Tuesday, May 1, 2012

French Polynesia Real Estate Market Insights

French Polynesia is a desired destination for most Europeans especially for those in France and other countries. It has really beautiful beaches, waterfront luxury villas and bungalows that appeal to all. However the cost of living is very high and the price for the French Polynesia real estate for sale is also quite exorbitant. In 2004, French Polynesia was also granted autonomy, however it stays within the political framework of the France. This move was carried out to protect the local people and the employment and to save the local economy from the European immigrants that wish to stay here and work.

According to the latest Autonomy law that has been enacted, it also affects the right of foreigners to buy the real estate in French Polynesia. The law isn't very clear on the residency of the foreigners and this could be between 5 years to 10 years of stay by the foreigners. Even prior to the Autonomy law, it was difficult for foreigners to purchase the real estate in French Polynesia. All investments whether they are in real estate, industry or any another aspect in the French Polynesian economy needs the approval and the authorization of the government.

Further more French Polynesians are extremely sentimental about their land holdings and there are many owners for a single piece of land. Sometimes it can become quite difficult to seek approvals from all the co-owners as all must give their permission to sell, before the real estate in French Polynesia can be purchased. Currently a beachfront villa with its own private beach, which is approximately 7000 square meters, will cost US,000,000.

The most popular destinations for purchasing the real estate in French Polynesia are the islands of Tahiti, Moorea, Bora Bora, Tahaa and Raiatea along with several undeveloped and smaller islands. French Polynesia is made up of 118 volcanic atolls and coral islands and is known for their spectacular views and beaches.

The transaction costs for the purchase of the French Polynesia real estate for sale are approximately 25%. The French Polynesia rentals are quite low and a 200 square meter plot or villa may be rented out at US00. The yields are also quite low and hover around 4% of the French Polynesia rentals. Each of this investment will require authorizations from the Government of French Polynesia. Approvals for other investments that don't create jobs or employment for the locals can be extremely difficult to get.

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