Expat Home Ownership in France
France, with its rich history, diverse landscapes, and renowned cultural scene, has been a magnet for expats for centuries. Whether it's the allure of Paris or the tranquil countryside of Provence, many foreigners have dreamt of owning a slice of this captivating land.
Over the years, expat home ownership in France has seen significant shifts in trends, influenced by global economic climates, national policies and evolving preferences.
1. The Golden Era: 1950s-1970s
Post Word War II, France emerged as an attractive destination for both tourists and those seeking a new life. With affordable property prices, particularly in the picturesque rural regions, expats mainly from the UK, the USA, and European countries started investing in holiday homes.
During this period, there were fewer bureaucratic hurdles. The simple legal processes made it easier for foreigners to buy homes, especially in regions like Normandie and Brittany.
2. The Upswing of the 1980s-1990s
The '80s and '90s saw the French real estate market skyrocket. Major cities like Paris, Nice, and Lyon became prime property locations. According to a report by BNP Paribas, by the late 1990s, approximately 15% of property buyers in the French Riviera were non-residents.
It was during this period that the French government started streamlining processes for foreign property buyers. Initiatives such as the "Leaseback" scheme in the late 1980s allowed expats to purchase a property and lease it back to a management company, offering tax benefits and guaranteed rental income.
3. The Impact of the 2008 Global Financial Crisis
The 2008 financial crisis brought challenges worldwide, and France was no exception. Property prices fell, particularly in the luxury market segment. However, many expats viewed this as an opportunity. With affluent buyers from Russia, China and the Middle East entering the market and taking advantage of depressed prices.
Despite the slowdown, a Société Générale report highlighted that by 2010, British citizens alone owned approximately 200,000 properties in France.
4. Recent Years: The Digital Age and Brexit Influences
The 2010s and the following years saw a rise in the number of young professionals and digital nomads considering France as their home. With better internet connectivity and flexible work conditions, regions like the Dordogne, Languedoc, and the Alps have seen a steady increase in foreign buyers.
Brexit, however, brought a new set of challenges. Uncertainty surrounding the UK's decision to leave the EU made British expats wary. Yet, in a twist, many opted to solidify their ties with France by investing in property, aiming to secure their EU residency status.
By 2020, according to The Local France, British nationals were the largest group of non-resident property owners in France, making up nearly 27% of the foreign property market.
What does the future hold?
Expat home ownership in France has experienced its ups and downs, influenced by global events and national policies. Yet, the allure of the French lifestyle, combined with a relatively stable real estate market, has ensured that France remains a top choice for those looking to make a foreign investment. As the world becomes more interconnected, and as France continues to offer its charming landscapes to expats, this trend is likely to persist.
