Alpine property market heads for soft landing

A report recently published by the economics wing of HSBC France points to a 3% drop in French property prices in 2008, following a stable end to this year.

Blaming interest rate rises for denting the gallic 'pouvoir d'achat', the report predicts that the market will escape a nose-dive thanks to government initiatives - such as 0% loans for the less well-off. While next year's lull could be a good time for investors looking to snap up a bargain, those wanting to sit out the slowdown are advised to add value to their property by taking advantage of tax credit incentives - particularly for 'eco-friendly' renovations.