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NOVEMBER 2008
With the doom, gloom and general uncertainly currently reigning across the world’s financial markets, would-be buyers of Languedoc property could be forgiven for sitting on the fence.
Even for those who have their financial ducks in a row, peer pressure and the fear of looking foolish could easily put off a wannabe purchaser.
So to set the record straight, here are some hard facts and figures about the French property market in general, and that of Languedoc-Roussillon in particular.
Why buy in France?
Property prices grew steadily in France from the late 1990s through to 2007, and although agents are now seeing a pronounced slow down in sales and prices becalmed, the French estate agency federation (FNAIM), predicts “a stable year for property prices in France in 2008”.
- The country’s tight property legislation (unlike that of Spain or Eastern Europe) ensures that buyers are well-protected.
- Strict planning laws mean that the area you buy within is far less likely (than other countries) to be spoilt by over-development.
- A relatively low-level of private debt also means that France tends to suffer less from the “boom-and-bust” cycle that makes property a riskier bet in countries such as the UK, Ireland and USA.
Why buy in the south of France?
The south of France continues to be hugely popular not only with Europeans but increasingly with wealthy individuals from emerging economies - the south of France (i.e. Languedoc-Roussillon, Provence and the Côte d’Azur) continues to out-pace the rest of France in terms of property price rises. The French Mediterranean coast continues to be a magnet for property buyers throughout the world.
Why buy in Languedoc-Roussillon?
The Languedoc region offers better value: property is currently less expensive in Languedoc than in neighbouring Provence and the Côte d’Azur, where prices have become over-inflated. Languedoc offers exceptional value for money, and a more affordable way to enjoy the climate, cuisine and superb lifestyle that the Mediterranean offers.
There is high demand for Languedoc holiday homes: tourism is booming in Languedoc, a region that has long been eclipsed by next-door neighbour Provence, but which has recently come into its own. Numbers of nights spent by tourists in the region have risen by 15 per cent in the past 10 years, making Languedoc the fourth most popular tourist region in France, after Paris, Provence-Cote-d’Azur, and the Alps. In 2007, some 15 million tourists visited Languedoc, which means that demand for holiday accommodation is soaring - great news for anyone who owns a property in the area.
Languedoc and its capital city Montpellier continue to come out ahead of other French regions. Paddy Gibbins of Languedoc-based Buy to Let Montpellier explains: “To appreciate the potential of the Languedoc, it’s important to understand the role the growth of Montpellier has played, and its ripple effects. Over the last 20 years, it has grown from 30th to eighth largest French city; it’s also France’s fastest growing city. It boasts a proliferation of business parks offering tax incentives to companies that set up there, and in a 2006 study by KPMG, Montpellier was the number one European city for business set up and running costs.”
Montpellier’s university attracts over 60,000 students, who lend the city a youthful dynamism, and Montpellier figures in the top three cities where the French want to live and work, and the French statistics office (INSEE) estimates a net population increase of around 1000 per month, with this trend predicted to continue until 2030.
There has been massive investment in regional infrastructure: Sir Norman Foster’s masterpiece, the Millau viaduct, now directly connects Languedoc with the north of France via the new A75 motorway. The port at Sète is to be vastly increased in size to accommodate cruise ships. The high-speed TGV train link to Paris was finished in 2003, and it is possible to travel by train from Montpellier to London in less than six hours; a new motorway to Paris will be finished in 2010; a second tram in Montpellier was completed in 2006 and there is a third tramline scheduled for completion in 2012; and besides Montpellier’s own international airport, the region features four other airports (at Nîmes, Béziers, Carcassonne and Perpignan) offering low-cost, international flights.
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