This article is taken from assetz.co.uk

For many the dream is to pay off the mortgage, put aside some money, and eventually get that perfect holiday home in the sun. Unfortunately for many, a dream is as far as they ever get. However, with house prices showing sustained signs of stability in recent years and more people completing mortgage payments earlier, Brits are finding the goal of living at home abroad more attainable than ever before.

According to recent figures Europe is seeing a surge in people investing in second homes and multiple properties, as homeowners look to take advantage of low property prices at home and abroad. Overall, the number of overnight stays during domestic holidays in holiday homes rose by 24 per cent in the last quarter, indicative of a burgeoning trend. With a growing number of property investors seeking opportunities to expand their portfolios abroad, France has emerged as 'the next big thing' in property investment, attracting new buyers with increasing frequency, the result of a combination of relatively low prices and appealing locations.

For Brits, the appeal of France as a holiday home destination is two-fold: first, that it is nearby, and second, cheaper than many regions in the UK. Properties on the outskirts of Paris are notably cheaper than their equivalent properties in Greater London, and with the journey between France and the UK consisting of only a train ride, accessibility is not much of an issue. Furthermore, the popularity of low-cost air travel is making an impact, with prices for properties near easyJet and Ryanair routes having risen by an average of 22 per cent between 2000 and 2002. Other potential holiday home destinations such as Greece, Italy and Spain, though popular in continental Europe, may prove too far afield for UK househunters.

Typically, second homes are bought for use as holiday homes that can be rented out in the mean time. However, investment is becoming an increasingly significant factor due to the fact that additional properties tie up a considerable amount of household assets. For this reason, would-be investors would be pleased to hear that prices in the Cote d'Azur and Languedoc are reportedly rising between ten and 15 per cent per year, while Paris and the Alps continue to enjoy a strong property market. In addition to the holiday home market, France is fast becoming a popular target for more commercial investments. US education retirement system TIAA-CREF has bought €493 million in French real estate, taking France to the forefront of its European portfolio. On this note many businesses, particularly those operating outside of Europe, are seeking to base their European operations in either France or the UK or a combination of the two.

A key factor in all of this is that France has a reasonably high proportion of rental property, attracting local as well as foreign investors. High demand could mean that the best time to invest in a French getaway may have already passed, but the second homes market looks to remain strong for now.