We believe that Garrigae's leaseback scheme developments represent an excellent investment opportunity, with strong potential for capital appreciation in a stable, low risk economic environment.
- Buoyant property market: In recent years the French property market has been one of the most vibrant in the EU. Consistently for the last decade, both the Languedoc and Provence have outperformed the national index, with annual average growth of 9.8% over 10 years to 2005, some 50% above national house price inflation.
- Robust demand: The Languedoc is growing fast. A number of recent surveys have found that the Languedoc is now the most desirable department in France in which to live. Montpellier has for some years been the fastest growing city in France, with people from throughout the country attracted by the climate, cost of living and employment opportunities offered by the fast developing technology industry. Currently 4,600 new properties are built per year in the Languedoc with some 40,000 new people arriving in the region per annum. Figures recently published by INSEE forecast the population to increase by 32% in the period to 2030.
- Well priced: Despite the increases in prices across the South of France, prices continue to represent good value by Mediterranean standards, typically in the region of 25-40% lower than neighbouring Provence to the East or the Costa Brava/Barcelona region to the West. This discrepancy is larger still when pricing comparable waterfront property.
- Rapidly expanding international tourism: The Languedoc is experiencing rapid growth in international tourism and now welcomes 10 million visitors annually throughout a year round tourist season. This growth looks set to continue. Ryanair are forecasting to grow passenger numbers from 400,000 in 2005 to 700,000 by 2007 into Carcassonne airport alone. Despite the demand, the region suffers from a lack of vacation rental property, notably at the premium end of the market. This shortage has prompted a series of incentivisation initiatives at both local and national level, and represents a significant opportunity for developers, particularly in the leaseback market.
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