French Property Prices - 2009 & 2010 Forecast

Current Situation (February, 2009)

Although house and property prices have seen dramatic declines recently in some countries (e.g. USA and UK), prices have been relatively stable in France. In fact, in January of 2009 there was a slight increase (0.6%) compared to the previous month. Furthermore, 2008 saw prices decline by only 2.5%, which did not even offset the 2007 increase of 3.8% (figures from FNAIM, France's national association of estate agents).
 
Unlike certain other countries (e.g. USA, UK, Spain), France is not experiencing large property price reductions. Instead, it has seen over the past 4 years a reduction in the rate of house inflation, with last year a moderate price reduction. The many predictions of a large fall of French property prices in 2008 have been proven incorrect and more recent predictions for a large fall in 2009 will likely prove equally incorrect (see remainder of article for discussion).
 
French Property Price Stability
 
Historically, France has had relatively stable prices. In any given year property may increase or decrease by a small amount, but traditionally prices have been broadly in line with inflation over both the medium and long term. From 1999 to 2006 there was a change from this traditional pattern, but market fundamentals are now reasserting themselves and the French property market has returned to its normal behavior since 2006.
 
Expectations that this will be followed by a period of large property deflation are based largely on the experiences in other countries (such as the UK, USA and Spain). However, such predictions do not take sufficient account of the important differences between these markets and the French market. To begin with, price inflation in France has been much lower than in these other countries, so the French property prices have not reached the excessive levels to be found elsewhere and consequently are under much less pressure to drop.
 
Limited Property Speculation
 
In France, property investment is generally much more conservative than in other countries. Property tends to be purchased as a long-term investment for a number of reasons:

Historically, France has had a stable property market, rather than the boom-bust trends found elsewhere. Consequently, there is not a perception that property can be used to make quick or easy money. Instead, it is purchased for one's own use, often later in life when one is settled and intends to remain in the same place for a considerable period of time. Alternatively, it is purchased as a long-term investment.
The costs of buying and selling property are relatively high in France, with estate agent fees typically double or even triple that found in the UK, while Notaire fees and taxes can consume 10% of the price of a property. Consequently, the price of a property needs to rise by up to 15% just to cover these fees, so one must hold onto a property for a longer period of time in order to profit.
French banks have substantially more conservative lending practices than elsewhere. A substantial deposit is typically required (as opposed to the 100% mortgages found in the UK), as is insurance to guarantee repayment. Furthermore, the large-scale lending to high risk borrowers (as found in the USA sub-prime mortgage market) is not to be found in France.

 
This view of property as a long-term investment, both by property owners and by banks, adds considerable stability to property prices. In the current economic crisis, the fact that France does not have a large number of high-risk borrowers is equally important. In the USA, as the economic situation has declined, many borrowers have defaulted on their mortgages and consequently a large number of properties are forced sales. These forced sales have reduced property prices, resulting in further mortgage defaults and additional forced sales. Thus, in the USA one sees a large increase in the supply of property, at the same time as demand for property is dropping due to the economic issues. The large drop in USA, UK and Spain property prices is due to this imbalance of supply and demand.
 
Although France, like all countries, has speculative property purchases and mortgage defaults, the levels are far lower than in other countries due to the reasons discussed above. Consequently, it has not seen a large increase in property supply and consequently is not experiencing the property price issues found elsewhere.
 
Property Demand
 
Although the French property market has been largely free of the issues found elsewhere in terms of property speculation, mortgage defaults and forced sales, it is suffering from a substantial decrease in demand. Within France, this decrease is partly due to economic issues and partly due to people holding off purchases due to lack of confidence about the future economic circumstances.
 
There is also a very significant drop in purchases of property by foreigners. Partly this is due to the global economic crisis, with associated economic difficulties and concerns. However, changes in currency rates also play a substantial role; for example the drop in the UK pound from its historical average of 1.5 euros/pound to the current 1.1 euros/pound means that French property is now far more expensive for UK buyers. Furthermore, in addition to making property more expensive, those who are dependent on a UK income find that the currency rate changes make the cost of living in France much higher than a year ago. Finally, for those who would sell their UK property to fund the purchase of a French property, the drop in UK property prices mean that they would have less money. Similar difficulties are faced by potential buyers from USA and a number of other countries.
 
