Investors in French property are set to see a positive return on their investment, following an announcement that the country's economy is headed for strong growth this year.

Finance minister Thierry Breton told journalists that the French economy is currently performing to expectations.

Mr Breton said that the figures for the second quarter of 2006, which will be released on August 11th, are expected to demonstrate the country's positive growth so far this year.

"The figures we have show we're clearly in the two to 2.5 per cent scale," Mr Breton said.

French property is a traditionally popular option for overseas investors and the sector has seen consistently high levels of activity so far this year.

According to figures from property specialist Assetz, France is continuing to compete well against newly emerging areas such as Bulgaria and Cyprus, with overseas property investors still keen to enter the market.

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    Carol McDonald