Why are French homes so cheap? (2023)

Why are house prices so low in France?

France is about 1.5 times bigger than Germany but with a population 20% smaller. In effect, it has a larger rural area with less people to populate it. And as more and more people relocate to cities, more houses are being added to the market—often at bargain prices.

The French property market has proved to be remarkably resilient to the Covid-19 health crisis, with property prices forecast to continue rising by +3.5% during 2022. High rental yields - taking advantage of the unique high rental yields in the South of France, your investment will pay off within 15 years.

Property Trends In France

In France, real estate laws keep the mortgage value at about 70 to 80% LTV (loan-to-value). Putting in just a bit more money means you get beautiful properties with other facilities like spare land, swimming pool etc. at unbelievably low prices.

It's no secret that one of the reasons why there are so many 'bargain' châteaux are the exorbitant renovation costs and the relentless maintenance required. Structurally renovating a château could set you back an average of €1,000 per square metre.

Common pitfalls include purchasing a property without the right documentation (for example, surveys and planning permission certificates), underestimating the costs of renovations and extra fees, and signing contracts without fully understanding the implications of French law.

Not only is France an excellent place to work and live, but it is also an excellent place to retire. It is one of the most beautiful and refined European countries, with a perfect climate, delectable cuisine, and a culture that pulls you all in.

- CON: Cost of essentials

Many staples in France, such as fuel, food and clothes, are undeniably expensive. Value-added tax is applied to most goods and services. This tax can add considerable cost to a large purchase, like a car. Rent and home prices can also be quite high, depending on the area.

The median price for Houses on the market is €272,000. The asking price for 80% of properties falls within the range between €132,500 and €599,000. The average price per m² in France is €2,444 / m² (price per square meter).

Indeed, one of the reasons why there are so many vacant homes in France is because of French inheritance laws that divide an estate between the heirs, and a family feud between them prevents any early resolution. It may also be difficult (impossible) to trace one or more of the owners.

Yes, there are no restrictions on foreigners buying property in France. Even if you are not a resident, you can still buy and own French property with the option to rent it out if you want to. You will need a French bank account, valid identification, and the correct visa if you are going to live there.

What is the highest paying job in France?

Doctor/Physician

Being a doctor or a physician in any country is considered a respectable and lucrative job. The same is the case in France. Medical students who want to work in France can move there and practice effortlessly. As a matter of fact, it is the highest paying job in the country.

Flashy chateau purchases can generate resentment among neighbors. It's one of the reasons fewer young French people have been interested in chateaus. “For the French, outward signs of wealth or success are no longer a motivation,” Mr. Couturié told Le Figaro.

Olivier de Lorgeril, chairman of La Demeure historique, credits the upsurge in sales to the houses' expensive maintenance as well as to a shift in generational mindset. The chairman concludes, 'the younger generations are urban. They often want to have international careers and to live in towns and cities'.

With prices in Paris it is generally more practical to rent rather than buy, but buying is more common in rural areas. Property law in France generally favours the tenant, but it can be difficult to find suitable properties to rent in popular cities and neighbourhoods and this obviously has an impact on prices.

The temporary long-stay visa is valid for up to a year, although it is typically issued for stays of between four to six months (remember, if you plan to spend longer than six months in France, it is likely that you will be classed as living in France for tax purposes).

Estimates of the number of British citizens living in France vary from 170,000 to 400,000. Besides Paris, many British expatriates tend to be concentrated in the regions of southern France, Brittany, and recently the island of Corsica.

The France visa service requires evidence that you have income or funds of at least equivalent to the French minimum wage (salaire minimum interprofessionnel de croissance – SMIC). In 2022, the SMIC is €19,237 a year before deductions for tax and social contributions.

As we have demonstrated, there are lots of variables, but if you are a single person who does not need to pay for childcare, €1,800 net is a good guide for the amount of monthly income you will need.

The middle class in France earns between € 1,500 and € 2,800 net per month. In Paris, a good salary is often considered to be between € 3,000 and € 4,999 per month to allow a good living in the capital.

If you've ever been to France you'll know that it is one of the friendliest, most open and welcoming countries in the world, especially for people who only speak English and not a word of the French language.

Why do people leave France?

They are fleeing conflict, violence, persecution, discrimination or, increasingly, climate-related pressures. Their journey to safety is commonly dangerous, life-threatening and often traumatising. They want to find a place of safety where they can rebuild their lives. They have a protected right to do so.

France runs a statutory health insurance (SHI) system providing universal coverage for its residents. The system is financed through employee and employer contributions, and increasingly by earmarked taxes on a broad range of revenues.

As well as an unequal recovery, another problem for the government is that huge amounts of borrowing has pushed up France's debt pile to a record high. Earlier this year, France's national statistics office Insee reported that government debt stood at 115.7% of GDP at the end of 2020, up from 97.6% in 2019.

Life isn't necessarily slower in France. Many people thrive on being busy and defining themselves by their careers. There's nothing wrong with that. Certain people who move abroad aren't going to find themselves slowing down and appreciating life more.

Many people who move to France do so without being able to speak any French. Although it might be acceptable for certain professions, most expats will find that their having more fun as they pick up the language. Generally, people develop their language skills out of necessity.

