People are taking on board the fact that it really is a buyer’s market, that prices are reduced or very negotiable, and that in real sterling terms they will be paying less for a property now, regardless of the strength of the euro, than they would have paid for the same property last year – so it’s time to get on with it!”

Penny commented that she had seen significant numbers of the over-fifties – and that for obvious reasons, older folk cannot put off their dreams indefinitely. “If you’re retired and wanting to either move out permanently or buy a second home, it’s no good sitting and waiting. If you have money in the bank, it’s not earning you anything. A home in France will earn you more over the next five years, both in capital appreciation and rental income. At the moment, if you have the money, either all of it or a good percentage, then you are in a strong position to get a really good deal.”  

According to Latitudes, many show visitors browsing through the “bricks and mortar” stands had a feeling that their money would be safe in France, where things are a little more stable. Some declared that they had “had enough of the ‘rat race’”, while others expressed a view that a move to France would improve their lifestyle and life expectancy.

Penny felt that although the interest in buying in France has not waned, consumers have become nervous, partly due to the reams of bad press in the UK, without really considering their personal financial situation, which for a significant number remains perfectly healthy. Crème de Languedoc thinks that perhaps, when all around you are pulling in their horns, you follow suit – it would seem a little crass, insensitive or downright foolhardy to do otherwise, wouldn’t it?

Penny commented: “Average budgets were between €200,000–€500,000, with a lot of interest in character properties in not-too-isolated locations - the inland areas of the Languedoc region are ideal for this kind of buyer.” She showed us particulars of a real bargain on her books – a recently-built, four-bedroom luxury villa with pool in Durban, in the Corbières wine making area, which is being offered at €350,000 (which Crème de Languedoc can testify is well below market value) for a fast sale. Yup, it’s a buyer’s market alright.

Brits selling their French holiday homes to make money

Meanwhile, over on the VEF stand, sales reps were busy chatting with members of the public. According to the chap who looks after the Pyrénées-Atlantiques area, a number of British property owners there are looking to sell up, wanting to free up a bit of cash and get themselves a better deal while the pound/euro exchange rate is still so favorable.

Denis Bonenfant, VEF’s man in the Languedoc, commented: “Although the current economic climate means numbers of potential buyers are down, we're seeing a higher quality of sales leads this year. The marked difference in 2009 is that the time-wasters have disappeared; visitors are ready to buy, and possibly move to France, this year." VEF founder Trisha Mason observed: "Many enquiries are coming from folk aged 50 and over who are heading towards retirement. Because they tend to be looking for a permanent home, their budgets are bigger. They've spent perhaps 10 years thinking about this purchase, and a poor pound-to-euro exchange rate is not going to stop them; they're set to go."

Pyrenean ski pads with no deposit to pay

Staying with the Languedoc property theme, we walked onto Dutch developer Pierce and Elliott’s stand and spoke to Edward Snell, who was marketing new build ski homes in the Pyrenees. Most of this company’s developments are investor-focused, and this kind of buyer is thin on the ground at the moment, but Pierce and Elliott hope hope to get things moving again with some new, improved offers.

Explains Snell: “Our latest promotion is for a prestigious development in the Pyrenees national park. It’s called Les Verts Sapin and is a dual-season, ski-in, ski-out development featuring one- and two-bedroom apartments with a full range of facilities, including a restaurant, bar and fitness centre.

Subject to status, we’re offering a “no deposit and 9 years mortgage payments” deal [based on a 25 yr fixed term capital and interest paid], which effectively removes the current concerns about interest rates and currency conversion.”