Lyon, which has already hosted the mighty All Blacks and Australians during the early days of the Rugby World Cup, is often driven through but never visited and yet it's a beautiful city with a strong cultural heritage and fascinating architecture. Motorists unfortunately drive through the most unattractive part of the town as they cross it on the motorway and unfortunately never stop to visit, yet alone to consider buying property.

The departmental capital of the Rhone, Lyon has all the benefits of a major city, yet at the same time all the advantages of its easy-to-reach surrounding countryside, its proximity to the Alps, to Geneva and to the South of France. A real crossroads in the heart of France, Lyon offers diversity and is doing extremely well in the property boom due to its strategic location, international airport and great transport links.

Lyon, therefore, is an investors dream but is often ignored in favour of Paris or the Cote d'Azur. Investors here can benefit from steady capital appreciation and good rental income, whether they buy a leaseback or a buy to let property. Prices have risen by over 25 per cent since 2005 and are set to continue rising with the radical regeneration of certain districts, such as Charlemagne, La Duchere, Berthelot and generally speaking the 7th and 8th districts as well as Villeurbanne.

Investors looking to purchase in Lyon should seek properties with access to the metro or tube systems and should aim to purchase smaller properties (that is, one bedroom) as these are more sought after and sell extremely well on the resale market.

St Etienne, host to some of Scotland's games, has enjoyed price rises of 94.8 per cent over the last six years, and prices are still set to rise by another 6–7 per cent in 2007. This, moreover, is expected to continue into the future as St Etienne works hard to regenerate itself.

Between 1976 and 2000 very little regeneration work took place in St Etienne and it was known as more of an industrial town. Since 2000, the town has become unrecognisable with many regeneration projects and improvements, including a city of design, a new business district and the renovation of building fronts to name but a few.

Prices here are lower than most other cities in France; the starting price for a one- or two-bedroom apartment in the fashionable areas such as Badouillere or the centre is 1,500 euros per square metre.

Marseille, host to two of the Rugby World Cup quarter-finals, is now benefiting from a strong regeneration programme, and continues to emerge as a property hotspot.

Whilst sales slowed in the latter part of 2006, mainly due to the increase in interest rates and unsettlement due to the French presidential elections, Marseille is still set to enjoy prices increases in the future – although not perhaps in the double figures as we have seen in previous years.

The regeneration of Marseille is important as it goes from being a city that's rough around the edges to a cosmopolitan place to live and work. IN fact, it is now being considered as 'branche' – trendy! There is a strong requirement in terms of residential accommodation, which is not being met today. However, leaseback developments aimed at both the tourist and student market are available, with apartments in one well-situated development [pictured] suited to the latter market available for 92,000 euros.

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Article first published 20 September 2007