French properties outside the capital, Paris, fell by an average of 1.6% in the first quarter of 2011, according to French notaires.

This is a contrast to the cost of flats and apartments which saw an increase of 1.9% over the same period. This is thought to be because house prices were too high for buyers and investors alike.

The market on the whole, appears to be slowing down however, with one third of the country reporting a fall in house prices over the last year, with only 12 areas in the country showing an increase. Unfortunately the notaires failed to identify the 31 areas in France which have seen a decrease, but shopping around will give you a good idea of which ones are best to invest in!

In contrast to the notaires, estate agents reported a rise in house prices outside of Paris, by around 4% over the first quarter which continued into the second quarter, resulting in a rise of around 2.7%.

To understand the full step-by-step process to buying a property in France, collect The Overseas Guides Company’s ‘France Property Buying Guide’