Au Revoir London, Hello Paris!

France Home Finance, French based independent mortgage broker for non-residents and expatriates and Flat Hunter the premier buyers agent in Paris, are expecting the Parisian property market in 2008 to reach the market ideal of strong steady capital appreciation - but without the risk of a property bubble.

Home prices in Paris continued to climb steadily in 2007 with August representing the 8th month of consecutive increases.

Overall, the market saw a total increase of 8.4%, a growth that represents an ideal appreciation rate, balancing strong investment growth with affordability and safety - but without the over heated growth that can lead to a housing market bubble.

Despite the appreciation, Paris property price increases have dropped below the symbolic bar of +10% making it far more affordable than other global capital cities such as London, Amsterdam, Dublin, New York or Tokyo.

“For UK buyers, the sustained housing shortage in Paris represents the opportunity for top returns on real estate investment. Rental returns remain high as Paris maintains its position as the number one global tourist destination and the new high-speed train link has further increased its attraction as a weekend get-away” says Galenya Dubois from Flat Hunter.

The value of a Parisian property investment is further secured by the confined geographic area of the city. Constructible land is scarce and the high quality of life in Paris and its convenient location in the heart of Europe all contribute to its current position as one of the most sought after global locations.

Unlike investments in the US or UK, the French market is also safe from the impact of the global mortgage crisis.

“In France, mortgage lending is strictly based on the debt to revenue ratio. This means that it can be more difficult to obtain a French mortgage - but that is also the reason that the French banking system is so stable” says Tahminae Madani, the founder, France Home Finance, “In 2008 we would advise UK investors hoping to realise the dream of being French property owners to look into how they can leverage the solid appreciation and strong rental prospects of Paris property and to seek professional advice on their options.”

For further information, visit francehomefinance.com.