Although the decline in foreign purchases has only a limited effect on the overall market, it has a disproportionate effect on certain types of properties where the foreign buyer makes up a substantial segment. These include character properties (e.g. farmhouses in need of restoration, chateaux) and high-end properties in areas particularly favoured by foreign buyers (e.g. Provence). Consequently, the significant reduction in foreign clients has contributed to these types of properties falling more than the market average (in some cases, drops of 20% to 30% versus the market average decline of 2.5%).
 
Outlook for 2009, 2010
 
The overall French property market should continue to be relatively stable. Overall, it is likely there will be small declines over the next two years, although there will be months in which prices increase (such as January, 2009). However, in property segments where foreign buyers have a significant influence, prices will remain very depressed until the international economic situation improves.

Top Ten Things to Visit in France

When you're in the magnificent country of France, the question is not what you should do, the question is what is there that's not to do? It seems that the liberated air of Parisians is contagious, and all you want to do when you're in Paris is to be as free and artistic and relaxed as any regular Parisian you meet on the street. Coffee in one hand and crepe in the other, what else is better than eating it al fresco in the cool Parisian morning breeze?

1.) The Louvre

First stop is almost always the most famous art museum in the history of France and probably the world, The Louvre. It houses some great artistic talents including the famously infamous Leonardo da Vinci. His Mona Lisa is still the top attraction, and that secretive, knowing smile of hers is always a must-see.

2.) The Eiffel Tower

Next on the list is, of course, the Eiffel Tower. It was once ridiculed by ancient artists as a monstrosity but is now regarded as one of Paris, France's best works of art. Inside, you can get souvenirs, have your postcards stamped with the Eiffel Tower insignia and dine in their restaurants.

3.) French Riviera

Within its borders, you will find the famous tourist destinations Nice, Cannes and St. Tropez. Its beaches are so breathtaking and magnificent, and they are perfect for a romantic rendezvous. The scene also becomes a little wilder once the parties get rolling in the evenings.

4.) The Cathedral of Notre Dame

Victor Hugo's famous book has this as the backdrop of his entire story where we all learned to love the brave and endearing hunchback. Famous for its stone architecture complete with towering religious icons, gothic design capturing different faces of gargoyles, the Notre Dame Cathedral shouldn't be missed. As such, this place should always be in the itinerary of anyone visiting France.

5.) Napoleon's Arc de Triomphe

This was built in honor of the French military who fought alongside Napoleon, and this is one of France's famous historic landmarks. Some say that if you don't know your way around Paris, you could end up going around in circles in the Arc de Triomphe and never get out. They also say that you could get so confused which way to go because traffic is going around the arc.

6.) Disneyland

Paris, too, has a Disneyland of its own. It has the trademark rides, parades, fireworks display, and attractions all Disneyland theme parks are famous for. But, of course, there is still something that is uniquely France's alone.

7.) Historic Normandy

Perhaps the most famous place in France when it comes to history is Normandy. Normandy has seen too many wars and fought too many battles for France. The most famous event here is the burning of Joan of Arc in 1431.

8.) Lourdes

The apparitions of the Blessed Virgin Mary during the 19th century to Bernadette Soubirous have made this place a popular destination for pilgrims and devotees of the Blessed Virgin Mary. As such, this place has also become a tourist destination. If you are a devotee of the Blessed Virgin Mary, then this place is for you.

9.) Musee d'Orsay

This magnificent museum of art found inside a railway station is a testimony of how much the French love and revere art. Because of this, they will impart this love to anyone and everyone who is interested. So, if you are an art lover, then head on to Musee d'Orsay.

10.) Vineyards

France is famous for its wine tours. You can take your pick from Alsace to Rhone Valley on which vineyards to visit where you can do a little wine tasting or perhaps even jump in and join grape harvesting. Truly a uniquely French experience!

Employment Law In France - Vive La Difference!

The Law for Employment, followed in France is different! It is unique in its own manner. An ideal law, found nowhere else in this world. This is just a synopsis on what is all the hue about.

You are fired! These three words are not to be made common according to this law. This means that, the circumstances and the boundary line for throwing out an employee are more restricted. Employment law in France is not out of their wish, not as one opts for. The reasons for the employee being thrown out ought to be brought to his or her notice.

On an over view, the law implies that, firing or dismissing an employee is a formal practice and is no melodrama! There a certain set of very complex procedures and rules to be followed, to sack the person.

Apart from dismissing the employee, the second eye catching regulation that makes the Law for Employment in France, ideal from other countries is lay offs. These lay offs are also known as redundancies. Considering the constraints of the regime's economy, lay offs also has a set of convoluted restraints and principles to be followed. These are provided exclusively for the effect of lay offs in mass in particular.

