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French Property: Its Reputation in European and Global Real Estate
France has always held a steady position in the European real estate market, even with slight fluctuations since the start of the financial crisis. France has earned a solid reputation in international commercial real estate as well. This is because the French property value--particularly in the south of the France, and the IDL Parisien region--has historically been far less volatile than other markets in Europe, and in the rest of the world. In the world of global investment, French property, because of its consistent demand and steady value, has always been on the top of the list for valuable real estate investments. The most prestigious and reliable investment and real estate information sources consistently note France, next to Germany and the UK in the European real estate market, as a top target country, even distinct in the real estate decline in value that has hurt the rest of Europe (primarily due to a lack of debt financing). Despite the negative impact the financial crisis and its subsequent effects on the European commercial and private property, Paris, specifically, has demonstrated a rise in commercial and private property sales, also due to its historical stability and the face that the city does not rely on financial services companies when it comes to property. French property investments make up the majority of cross-border investments, both in Europe, and involving North American (notably the United States) investments. While other star property investment areas of Europe have recently attracted investors for the resulting decline in property prices that resulted from economic downturn, such as in London, where commercial and private real estate prices have fallen, but where property investors have been opportunistic in taking advantage, since overall property value in such places will not ultimately ever decline, French property is both attractive and unattractive to investors, depending on the amount of risk desired with the investment. French property's reputation for steadiness also means less risk, which, in turn, can mean less return. However, less risk and the lack of volatility also implies that a loss of profit is not likely. Investments in French property are motivated by one of those two factors: the ROI (return on investment) or the stability of the French property market, and both motivating factors are typically mutually exclusive.