5 main reasons why American investors are interested in residential properties in France. Americans are attracted to real estate investment in France. France offers an attractive real estate market with historic and culturally rich real estate, which can be very attractive to international investors. In addition, the French real estate market can offer attractive returns, particularly in cities like Paris where rental demand is strong. Finally, some French laws offer tax incentives that can make real estate investment attractive to foreign investors, including Americans.
Over the last few months, we have seen a substantial increase in Americans buying French luxury properties. The 5 main reasons below could explain this trend.
Increasing of Purchasing Power
Since August 1, 2023, the value of the euro has decreased by 1.25% against the US dollar. Mondial Change, a specialist in international payments and foreign exchange risk, estimates that the optimal level for EUR/USD is 1.05 while it is currently at 1.08.
Thanks to a strong U.S. dollar, it allows American buyers to acquire luxury properties or larger homes in France at a lower cost compared to periods when the exchange rate is less favorable.
Potential for Property Appreciation
American investors may view luxury properties in desirable locations — the French Riviera, Paris, Courchevel… — as potential assets that could increase in value, providing a profitable return on investment.
Stable Real Estate Market & Security
France has a reputation for having a stable real estate market, particularly in prime locations. This stability can be attractive to American investors seeking a secure and reliable market for their luxury property investments. Americans are unsettled by the violence in America and wish to live in a safer environment.
Tax Considerations
France offers certain tax incentives on owning property . American investors may be attracted to these. Also for US source income there is a favorable tax treaty with France.
Rental Income Opportunities
Some American investors wish to live in France as their main residence, some of them may choose to rent out the property to vacationers or long-term tenants, providing a steady stream of income.
Based in Paris, Provence, Alps, the French Riviera and Aquitaine, WPBC agents have extensive experience in supporting foreign clients. Whether for legal, tax or financial questions, we coordinate actions for a profitable investment. Taking advice from a WPBC agent in France is essential as everyone’s circumstances are different.
Robert Anthony/AntCo