A peculiar fact in this Labor Law of France is their processing towards legitimacy, in which, the entity of France, should be financially in debt, to justify their actions in firing one of the staffs or rendering them superfluous. Due to this, as such, certain agencies of the State of France have the authority to get the info on the laying off of any of the faculty members of private sector units.

This methodology or the tradition followed, is beneficial in one way, and secures the state as well, by the fact that the organizations that want to process the laying off of the staffs, have to rely on other agencies that are run independently. In this way, it also paves the way for a second opportunity for them.

A not so expensive and not very difficult task for an employee is, starting a law suit in opposition to her or her previous employer. The courts file their complaint and the judges are elected by the employees or the employer, themselves. The courts that deal with relationships between the labourers and their employers is called Conseils de Prud'homme. As compared to the United States, where you become a pauper if you file a law suit, France legitimacy is more acceptable and reasonable.

In France it is a rare sight for dismissing claims without the employer being awarded in opposition to him or her. This is so unlike the law followed in US. These kinds of claims are generally made on consideration of each case.

Camping in France - How To Go Budget Family Camping in France

Budget family camping trips have usually centered around vacationing in a mobile home, or Italy, but with increasing awareness about the spectacular locales offered by France, there is an increasing trend towards budget family camping in France now, too!

Many people have not been aware of France having the potential for a budget camping trip, but its possibilities surprise them; this is because France offers many picturesque locales as well as activities for a family vacation to be successful and enjoyable. Those heading for the Pyrenees will find many budget family camping France locations that are scenic, serene and cost-effective too.

The first step to making a family camping in France's experience a great one is to begin with finding a good deal on fairly-priced airline tickets that are affordable for the full family trip, since getting to France is typically the costliest part of the trip. A budget family camping tickets set can be bought well in advance of the intended vacation plan time and tickets available off-season (outside of busy tourist times) are usually most affordable. Experts recommend buying airline tickets in the fall since summer is peak-season most places and therefore tickets expensive too.

Once tickets have been bought, you can plan ahead for the family camping France trip by checking for campsite reservations well in advance of your vacation and even if there isn't much scope for getting a discount here, this step ensures you won't be stuck with a much higher rate, which is the case with last minute reservations. One way to get this step out of the way is to get online to reserve specific campsites; discussing with the local tourism boards about getting backcountry permits that allow you to choose various camping sites for your family camping France holiday is yet another smart way of getting the right information - and at lower rates.

Besides the above tips on limiting the expenditure on your budget family camping France holiday, you can also keep expenses down by bringing in the maximum camping gear with you that you can comfortably carry along as the other option (buying your equipment in France is an expensive and time consuming proposition). In these ways, (bringing along your sleeping bags and cooking equipment etc.) you can tone down much of the numbers on the large price tag of a budget Family camping trip in France and will be ready to migrate, as soon as you arrive from the airport departure lounge.

So you can well understand the reason for the increasing popularity of budget family camping France for the modern backpacker who wants a very nice view attractive opportunities will budget stay in a cottage and avoid unsustainable pricing of hotel accommodation provided by local, while traveling in France a , quiet and an easy passage at affordable pricestoo!

Holidays in Lorraine, France

Lorraine is one the 26 administrative regions of France and is located in the northeast of the country near to the German border. There are two major cities in the area of Lorraine, Metz and Nancy, as well as lots of countryside for hikers and cyclists to explore. The region has its own strong culture, including local German dialects, though everyone you meet will also speak French. While visiting, you should try the specialty of the area: Quiche Lorraine.

Metz and Nancy

Metz is considered the capital of the Lorraine region and is a town that dates from Roman times. There are numerous churches in the modern town of Metz that are worth visiting, including the Gothic cathedral of St Stephen and a Romanesque Protestant church on an island in the Jardin d'Amour or Garden of Love. The city is also home to a branch of Paris' Pompidou centre, displaying works of contemporary art from the permanent collection in the capital. The museums of Metz, also known as the Golden Courtyard, are split into four sections covering archaeology, medieval history, architecture and fine arts.

Nancy is home to the impressive Place Stanislas at the heart of the town. In the summer, there are pavement cafés and street performers in the square, but it is still worth visiting the UNESCO World Heritage Site at any other time of the year. The city has a strong art nouveau connection, which influences many of the buildings you can still see today and can be seen in many of the artefacts at the Musee de l'Ecole de Nancy. If you want to escape the city streets, there is also a botanical garden in the town, an aquarium and a museum dedicated to the history and culture of Lorraine.

