Thanks Attika, I wasn't aware of your point beneath.

"The development has to remain in the classification of a Residence de Tourisme. The management company has rights under French law to retain their status, no matter what they say in any contract, and can claim compensation (copied from France Voila magazine)."

Do you have any links to where I can read more on this law?

I had thought there was a good chance of being able to live / retire to property IF it was in a development where properties can be bought as leaseback or residential. (One such development was the Provence Country Club - think the last units were sold about 18 months ago.) I saw targetting such developments as striking a balance between being hassle free and having capital appreciation. (If price is higher for buying for residential use (no VAT refund) then presumbably identical neighbouring property would show similar appreciation IF it could be sold without any encumberances.)

Goldberg. Its a while since I looked at french leasebacks, but aren't they properties that are owned freehold with a commerical lease? Certainly agree with resale market being restrictive for capital appreciation and other points raised by Attika above.