The property market in Paris and the suburbs is still hot, although capital appreciation in double figures is not quite as wide spread as during the last few years.

Paris is currently very popular for foreign investment as it is only ninth on the most expensive cities in the world, with average prices for prestigious property around 13,000 euros per square metre - far behind London where prices for similar types of property are around 40,000 euros per square metre.

Foreign property investment tends to be concentrated in certain areas, such as the golden triangle between Etoile and Montaigne. However, there are many areas of Paris to be considered depending on the level of risk and how long an investor wants to wait to benefit from the market.

For those keen to invest in up and coming areas and are prepared to hold onto their property for a while, the areas of Saint Denis to the North of Paris or Ivry Sur Seine to the South of Paris could be of interest. Both areas are well served by public transport and prices are still very low, especially in the case of Saint Denis. In the past, Saint Denis was considered as a rough area, somewhat like the Docklands in London. However, major investment and regeneration is seeing more and more top international businesses relocate to the area as commercial property is cheaper and large office spaces easier to come by. In turn, leading French developers are constructing many new residential properties in order to increase levels of accommodation in the area. Saint Denis has been appreciating in the region of 15–20 per cent per year for at least the last five years, and even this year is set to appreciate by approximately 12 per cent.

If an investment deemed safer and less risky is required, then why not in Paris itself? A premium will be paid for the property but Paris is Paris and property is still appreciating nicely. Depending on the arrondissement, purchasers can still expect capital appreciation in the region of 5–10 per cent per year.

However, don't just buy any property! Check transport links, local access and amenities and also the prices of similar properties in the area before you sign on the dotted line.

Sharon Hill is Director of Your French Property. Next week, Sharon will provide property investment insights into many of the other host cities for the Rugby World Cup.

Find out when matches of the 2007 Rugby World Cup will be played in Paris by clicking here.

Pictured: Development in Saint Maurice, France, available through Imoinvest. Prices for a studio apartment start at 113,000 euros; one- and two-bedroom apartments are also available.

Read the latest French Property Bulletin ezine FREE

Search for property in France

Request a FREE copy of World of Property magazine

Related article about property in Paris:
Living in Paris

Article first published 06 September 2007