Outdoor activities

The landscape in the Lorraine region is ideally suited to three sports; walking, riding and mountain biking, though there are also winter sports areas in the region when the snow is falling. One of the more unusual ways of exploring the region is on a "rail bike" or drasine. This unusual contraption uses an old railway line through some of the most beautiful Lorraine countryside that was closed in the 1990s. Now families can climb aboard a rail bike and cycle along the track enjoying the view without having to worry about traffic. Children may also enjoy a donkey ride in the Vosges Mountains or a ride on a motorised Skidoo if you're visiting in the winter.

The Minervois, France

The Minervois is always different: plane and sea, heath and mountains, and never ending vineyards. Grapes have been cultivated in the Minervois since the age of the Gallo-Romans. Today Minervois is the most famous wine-growing area of the Languedoc-Roussillon in the south of France. But there is much more to discover than wine: prehestorical grottos, countless Roman churches, the abbey of Caunes near Rieux-Minervois, beautiful villages along the Canal du Midi.??

Whether walking or riding a bike alongside it, gazing up to the clouds while lazing on the deck of a canal boat while it winds its way along its tranquil path, picnicking on its banks, or enjoying the pleasure of a Minervois wine in one of its many restaurants, the Canal du Midi offers an escape into tranquility and aesthetic beauty.

In the 17th century, with only shovels, over 12 000 men made possible the seemingly impossible dream of Pierre-Paul Riquet, to create a waterway that would link the Mediterranean and Atlantic seas. The 360km stretch of water, which is the Canal du Midi encompasses over 300 structures. It is a navigable route incorporating aqueducts, bridges (two of which are canal bridges which cross the rivers of the Cesse and Répundre), tunnels, paths for horses to pull boats, resting areas for travelers and animals and most importantly 156 locks, many of which have become tourist stops and promenades today.

The canal, a sacred path, marvelous under its foliage of high plane trees, has allowed generations of locals to export more easily their products, most importantly their wine! Nowadays, the Canal du Midi stands as not only an engineering masterpiece but also a beautiful work of art, appreciated by locals and tourists alike.

The Minervois belongs to both the Departments Aude and Hèrault, with its 68 communities being the smallest administrative region of France ?Nowadays Minervois is the wine-growing region number one of Languedoc-Roussillon; first of all due to the seven communities producing A.O.C. wines, with the best of it being Pic de Loup in Hérault. ??Still nowadays Minervois is a land of vineyards and agriculture, with a splendid landscape and beautiful villages and small cities along the Canal du Midi. Tourism is nowadays if utmost importance for the Minervois and the landscape offers everything to attract visitors.

One of the major landmarks of the Minervois, the cité of Minerve has been widely visited and re-visited, photographed and painted, written about numerous times and is also listed as one of the most beautiful villages in France. It is an old unassailable city, impressive not only for its location, perched on a rock surrounded by a two deep gorges, but for its wild history which includes the cathar burnings of 1210. However, long before this time, throughout the Brian and the Cesse rivers, prehistoric life was rich. In just about every cave throughout these gorges remnants of prehistoric life has been found. Nowadays, Minerve is a lively village that celebrates largely in festival. La fête de la Pierre (The festival of the rock) in August and Les Chemins de Minerve (the roads to Minerve) in October and November.

Modern Troubadours (street performers) have changed a lot, with their modern clothes and new songs, however they reappear in traditional form during times of festival to please the young and old in this beautiful environment of old stones.

The circular village of Aigne. Another site you cannot miss! The moment you walk through the main entrance of the circular village you are in a time warp reaching back to the Middle Ages. An overwhelming sense of history is felt throughout the entire Minervois and this circular village has certainly seen the hardships and the good times, which have marked the region. The historical buildings and village is faithfully maintained within a wavy landscape of little hills (les mourels).

The main street snakes its way into the centre of the village where sculptors, painters and other artists influence the village atmosphere. The church, like an
open history book, dedicated to Saint Martin, has a XI century old Roman nave, XIV century gothic style, and XVIII century old fresco. Wander around like the folk of the past did, centuries ago, when strolling peacefully was common.

There are also great opportunities to invest in the Minervois. It has probably the best selection of quaint, characterful villages in the whole of the Languedoc. If you would like to buy a cottage, house or villa in the region, have a look at the facts.

