With a stride in its step, the French capital is coming out of the doldrums. Incentives for property buyers mean that foreign investors can afford a café au lait and croissant from the terrace of their new downtown apartments.
One of the biggest metropolises in Western Europe, Paris has always held an immense amount of appeal on the international luxury real estate scene. While one of London’s main draws has always been its claim as a European capital of finance, Paris has retained its pull as one of the world’s leading tourist destinations, despite being hit by the 2007 financial crisis and the recent terrorist attacks. The City of Light continues its legacy of being a home to some of the world’s best restaurants, architectural landmarks, cultural institutions, fashion, shopping, food and wine and beacons luxury property buyers with its undeniable charm steeped in history and heritage.
“Paris is unique from many other capital cities in that it is not full of high rise buildings and has kept its 19th century cityscape largely intact”, says Roger Willoughby, Partner at Prestige Property Group. “It is a friendly city with a comprehensive public transport system, but if you prefer to walk, there is nothing better than to walk from one Parisian district to another on a sunny afternoon”.
With the price of an average home seeing drops of 2.5% to 3% in 2014 and 2015 respectively, the strong performance of Sterling against the Euro and the Dollar at its 12-year high, the Paris residential property market is alive with opportunities for international buyers. In 2016, Paris, once again, is a buyer’s market with house prices recovering from the lull and overseas clients returning to Paris for residential property investment opportunities.
“Between 2002 and 2012 prices increased almost 200% and demand has continued to push up prices”, says Marie-Hélène Lundgreen, Director, Belles Demeures de France, International Department of Daniel Feau, exclusive affiliate of Christie’s International Real Estate. “French buyers are back and in July we sold 80 homes – around three a day. Low levels of interest rates are motivating buyers to complete purchases, but France’s economic recovery is also having a positive effect on the real estate market”. In a similar tone, Lundgreen’s projections forecast a 2.5% and a 5% return on investment in residential and commercial property markets respectively.
An additional recent incentive for international buyers that is making property investments in Paris all the more lucrative is this year’s EU court ruling that reduced the capital gains tax for non-residents from 34.5% to 19%. Overseas buyers no longer have to pay the additional “social charges” tax of up to 15.5% on the gain, making the tax conditions in Paris all the more favourable.
Demonstrating an appreciation for antiquity and culture, properties in key areas of Paris have retained their value: the Golden Triangle in the 8th Arrondissement with its inimitable historic Haussmanian and Art Deco architecture, the 6th and 7th Arrondissements, Saint Germain des Prés, Invalides and Champ de Mars with Eiffel Tower and 18th century mansions and buildings remained steadily popular with wealthy buyers. “Paris is and will always be a scarcity market, as they do not build anymore in the centre of Paris”, says Lundgreen. “Those with an appreciation for antiquity have the opportunity to purchase a home with striking architecture steeped in history”.
As for new opportunities for savvy investors, lucrative possibilities are emerging all around Paris this year. There are new trendy areas budding in the centre of Paris, with the 1st, 2nd, 9th, 10th, 11th, 12th and 18th arrondissements arising as the prime spots of interest that can offer better value. Concludes Lundgeen, “These areas are a bit cheaper but still boast boutique cafes and shops popular with younger people”.
On the market
Ecole-Militaire, Christie’s International Real Estate
Located on the seventh floor of a historic 1914 building, with close-up views of the Eiffel Tower, the 130 square metre apartment is a true gem in Paris’ desirable 7th arrondissement, situated close to several government ministries and headquarters. This top floor apartment boasts sky-high, six metre ceilings and a tilted skylight, offering a truly unique view of the iconic Eiffel Tower. The spacious apartment also includes three bedrooms with en-suite bathrooms, a master suite, a mezzanine study, fitted dressing rooms and a spacious kitchen with dining facilities.
Price: EUR 3,690,000 (approx. USD 4.15 million) available on christiesrealestate.com
Place de L’etoile, 16TH Arrondissement, Paris, France
On the top floor of a beautiful building of late 19th century (Haussmann), this spacious apartment spans 2,529 sq. ft. with a beautiful view of the Arc de Triomphe and the avenue Foch. The entrance-way features a large reception room and study facing south with views of Place de l’Etoile.
This three-bedroom home includes a master suite with en-suite bathroom and includes a spacious dressing room and two further en-suite bedrooms. The kitchen opens up onto the dining room and guest toilets. A service room is connected to the flat. Parking can be available in the courtyard of the building.
Price On Application, available on www.greff-international.com / www.greff-immobilier.com / www.greff-eurasie.com
Text by Olha Romaniuk
This article was first published in Palace Magazine