Susie Hollands provides an overview of the French capital's property market, which offers excellent potential for investors ....
Paris is hugely popular with buyers of French property for many reasons, not least because there are many investment opportunities due to the capital's excellent infrastructure, which makes it great for buy-to-let, ventures.
The 'City of Light' continues to draw an international buying and renting set, who are attracted by its world-class lifestyle, which features such benefits as Michelin-starred restaurants and chic shops plus an amazing array of art and culture.
Paris is also a huge centre for commerce, with great transport links and one of the busiest airports in the world (Paris Charles de Gaulle), so it boasts a sizeable international business community. Again, rental opportunities are paramount for this portion of the market, which furthers the idea of buying a Parisian property as a buy-to-let investment, one which you can also use as a holiday home.
A STABLE MARKET
Despite global economic problems and domestic policy changes, these fundamentals, which drive Paris's property market, remain in place. Consequently, we feel confident that they'll continue to underpin the price stability of good quality properties in sought-after locations.
On the whole, demand is greater than supply, which is why the price of Parisian property is so stable. For properties that tick all the boxes (classic features, light-filled, etc.), the price per square metre is between €10,000 and €20,000 - far more if it's at a prestigious address or boasts a significant 'wow factor' such as views of the Seine or a major landmark.
The core market for quality Parisian properties are wealthy foreign nationals, primarily from Italy, the US and UK, who have long-been attracted to the city, particularly the Left Bank. They usually have a budget of €1m to €1.5m and invest in pied-à-terres.
Popular areas include the 6th and 7th arrondissements near Saint-Germain-des-Prés, and the 3rd and 4th in Le Marais. Buyers from Brazil, China and India have also been active in the most expensive areas the 6th, 7th and 8th.
In recent years we've seen a rise in overseas buyers investing in Paris for reasons of personal and financial security. Often coming from politically or economically unstable countries, such as the Middle East, Italy or Greece, they tend to possess bigger budgets, usually in excess of €2m.
Fewer available properties means that for buyers who are looking for two-to-three-bedroom apartments in charming historic buildings, there's little choice.
However, a positive outcome of the current conditions is an increased level of collaboration between property agents, who are keen to facilitate movement in the Parisian market.
Article originally published in FrenchEntrée Magazine issue 117.
Susie Hollands is one of the FrenchEntrée Property Serices' real estate partners in Paris.