So why invest in off-plan real estate in France? Quite simply, France needs new property. There is a demand for two types; residential property for those wanting to rent a home, and holiday accommodation to support and bolster France’s thriving tourist industry. 

Most French real estate professionals agree that the country will need 1 million new homes by 2030. The reasons include a high divorce rate in France leading to split families, a relatively high birth rate by European standards (second only to Ireland) and a growing elderly population hanging onto their homes. According to magazine Le Point, only 58% of French own their home, against for example 84% in Spain and 71% in Britain. France also has a high student population and some cities, such as Toulouse with over 100 000 students, are desperate for apartments students can rent. So the opportunities for buying to let are clear. 
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Buy to let real estate for residential use is available in all sizes, from studios to 4 bedroom villas (although more usually apartments).  The properties are managed by a management company on a 3 year renewable lease.  After this time owners can elect to use the property themselves or sell it. The management company is contracted to maintain the property, find the tenants and guarantee a return, usually 3 – 5%. There are a range of insurances available that enable the rent to be paid whether the property is rented or not.

Just outside the centre of Bordeaux at St André de Cubzac, 20 minutes from the centre of town, we have apartments with one to three bedrooms, from 117 112€ - 192 316€, offering a return of 3.8% - 4.79%. We also have one and two bedroom apartments in central Bordeaux for 231 000€ - 335 000€, offering returns of around 3%.  Bordeaux, the city of wine, has in recent years undergone much modernisation and change including a new tramway and a renovated river front. 

Just outside the centre of Montpellier and near the golf course at Juvignac, and only 20 minutes from the Mediterranean, we have apartments and villas with 1 – 4 bedrooms, for 156 300€ - 319 200€, with a return up to 4.6%. Montpellier is the eighth biggest city in France and has seen a doubling of its population in the past 40 years. It is an attractive, university town with 60 000 students. The economy is orientated towards high-tech industries that attract a dynamic population. 
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Town Hall - Toulouse Market in Place du Capitol

Buy to let real estate is also sometimes available in tourist areas so investors who would like to use a property near the coast for example could initially let on a residential basis to help cover mortgage costs and then, if they so choose, let on a seasonal basis. We have apartments available near the centre of the Mediterranean town of Agde. The old town of black stone, carved out of local volcanic rock, is lively and full of character. Shady avenues lead to ornate, statuesque fountains and cool narrow streets are lined with boutiques and restaurants. Just up the road is Cap d’Agde, a modern, well planned and well maintained resort with some lovely beaches and all the facilities you could wish for, including an 18 holes golf course. Agde has a population of 20 000 and a growth of 1.4% a year so there is a demand for rental accommodation. The one and two bedroom apartments have 33.20m2 – 59.50m2 living space plus a terrace of 11.30m2 – 43.30m2 and parking. Prices are 129 000€ - 205 000€ with a 4% return.

Spring, summer and autumn health seekers and holiday makers come to Luchon for the waters and mountains. In the winter it is the turn of the skiers and winter sports fans. Luchon is an attractive, busy, elegant, year-round resort offering excellent 12 month rental possibilities – a good investment. 

Investors interested in leasebacks but unconcerned about using the property themselves could consider buying residences that offer the hotel-like facilities but for specific user groups such as students or the elderly. The returns can sometimes be very attractive.