Wealthy Chinese are increasingly heading to France to snap up property, mostly in Paris or at historical castles, chateaus and vineyards, real estate experts say.

According to the Paris Chamber of Notaries, Chinese investors have become the second-largest buyers of apartments across the French capital, accounting for about 8.3 percent of sales, behind only Italian buyers, who account for 17.6 percent.

In three areas of the city - Hauts-de-Seine, Seine-Saint-Denis and Val-de-Marne - Chinese are the largest buyers, accounting for 19.9 percent of apartment sales and 16.9 percent of housing sales.

"Given the economic recession in Europe in recent years, we have seen a decline in domestic housing transactions, about 20 to 25 percent depending on which sector of Paris," says Thierry Delesalle, head of statistics for the chamber. "But the trend has gone the opposite way when it comes to foreign buyers."

Data from the chamber show the number of foreign real estate buyers in the Paris region has continued to increase since 2010.

"The two reasons for the trend are that French real estate appears very reassuring to foreigners and that there is easy access to cheap credit," Delesalle says.

Laurent Demeure, president and CEO of the US-based real estate franchise Coldwell Banker France & Monaco LLC, says that while the French property market has seen a downturn, the volume of Chinese buyers has surged.

"Chinese individuals and corporate leaders are buying very large properties for both commercial and residential reasons," he says, adding that Chinese customers have become increasingly sophisticated in the real estate market.

"There is a strong Chinese community living in France and the rest of Europe, and in some areas, such as Hauts-de-Seine, which covers the western inner suburb of Paris, Chinese have become the largest foreign buyers."

France remains the first choice for many first-time buyers in global real estate markets, as the country is a top tourist destination, he says, adding that about 10 percent of purchases in France are by first-time buyers.

Stephane Bertoux, CEO of France Expert Immo Luxe SAS, a real estate broker specialized in Chinese investment in French real estate, says Chinese buyers can be placed in two categories.

One group is looking for a long-term investment. "For example, they will buy an apartment in Paris for about 1 million euros ($1.08 million) as part of their investment portfolio and rent it out furnished", he says. And, as housing prices in Paris are cheaper compared with other metropolises such as London, New York, Hong Kong or Singapore. "In addition, it is also an investment of 'pleasure', the Chinese investors like to have an apartment in Paris."

The other group is more professional, he says, as they invest in real estate expecting a high yield. "They buy castles and chateaus with our company, with the aim of turning them into hotels, tourist attractions or event venues for the Chinese, who are coming to visit France in increasing numbers."

Buying vineyards and leisure resorts is a new trend, Demeure adds. "I think Chinese are fond of wine, so buying French wineries enables them to acquire particular skills and to enjoy the place, and at the same time acquire knowledge to reproduce (the quality) at Chinese vineyards."

Jean-Dominique Hildebrand, international sales director for Pierre & Vacances Property Investment, a division of France's largest tourist resort development company, says the volume of foreign investors working with his company has increased significantly since 2012.

Last year, foreign investors accounted for 29 percent of the company's turnover, and that is forecast to hit 50 percent in 2015 and 2016.

"Chinese investors prefer the Paris region rather than elsewhere, and cottages rather than apartments," he adds.

Bertoux says France welcomes Chinese investors because of their strong commitment to preserve properties in their original state and environment.

"In the 1970s, many Japanese purchased castles in France. But after buying them, they would dismantle the chimney, precious wood and sculptures and send it all back to Japan," he says. "Chinese customers do not do this, so French people know these buyers will preserve and restore the site."

Tang Shuyue contributed to this story.

tuoyannan@chinadaily.com.cn

( China Daily European Weekly 07/24/2015 page7)