The Languedoc has seen some of the highest rises in property prices in the whole of France over the last 7 years. Cottages and village houses have been turned into Gite and B&B (Chambre d'Hote) as visitor numbers have been swelling over the last 5 years. To buy a house/ cottage in need of work, you will need to invest about 50 000 euros to acquire the property. Then, a sum to invest of around the same amount, will give you a beautiful home to live in.

It just remains to say, that the Minervois, in the Languedoc, south of France, is one of the most beautiful regions in the whole of France. Come soon, invest in it, and enjoy a great quality of life.

Renovation Works in France - The Rules to Comply With

Thus, for light renovation works (repairs, internal repainting, laying of new floor etc) no particular authorisation is required. This extends to heavy renovation but not exceeding a surface area of two square meters.

For heavy renovations, namely works carried out with a view to change the use of a construction (e.g. turning a barn into habitation or an office into a dwelling, changing the external aspect of a building, its volume or number of floors, the addition of a balcony or Terrace, etc.) require a registration form, as defined in the scope of the Code within urban "Code de l'urbanisme ', the map for land use (" Plan of Employment of the Sun "(POS) or" Plan d 'urbanisme local (PLU), and in the case of joint ownership, co-owner of rules ("règlement de copropriété).

The permit may be required and a statement of work ("Déclaration de travaux") or a building permit (Permis deconstruire").

Declaration of works: A declaration of works will be required for works of a lesser importance such as:

- Constructions or extensions creating a gross surface not exceeding 20 m² (garden sheds, conservatories etc);

- Transformation of over 10 m² of gross surface into net surface (e.g. turning a garage into habitation);

- The change of use of an existing construction without doing any works;

- Works modifying the external aspect of an existing building (re-doing the rendering of the outside walls, changing of woodworks, replacing or enlarging windows and doors, roof repairs, changes on shop windows etc.

In certain cases, such as if the property is in the vicinity of a listed building or a historical monument (i.e. such as a Church), additional formalities will apply (such as notification to the "Architecte des Bâtiments de France".

The file which needs to be put together in order to file a declaration of works must contain the following documents:

A declaration form, filled in and signed, accompanying with a situation plan showing access roads etc, a volume plan, a description of the works, pictures, indication of where the works will take place (e.g. indication of the location of the future garden shed). Additional documents may be needed depending on the type of work involved:

- for the modification of a front elevation: a plan of the current façade and a plan of the façade after the works;

- for the creation of a fence: an elevation plan of the fence; - for the re-rendering of a front elevation or roof repairs: a quote with a description of the works;

- all the plans of the construction for constructions of less than 20 m² gross surface;

- for the transformation of an attic: plan of the current façade and future façade, section plan of the building currently and after the works.

The services of an architect are not required for a declaration of works.

The file must be sent to the local division of the Direction de l'Urbanisme, du Développement et de l'Habitat, and it must be supplied in three copies minimum. The file is then examined for up to one month (two months if the Architecte des Batiments de France has to be consulted).

If the works are not started within two years or if, after such period, they are interrupted for a period of over a year, the declaration is lapsed and the process has to be started again.

Planning permission: a planning permission is compulsory for:

- Any construction creating a gross surface of over 20 m²; - Including those without foundations; - Changes of destination, accompanied with the works modifying supporting walls or front elevations; - Modifications of the volume of a construction, or the opening or widening of apertures on external walls in certain cases.

It is to be noted that a planning permission is also necessary for constructions with no foundations, buried constructions (such as cellars etc) or unusual structures (such as inflatable structures etc).

The planning permission file must containing a number of documents in four original copies (plus an additional one where the "Architecte des Bâtiments de France" must be consulted). The file must be sent to the Direction de l'Urbanisme, du Développement et de l'Habitat. The documents necessary will be obtained by an architect, the use of which is compulsory.

The time frame for the examination of the file is 3 months from the time the file is complete. The administration has a period of 1 month from the filing of the application to inform you that:

- Additional documents must be supplied;

- And/or that the basic 3 months instruction period must be extended, such as in the following cases:

- It is extended to six months where the project is situated within the perimeter of protection of historical monuments or if it involves a construction receiving members of the public;

- It is extended by one month for works situated within the perimeter of the plan for the preservation and the enhancement of the town.

The permission is deemed granted if the administration fails to respond within the time allocated. The permission will be lapsed if the works are not undertaken within the period of two years from the last date of notification of the decision or from the date of the implied decision (in In case of non-response), or after, that if the work is interrupted for more than 1 year.

Both the beginning and end of work, the administration will be explained.

denied a building permit or if it is challenged by a third party, is recommended to use the services of a lawyer of French language skills in the field of construction law.