Foreign investment in France in 2024

Foreign investment in France in 2024 plays a crucial role in the country’s economy, and current trends reflect a growing interest in the French real estate market. Foreign investors are attracted by France’s political and economic stability, as well as its diversified and attractive real estate market. In this article, Agence Etoile explores current trends in foreign investment in France and the opportunities that present themselves in this dynamic market.

Investment in residential real estate

Foreign investors are focusing on major French cities such as Paris, Lyon and Nice to invest in residential real estate. Demand for quality properties in strategic locations remains high, particularly among investors from countries such as China, the United States and the Middle East.

According to Robert Anthony, member of the World Property Business Club, “Foreigners appreciate our attractive real estate market with historic and culturally rich real estate. With significant price drops, new investment opportunities present themselves. Finally, certain French laws offer tax incentives likely to make real estate investment attractive for foreign investors, particularly Americans. »

Business Development

The commercial real estate market in France is also attracting foreign investors, with growing interest in offices, shopping centers and coworking spaces. Large French metropolises offer attractive opportunities for investments in the commercial sector.

In its latest attractiveness barometer, EY notes that France remains the most attractive European country, despite a 5% decline in projects. The United Kingdom appears in second position, then Germany with a 12% drop in projects. London remains the most attractive European city for foreign investors. Paris is hot on her heels.

Tourism and Hospitality

The tourism and hospitality sector in France continues to attract foreign investors due to the country’s global reputation for its tourist destinations. Acquisitions of luxury hotels and tourist properties are on the rise, particularly in the capital and seaside resorts. In Nice for example, the Thai group Minor Hotel bought the Boscolo Plaza, renamed the Anantare Plaza which became a 5 star hotel. Minor Hotels will also open 3 addresses in Paris: NH Paris Gare de l’Est (207 rooms) and NH Opéra Paris Faubourg (103 rooms). The third establishment with 90 rooms will open its doors under the name NH Paris Champs-Elysées and will then be renamed in 2025 under the name NH Collection after renovation.

In 2023, North and South American travelers returned (+5% in July, +8% in August), as did those from Asia-Pacific (+81% in July and August). Local European customers also flocked in August, notably the Dutch (+26% in outdoor hotels), the British (+9%), and the Germans (+15%). These are customers for the hotel industry and for seasonal rentals.

Opportunities and challenges for foreign investors

Foreign investors in France benefit from a diversified real estate market, a highly qualified workforce and quality infrastructure. However, challenges such as complex tax regulations and fluctuations in the real estate market can influence investment decisions. Despite these challenges, France remains an attractive choice for foreign investors looking for stability and sustainable returns.

Current trends in foreign investment in France reflect a climate of opportunity and growth in the real estate sector. Whether in residential, commercial or tourist real estate, France continues to attract investors from around the world because of its economic attractiveness and its yield potential.

The Agence Etoile network advises you on foreign investment opportunities in France, as well as on investment opportunities abroad.

André Perrissel