French property sales holding up well as parts of the market remain popular

A glimpse of the Eiffel Tower, a view of the Mediterranean and the rolling landscape of the Normandy countryside are just some of the factors that are keeping property sales in France lively despite the global real estate downturn.

Properties in Paris, the Côte d'Azur and Normandy are continuing to sell as prices have become more realistic and demand has not disappeared. Indeed real estate professionals in these parts of France are reporting some signs of recovery in the market.

In their latest housing market report the French estate agents association FNAIM report that property prices fell by 1.7% in the first quarter of the year. This is considerably lower than in many o.......

French Riviera luxury property prices crash

The sprawling Villa Leopolda on the Cote d'Azur Photo: BIGPICTURESPHOTO.COM

When Russia's richest oligarch reportedly offered half a billion euros for Villa Leopolda in Cap Ferrat last year, it was in line to become the most expensive property in the world.

Shoebox in Sydney or a chateau in France

IF YOU are a first-home buyer who does not like the idea of spending $500,000 for an undistinguished, two-bedroom house in a middle-ring suburb of Sydney, perhaps you should look further afield.

While Sydney real estate prices have dropped, they have not been ravaged by the economic crisis as they have in many European countries. And the price crash is attracting overseas investors.

The managing director of Marsh and Parsons real estate agency in London, Peter Rollings, said prices had fallen massively. "[They] are down between 20-35 per cent since August 2007 and, on top of that, sterling also weakened dramatically … last year. As a result, we saw large numbers of overseas buyers coming to London buying blue-chip property at knock-down prices."

Some Nations Make It Easier for Nonresidents to Buy Property

Restrictions on foreign ownership exist mainly in emerging property markets. Most Western European countries, including the U.K., France and Italy, don't restrict foreign nationals from owning real estate. (Notable exceptions are Switzerland and Austria, which have established some foreign-buyer quotas to keep prices down in some ski towns.) The U.S. doesn't restrict foreigners from buying property.

Ways to restrict foreign investment aside from outright bans include high transfer taxes and limits on when and how much money investors can repatriate. Rules can differ depending whether the purchase is a residence or an investment.

To be sure, not all countries are choosing to loosen regulations. Some may crack down on foreign investment, blaming it for driving prices to unsustainable levels, says Danny Bance, managing partner of U.K.-based International Property Investment Network, a research and investment services provider for investors.