Strasbourg, in Alsace, France's smallest region in the north-east corner of the country, attracts thousands of tourists every year due to its proximity to the Vosges mountain range and desirable location between France and Germany.

As such, it is a popular region for overseas property buyers. Thanks to the three airports in the Alsace area, namely Strasbourg, Basel-Mulhouse and Baden Baden, the region has good international connections, with visitors and property buyers also able to access the area by train – the Eurostar to Paris connects to the TGV line and Paris-Strasbourg line at Gare de l'Est.

Strasbourg, Alsace's capital, is an important base for the European Union and the region also has good road links to Paris. Last year, properties in Strasbourg and its suburbs experienced a 17 per cent rise in capital appreciation and this figure is set to rocket in the next two years as the city is linked by TGV to the UK, Germany and other parts of France, increasing its importance as a central hub in Europe. Strasbourg is also host to some of Europe's most prestigious companies aswell as international business and organisations, and with low levels of unemployment and more and more people migrating to the city for work, premium property in the area is very scarce. "Strasbourg is mainly popular with the French and German market but does have some other foreign interest as well," says Niclas Dowlatshahi, Managing Director of Leapfrog Properties Europe. "The long-term letting market is good and many tourists visit for the Christmas market. However L'Orangerie district is in very high demand and as such prices of property for sale in Strasbourg are very expensive, fed by the German market across the border. Renovation projects are scarce so expect to pay a premium to live here."

The area around Strasbourg also holds many attractions and is famous for its regional dishes, Christmas markets, numerous nature reserves and vineyards – among the grapes grown in the region are the famous Riesling varieties and Pinot Noir – and Alsace's semicontinental climate means that the region is popular with wine-loving tourists and other pleasure-seeking visitors all-year round, making rental properties in the area popular and returns high.

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Article published 22 April 2008