French property agents have reported healthy growth and interest in the French property market so far this year and expect things to continue on a positive note for the rest of the year as the ski property season begins.

"Overall, the industry predicts French property prices will increase by around 5 per cent on last year by the end of 2007," says Stephane Mazade, French Sales Director for MRI Overseas Property.

Although the French property market remained quiet until May as property buyers and sellers waited to see what would happen with the elections and subsequent reforms mooted by new president Nicolas Sarkozy, the market has since been strong with industry experts reporting property price increases of 5 to 8 per cent and future predictions of even stronger growth.

"I predict that prices within the French property market will generally increase by 6 per cent to 8 per cent across the whole of 2007 but that we will see increases of around 15 per cent generally in 2008 with potential increases of 20 per cent on the prices of stone properties," says Niclas Dowlatshahi from Leapfrog Properties, a specialist in the French property sector.
 
The 'Sarkozy effect' seems to be encouraging both domestic and overseas property purchasers to invest in the French market.

"Our property price growth of around 6 per cent this year could even be expected to rise with the renewed interest from both new and existing clients since the election results - the Sarkozy effect has been very positive for the French property market in general in France and also for the economy," says Sarah Francis, Director of Sifex Ltd.

The new French president is expected to bring in radical tax reforms and goals of increased property ownership in the next few years, which are likely to strengthen the French property market further. "Due to these reforms there is a predicted increase in sales of 20,000 to 30,000 each year which in turn will fuel price rises," says Dowlatshahi.

French property experts note that demand from British and Irish buyers has significantly grown since last year, with property investors attracted by the relative security they see in the French as opposed to emerging markets. However, with an emerging trend of strengthened interest from French clients in older property, Francis advises that overseas buyers need to be "even more on their toes when trying to achieve the purchase of French property."

Indeed, MRI reports that the Languedoc and Cote d'Azur's increasing popularity with French property buyers looking to relocate to the south of France has seen the population of these regions grow by 32 per cent and 20 per cent respectively, which in turn is likely to have an impact on the property market in these areas. "Average property prices in these French areas could potentially rise to a higher level than the rest of the country as demand for property outstrips supply," says Mazade. "For overseas property buyers, these French regions offer a sound long term investment."

French government incentives are also encouraging overseas buyers to invest in the French ski property market, with early-bird purchasers beginning look into the market at this time of year.

"Buyers are increasingly taking advantage of the French government-backed VAT-refund incentive to buy freehold ownership of property that is then managed by a property maintenance company, enabling investors to benefit from annual returns without having to worry about rentals or maintenance," adds Mazade.

Whilst high property prices at the resorts of Val d'Isere & Courchevel are pricing many British buyers out of the French ski property market, the resorts of Tignes, Les Arcs, La Plagne, Avoriaz, St Gervais Les Bains in the Alps are becoming more popular with overseas buyers. Smaller villages within a 30-minute drive from the slopes are also popular with those seeking value for money property.

These French destinations further from the slopes are also becoming more popular due to concerns over the effects of climate change. "Concerns about climate change are making people cautious about investing in property totally designed for skiing and we are seeing a growing interest in property situated within an hour of ski resorts, giving French buyers other possible ways of spending their time, if the snow does not happen," says Trisha Mason from VEF.  "Pyrenees Atlantiques and Haute Provence are certainly favourite destinations for our clients. With Pyrenees Atlantiques, French property owners can enjoy skiing within an hour of the coast and the sea and in Haute Provence one can enjoy skiing and the joys of a Provencal lifestyle in the summer."

Studio, one- and two-bedroom ski-apartments (pictured) in Les Granges des Sept Laux resort in Prapoutel are currently available. The apartments are situated at the foot of one of the resort's major lifts and have access to a communal sauna, Turkish bath and residence lounge. Prices start from 119,820 euros and are available through Maison Individuelle.

Alternatively, a brand new three-bedroom ski property in the French area of Haute Provence is also on the market through VEF. The property is in the centre of La Joue du Loup and includes a terrace with views of the piste. It's on the market at 365,344 euros.

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Article first published 3 August 2007