For the second year running, Paris is at the top of the European ratings, beating London in the hearts of real estate investors (“Emerging Trends in Real Estate Europe 2006”, published by the Urban Land Institute and Price Waterhouse Coopers). Paris also remains the most “lucrative” real estate market according to a survey of 250 of the industry’s leading authorities. Paris proves to be ahead of London, Helsinki, Madrid and Barcelona. (http://www.europe-re.com).
June 2007
Following the election results, the heat is expected to rise in the French real estate market
January 2007
Faced with the weakening dollar, more and more foreign buyers are investing with Euro loans
Real estate prices in Paris have increased by approximately 115% since 1998, with an increase of 10% for 2005 alone! (www.fnaim.fr). The market looks as if it is finally slowing down, although property prices in Paris have increased by between 3-10% between 2005-2006, depending on the areas. Experts don’t expect prices to drop on the Parisian market, despite the increase in interest rates (which would have to rise by at least 7% to have any real influence on prices) and this for various reasons: high demand for lodgings, sociological (divorces and single-parent families), demographic (increase in life expectancy), economic (democratization of access to property and capitalization caused by the problem of retirements) and geographical (no land to build on).
When you compare Paris to either New York or London, it wins hands down every time in terms of its architecture, history, culture, cuisine…and its property…because it’s a fact that property for sale in Paris is cheaper, better value and more affordable than similarly located or facilitated property in either London or New York.
Furthermore, property in Paris is in high demand from a broad array of potential tenants, making it an instant income-producing asset when bought in the ‘right’ arrondissement in this beautiful and timelessly attractive city.
According to the PropertyInvestor.net over 60% of property in Paris is already owned by foreign investors and purchasers. They report that 2004 saw a 44% increase in the amount of money invested into property for sale in Paris as well, and that this trend does not seem to be abating so far in 2006. The property sector in Greater Paris alone attracted around 17.5 billion euros in investment last year and the appeal and allure of both commercial and residential property in Paris remains constant, making the location extremely interesting from an investor’s point of view.
On the one hand Paris, as the capital of France, is also the capital of the French economy. It is from Paris that the greatest amount of business is transacted, resulting in a huge demand for commercial space for lease, let, sale or rent. On the other hand there is also great demand in Paris for residential accommodation from the locally employed, travelling business persons, students, tourists and of course, families- both Parisian and expatriate, making it the perfect environment for anyone looking for a broad property investment opportunity.
All of these factors combined together make Paris one of the most exciting locations for property investment. It is on a par with the likes of London and New York in terms of appeal – but property in Paris is actually far more affordable than property in many other world cities.
