From "Financial Times" and "Times" of London by Assetz Management - 31st October 2007.

The last few days have seen plenty of gloomy headlines about the UK and US property markets, with predictions of crashes, rising repossessions and falling mortgage lending. In contrast, it has been argued, the prospects seem particularly healthy for France.

Such an argument has been taken up by VEF and other EU studies, which reports that our nearest continental neighbour is enjoying a rise in prices and popularity just as the UK slumps. It notes that the story it has picked up in the UK press - from the Times - admits that things may not be so bad in the UK and strongly suggests the press is trying to "sensationalise" the idea of a crash.

Even so, VEF notes, the prospects for France do look good and the number of foreign property investors are growing. It quotes the Financial Times saying that the British, Dutch and Germans have been buying up holiday homes in France at a "remarkable rate", with an estimated total of 500,000 Britons owning properties in the country.

The article adds that in the light of predictions for a decline in UK & US prices (however reliable or otherwise these may be), the prospect of a further increase in demand for French properties "does not seem unreasonable".

Even so, states another recent Financial Times revelation - that worldwide prices had fallen but in France they had risen - does suggest that the country offers a sounder investment than some locations. Part of that may be down to some new markets turning out to be less profitable or sustainable than suspected, but there are some excellent examples listed by the Financial Times in their report especially the city regioans of Paris; Toulouse; Bordeaux; Marseille and Lyon.

But there are other factors boosting France too. While Ferries and the Channel Tunnel offer two options for travel from Britain particularly between southern England and northern France, the number of low-cost flights are also increasing, raising the prospect of increased tourism and thus investment opportunities. France won't need Britain, USA, or anywhere else to slump in order to go on thriving.