(1888PressRelease)
February 26, 2007 - The French capital was closely followed by Edinburgh and Cote D'Azur in the south of France in the Homebuyer Show poll, which emphasised that property investors should be wary not only of the rate of capital appreciation but also its rental potential.
Last week it emerged that France was the world's most popular tourist destination, with 78 million people visiting the country over the course of 2006 and Paris is one of its main cultural assets.
Monuments such as the Eiffel Tower and the Arc de Triomphe are iconic symbols the world over and are permanently in high tourist demand.
Cultural and artistic centres of the Sacre-Coeur, the Louver and Notre Dame Cathedral among others make Paris unique and ensure that there is a constant flow of visitors to the city.
The Royal Institution of Chartered Surveyors recently estimated that French house price inflation is currently growing at seven per cent while Knight Frank put annual prices as going up by 8.9 per cent in the third quarter of 2006, illustrating that investors are in for high returns on investment in terms of asset growth.
But France's tourist demand adds an extra facet to its property, one that is rarely found outside of Europe's largest economies. For example, investors in Eastern Europe are currently having trouble securing lucrative rental yields as supply of homes is outpacing tourist demand.
Meanwhile, the Cote D'Azur also ranked highly, showing that the warmer weather can also spice up couples' love lives. The coast's white sandy beaches, chic boutiques and internationally renowned restaurants has a tourist draw not to be ignored, as Martin Sadler, sales manager of Assetz France, explained.
"The French Riviera is still one of the most popular tourist locations and offers excellent potential for holiday lets with high rental returns," he said.
"There are still plenty of property investment opportunities in the region with a wide choice, on offer to suit a range of budgets."
Properties along the French Riviera, especially in the popular region between Nice and Cannes, begin at €165,000 (£110,000) and have a high rental potential, particularly when the world famous Cannes Film Festival rolls into town.
