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Limousin property: Stretching its price growth in 2008

Will the property market of the 'new Provence' continue to benefit from high prices in surrounding hotspots?

Limousin property: Stretching its price growth in 2008

In 2005, France's Le Monde newspaper labelled the region of Limousin the 'new Provence' in lieu of the sudden influx of Brits looking to buy a property in the region.

Three years on and it would seem little has changed. Statistics show that over 8,000 homes in the region are now owned by Brits, with an estimated 3,200 living there permanently – representing more than a 200 per cent increase in the British expat population since 2000.

And British interest in the region shows no sign of waning just yet.

Located in central France and split into three departments – Corrèze, Creuse and Haute-Vienne – Limousin is an extremely rural region, packed with rolling hills, forests, lakes and rivers.

However, attractive as Limousin is, it is the region's property prices that have been largely responsible for drawing the attention of an increasing number of British property buyers to the region.

"Property in the Limousin has become very popular in recent years due to the relatively high price of property in the neighbouring department of the Dordogne which historically has been the number one location in south-west France for British buyers," says Frances McKay of Francophiles Ltd. "The Limousin is a much cheaper alternative," she adds.

Indeed, according to figures released by the Federation Nationale des Agents Immobiliers et Mandataires (FNAIM) – the French estate agents federation – towards the end of 2007, the average price of a property in the region's capital, Limoges, was 1,649 euros per square metre – one of the lowest in France. This is in spite of the fact that the region has experienced average property price increases in excess of 20 per cent in the last few years, and further growth of between 8 and 10 per cent is expected for 2008.