Making Sense of France Housing Market

The real estate market in France and France housing is attractive to foreign investors because it remains stable, housing is in demand, new build projects are numerous and mortgage rates are low.

If you are relocating to France and looking to buy or rent a house, here are the essentials:

The demand for housing in big cities like Paris can make finding a rental property an arduous task for expats. Furthermore, be sure to avoid August and September to carry our your search if you can because of holidays and the start of the new school year.

If you are looking to secure a property before you are actually moving to France then rental services are probably your best option.

Before you start looking to rent a house in France be sure to research different areas and make sure you visit them at different times of the day.

For an overview of France accommodations, check the classifieds in the local and national press as well as in English language media. Check notice boards in local shops, language schools or your work place, search the internet or use a local estate agent.

French landlords can pick and choose their tenants so first impressions do count.

Once you have found a place and a landlord agrees to your tenancy, check the rental contract thoroughly. If your French is not up to scratch ensure you enlist some help before you sign. In particular look out for any applicable additional charges, your notice period and whether utilities are included in the monthly rental charge.

There are no restrictions on foreign ownership of French real estate so expats are free to invest.

Once you have found a property from the array of houses for sale in France you should make your offer through the estate agent. Once a price is agreed a notary or solicitor will draw up a first contract (compromis de vente), which details the agreement between seller and buyer. A buyer has seven days to pull out of the sale at this point. If the sale goes ahead a deposit of 10% is due and this essentially takes the property off the French real estate market.

Property searches are carried out but surveys are not done as a matter of course in France; you will need to specifically arrange a survey yourself if you want one.

A final contract will be drawn up (acte de vente) to seal the sale. Note that you should check the property on signing day before you sign the final contract as French real estate is sold as it is on the day of signing.

Mortgage rates in France tend to be low and work on the basis of repayment, although interest only mortgages are on the increase.

French banks lend money on the basis that your long-term loans (your French mortgage, any mortgage or rent at home and any other long-term borrowing you may have) make up no more than a third of your gross monthly earnings.