Property investors set to benefit as French hotels report rise in occupancy

Property investors set to benefit with the Office of Tourism reporting an annual 27 million visitors to inner Paris in 2006, French hotels are seeing a sharp rise in occupancy, pointing to a growing need to provide accommodation.

A survey by INSEE shows that in 2006 the average occupancy in approved hotels in Paris increased by 3.9 points compared to 2005, to reach 75.2% with occupancy rates showing to be highest in September, October and June. A data graph back to 1990, tracks a distinct rise in occupancy in the late 1990’s, a slight dip at the beginning of the 21st century then a strong continuous upward trend since 2002/2003 virtually back to the tremendous figures of 1999/2000 of around 75%.

Without doubt Paris is a magnet for tourists and business people alike. It boasted the biggest exhibitions centres in Europe in 2005 and is set to take back that title shortly. It hosts major trade shows throughout the year and in 2005 figures showed that there were 14.9 million business tourists. There is without doubt an overwhelming demand for short term accommodation and therefore huge potential for business and tourism residences, particularly under a leaseback scheme.

Paris is a city of culture, charm and sophistication. It was been wooing visitors for years. It also has a growing economy and with its new President, Nicolas Sarkozy set to formulate plans to promote property ownership by providing tax breaks of around 5 billion euros to encourage home ownership, the whole market place offers unsurpassed opportunities for rental return and capital growth.

Nova Park is a brand new development just five minutes travelling time from central Paris offering excellent accommodation to visitors and business travellers, making it perfect for property investors.

Nova Park is in Villejuif, a dynamic town of individual suburbs with direct transportation links via Metro or RER train into central Paris in just a few minutes. The apartments are also close to Charles de Gaulle and Roissy Internal Airports with regular flights to the UK and Ireland.

This is a new build project comprising fully fitted and furnished apartments only minutes from the Congress Area of Villejuif and boasts shops, supermarket, primary and secondary schools and sports stadium. The development is to be part of six buildings set harmoniously around a landscaped garden covering more than an acre of ground. This walled garden, which is to be planted with trees and crossed by paths, will create a rare living environment in the heart of the residence.

For the investor key factors are excellent location, strong management, guaranteed rental income up to 5%, and an immediate 19.6% discount off sale price as VAT paid by developer. This is affordable accommodation within minutes of central Paris. Also ideal for those who work in the nearby companies of Sanofi-Aventis, L’institut Pasteur, Chantelle Lingerie and Cegetel Services. Prices for Studios are from 111,000 euros and One bedroom apartments range from 187,000 euros to 282,000 euros.

Concluded Julien Lu, Regional Director for IMOINVEST International “With surveys showing a record figure of 14,946,849 visitors, overnight stays in Paris for the business tourism sector in 2005 one cannot neglect the tremendous need for accommodation. There is, therefore, huge potential for business and tourism residences under leaseback schemes which we at IMOINVEST can offer”.

For more information, visit imoinvest.com.