According to Crown expertise, long-term assignees in France usually share a common concern on their properties: to rent or to buy. If you are thinking of buying a property in France you might find the following information helpful. Property prices in France have almost doubled since the late 1990s, mainly caused by a strong confidence in steady income and an allowed growing indebtedness. To allow for larger loan repayments many banks have allowed longer re-payment terms over the years. There has also been an attempt through fiscal incentives to improve ancient housing affected by isolation, and heating problems. With recession at the doorstep of some countries within the EU, including France (the second largest economy in the Eurozone), the European Central Bank resolved by reducing the interest rate to promote new investments in business and private property alike. While interest rates are kept low, banks have allowed for longer duration of loans. Deposits required to obtain a mortgage have also been reduced. France has also seen a demographic growth in the last two decades, resulting in an increased demand for more and lager properties. This demand has come from the middle-age bracket in the position to buy. In spite of this, and lower interest rates, they haven’t invested in new properties The explanation can be found in their tensed income: due to increased tax pressure and to banks requiring more solid guarantees. High levels of unemployment, approximately 3.46 million unemployed in France, have caused a general lack of confidence in the future. Though France has not seen a major housing market crash as the US or Spain, there has been a slow price erosion in the property market. This could be explained by the presence of fewer buyers and a greater number of older population trying to sell their properties at values that won’t meet the demand. There is also a large disparity in property prices between many cities. Paris, in particular, presents a shortage of housing. The increase in mortgage regulations imposed by banks, has resulted in lower levels of indebtedness in French households. Despite these sombre perspectives, according to this article from telegraph.com.uk France will remain attractive to business for foreign investments as a recent OECD report has highlighted. Cheaper housing could contribute to some optimism on future evolutions, once the inevitable price corrections take place.