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France has seen a considerable boom in property pricing this decade. The FNAIM (Fédération Nationale de l‘Immobilier) report that since 2000 the French housing market has grown by over 70% as a whole. In addition there are few signs of the housing market slowing down. Recent statistics from the Knight Frank Global House Price Index stated that a year on year comparison from the 1st quarter of 2005 to the 1st quarter of 2006 showed an increase in property prices by 9.3%.

Due to the popularity of the French property market, it is becoming increasingly difficult to find the traditional French character properties that are known throughout the world and when these properties do become available it is not uncommon for buyers to pay a premium. Areas such as the Dordogne are now rather expensive to buy property, so property investors are targeting some of the lesser well known areas of France in the southwest region such as the Languedoc region.

France is a very popular holiday location for tourists and as such it is possible to receive good returns on rental property. You can expect to receive an 8% annual rental yield for a property in a popular French resort.

Property pricing in France can vary substantially based on location, but the following pricing can be used as a guide -

One bedroom apartment - €195,000
Two bedroom apartment - €265,000
Two bedroom villa - €285,000
Three bedroom villa - €345,000
Four bedroom villa - €445,000

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