Consumer Prices in Spain are 28.18% lower than in France (without rent). Consumer Prices Including Rent in Spain are 24.94% lower than in France. Rent Prices in Spain are 15.64% lower than in France. Restaurant Prices in Spain are 25.76% lower than in France.

Cost of Living

Paris is consistently ranked as one of the most expensive cities in the world (usually second to Singapore). Although Paris is a particularly popular expat destination, there are also other equally enticing areas of France with plenty to offer and all with a significantly lower cost of living.

Apartments – The Preferred Home

Most homes in France, whether in a town or a city, are rented apartments. French streets are embellished with rows of four or five-story buildings with large doors made of wood or metal.

In recent years the French government has made it easier to evict squatters from properties in France, expanding anti-squatter laws to cover second homes; accelerating the process of forced eviction; deploying legal clerks to help with the process; and removing the time limit in which you had to report squatters.

What happens to abandoned houses in France?

Abandoned property in France must be looked after by its owner, however if the situation is more complicated it is usually the mairie's responsibility. Reader question: My next-door neighbour died in 2011 and her house was passed to the state. The property is derelict and threatens my outbuilding.

Insalubrity, energy insecurity and indecent housing have a serious impact on the health of thousands of people. People living in sub-standard housing (which is overcrowded, damp, noisy, etc.) are 40% more likely to have health problems than the average person.

If you arrive in France from 2023 onwards (on a long stay visitor visa) and you decide that you want to live permanently in France, then you are still able to apply for French Residency.

There are two main property taxes in France, plus a wealth tax, according to Jessica Duterlay, a tax associate at Attorney-Counsel, a law firm with offices in London and Nice, France. The Taxe Foncière is a tax for all property owners, and is based on the cadastral income of the property, Ms.

Stamp duty is a tax on buying a house. In French, it's known as droit de mutation. The rate of stamp duty varies slightly between the departments of France, and depending on the age of the property. For properties more than 5 years old, stamp duty is 5.8%, or 5.08% in some departments.

A beautiful house, at half the U.K. price and living in a stress free sunny environment, this is why the British are buying French property.

A château (French pronunciation: ​[ʃɑˈto]; plural: châteaux) is a manor house or residence of the lord of the manor, or a fine country house of nobility or gentry, with or without fortifications, originally, and still most frequently, in French-speaking regions.

Can an American buy a French chateau?

U.S. citizens/residents may purchase French real property in their individual names. If they do so, the French real property, as immovable property and under international private law rules, will be governed by French inheritance and tax laws. This includes forced heirship rules.

For a large castle you could well expect to spend between 50,000 to 90,000 euros a year on running costs including lighting, heating, insurance and maintenance.

Abandoned doesn't mean without interest. France is a country full of abandoned spots such as castles, master houses or even sanatoriums that breathe history and that will give you the feeling to travel in time.

To the working classes, the castles that had been built, especially during the French renaissance, were a symbol of opulence, class distinction, and pure selfishness. As a result, during the French Revolution, many of these castles were destroyed, vandalized, or simply left abandoned by their fleeing owners.

Unsurprisingly, the greater Paris region of Ile-de-France is the richest in the country, even though the gap between richest and poorest is more striking than elsewhere.

France is a land of rich history, culture and diversity. It's a country that boasts beautiful people and stunning scenery. It has so much to offer from its bustling cities and quaint towns to its beautiful countryside. The French people are known for their laid back attitudes and impressive appreciation for food.

Comparing the cost of living in France

In a direct comparison of key spending between France and the UK, the website suggests that the overall cost of living in France is around 5% cheaper than it is in the UK, which is good news for British expats.

In fact, prices are already falling in Paris, Lyon and Nantes, while the market in and around Bordeaux has stagnated, according to agents. Notaires, too, have seen a drop in property purchases in 2022, and expect the market to dip to 2020 levels of about 1million sales, compared to 1.2million in 2021.

Tariff shield and nuclear power

These actions have kept the inflation rate well below that of most European economies. In addition, independent energy sources have made France less reliant on fossil fuel products, and therefore less vulnerable to energy price fluctuations.

House prices increases in France now stand at their highest levels since Q4 2011. FNAIM, the professional body for real estate agents in France is forecasting house price increases of +3.5% in France during 2022.

Where is the cheapest place to live in France?

Currently, France has higher overall debt than any other eurozone nation, including Portugal, Ireland, Italy, Greece and Spain, all of whom encountered severe financial problems in the years following the global financial crisis (Figure 1).

The worst inflation numbers come from Turkey, with their consumer price index (or CPI) at 80%.

Quarter after quarter, growth is slowing. GDP is expected to grow by 2.6% in 2022, according to the latest forecasts published Thursday, October 6.

Purchasing properties in France

As was hoped by many, the purchase process has remained very much the same for British nationals since Brexit.

France's property prices are generally lower than the UK and in the years between 2006 and 2015 French house prices increased by an average of only 2%, compared with a staggering 30% jump in house prices in the UK over the same period.

The minimum monthly earnings requirements has therefore increased from nothing to €1,329 net income per month for a single person and around €2,658 net income per month for a couple.