The price of apartments in Paris rose by 10 percent at the tail end of last year despite the global credit crunch, according to a report by the Notaire de France.

The commuter towns surrounding Paris, such as Orleans, Tours and Reims, also saw an increase in house prices of 10.5 percent.

This rise, believe some property experts, is due to a raft of laws brought in by French President Nicolas Sarkozy which has stimulated the construction industry and created sustained demand for residential property.

In response to these changes in the law, Pierre & Vacances has launched two investment opportunities in Paris, one in the centre of the French capital and the other in the business district of La Defense.

Paris Bastille Marais is a seven-storey building located close to Place de la Bastille and the Place des Vosges. Orly international airport is a 20-minute drive away, and the three closest Metro stations operate direct lines to the city’s main train stations of the Gare du Nord (for Eurostar connections to the UK and Europe) and the Gares de l’Est, de Lyon and d’Austerlizt.

“This is a particularly exciting investment opportunity for a number of reasons,” said Nick Leach, P&V Head of Business Development UK and Ireland. “Paris is the most visited city in the world, attracting over 30 million visitors each year and giving these properties immense long-term investment potential. The Chambre des Notaires de Paris recorded capital growth of nine per cent over the last 12 months.”

Paris Bastille Marais contains 138 air-conditioned studio and one-bedroom apartments, each fully furnished and complete with kitchen appliances, TV and wi-fi internet access. Twenty-four hour porterage is provided, and there is a private garden at the centre of the building.

Prices start from €247,000 (excluding VAT, furniture and parking). The guaranteed annual rental return will be up to four per cent of the purchase price, index-linked to the Dwellings Rent Index of France, and net of all management charges and running costs. 100 percent mortgages are available on a repayment basis, and mortgages of up to 90 percent are available on an interest-only basis (subject to status).

La Défense Esplanade, in the west of Paris, is 10 minutes away from the Arc de Triomphe. Pierre & Vacances is offering 96 turnkey apartments from €252,320 to €527,113 (excl VAT). The accommodation ranges from studios to three-bedroom apartments including air conditioning, wife connection, flatscreen TV, kitchenette and more.

Leach added: “There has been a definite increase in supply and demand for French leaseback properties as confidence returns to re-boost the French property market ahead of other countries.

“Other advantages for foreign investors buying French leaseback properties are the VAT rebate and guaranteed rental income which is currently around 4 percent net of all charges and running costs with P&V.

“Rental income should be free of French income tax, as you can offset expenses, amortization, and mortgage interest, and free of French CGT after 15 years making it a compelling investment in one of the world’s most stable and solid property markets.”

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