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1st for French Property has seen a massive jump in sales and enquiries in the year ending 2004. So we offer two views of the market - one from our perspective, and another on general market conditions.

During 2004, we have increased the number of properties from less than 1000 to over 3000 properties for sale with an average of over 500 new properties per month. The number of agencies has increased from 30 to over 75 and we offer coverage over most of France. We have seen our agency sales jump by over 300%. The number of Private Sale properties has increased from a handful to over 200 properties. And our private advertisers have enjoyed a successful year - one property sold within 4 hours of advertising.

This year, we introduced Leasebacks and this has been a very successful venture. We believe Leasebacks offered good returns for investors in 2004, and we expect the trend to continue in 2005.

Our most active markets? Of course, Brittany and Normandy remain a firm favourite for British buyers and despite increasing prices this remains a good market for us particularly at the cheaper end of the market. Our cheapest area Franche-Comte and Champagne-Ardennes has been extremely busy. We expect this area to be buoyant in 2005 as it still offers incredible value.

This year’s surprise packet? Well, the Limousin has been very active with many sales. The Limousin is an attractive region with good access by motorways, and RyanAir’s Limoges airport. Combine this with attractive prices and lovely summers, and it is no surprise that this area has taken off.

At the more expensive end of the market, we have seen increasing sales in Provence, Aquitaine and Midi-Pyrenees. The Languedoc-Roussillon has been disappointing probably due to the huge increase in prices (30%) in 2003. This year prices here have been stagnant with some good discounts on expensive property. Poitou Charentes has been influenced by the hotspot in the Dordogne, and prices have increased in the south of this region.

This year there has been a change in emphasis from the British buyer’s perspective; in previous years the holiday home has been king but in 2004 many more are buying a property for permanent residence. The Gites market has been very strong with those buyers looking for a lifestyle change. In the early half of 2004, there was a big mark-up in Gites complex prices. Generally gites complexes are still available at the end of 2004 but there is a dearth in the Langedoc-Roussillon and Provence regions.

Feed-back from our contacts in France suggest that the market has slowed down towards the end of 2004. This has been particularly noticeable in the South of France. So do not be afraid to negotiate on the price! In the North, property prices still seem to be rising so that bargain basement property at 10,000 euros is now a dream. Barns and farmhouses for renovation are still available but the French have recognised the demand from the UK market, and prices have moved up.

And in 2005….we expect the demand to continue from the UK. In France the economy has not been strong and there is relatively high unemployment. If the Euro market continues to improve in 2005 expect the internal demand for property to increase, this could fuel property prices in France. Where to buy? At the cheaper end of the market investigate Franche-Comte with its stunning rural countryside and mountains - this region next to Burgundy is waiting to be discovered. Provence will continue to attract the jetset. But on the south coast, we expect the Pyrenees-Orientales (around Perpignan) to become a firm favourite. The area is blessed with beaches, skiing and dramatic landscapes plus 200+ days of sunshine. Coupled with easy access by air from the cheap airlines with airports at Perpignan, Girona, Carcassonne, Toulouse and Montpelier, this department could rival the Provence. For investors, the increasing number of Leasebacks across France will be very enticing. With Phase 1’s selling out so quickly expect Leaseback prices to rise in 2005.