Paris Real Estate Bucks Recessionary Trend

France's capital, Paris, has been a direct benefactor of Sarkozy's two year reign as prime minister of France, and seems to be taking the economic climate in its stride.

Its property market has remained stable and even seen a price increase in apartments, which the Notaire de France\'s October 2008 report revealed had increased by 10% this year. The commuter towns surrounding Paris, such as Orleans, Tours and Reims, have also seen a healthy increase in house prices of 10.5%.

The right wing Sarkozy Government has brought in a raft of laws which continue to stimulate the construction industry and create sustained demand for residential property.

In quick response to these changes in the law, Pierre & Vacances has launched two investment opportunities in Paris one in the centre of Paris and the other in the business district of La Defense.

Paris Bastille Marais, is a seven-storey building located on a tree-lined street in one of Paris' most desirable areas, a stone's throw from the vibrant Place de la Bastille and the architecturally stunning Place des Vosges. Orly international airport is a 20-minute drive away, and the three closest Metro stations operate direct lines to the city's main train stations: the Gare du Nord (for Eurostar connections to the UK and Europe) and the Gares de l'Est, de Lyon and d'Austerlizt.

"This is a particularly exciting investment opportunity for a number of reasons," comments Nick Leach. "Paris is the most visited city in the world, attracting over 30 million visitors each year and giving these properties immense long-term investment potential. The Chambre des Notaires de Paris recorded capital growth of nine per cent over the last 12 months.

Nick Leach, P&V Head of Business Development UK and Ireland says: "These laws have incentivised promoters to build again especially because the tax benefits apply for properties delivered between now and 2012.

"There has been a definite increase in supply and demand for French leaseback properties as confidence returns to re-boost the French property market ahead of other countries. Foreign investors benefit indirectly from the knowledge that France remains a safe and stable place to invest."

"Other advantages for foreign investors buying French leaseback properties are the VAT rebate, guaranteed rental income (currently around 4% net of all charges and running costs with P&V). Rental income should be free of French income tax (as you can offset expenses, amortization, and mortgage interest) and free of French CGT after 15 years making it a compelling investment in one of the world's most stable and solid property markets."

Interested clients should contact P&V's London office on 0800 001 5551 to discuss investment options.