Demand for buying property in Paris grows as prices keep rising
Property in Paris continues to climb in price, providing good investment opportunities for buyers, says Home Hunts
Over the last 12 months, Paris property has risen by 10%, and 16% in the last two years. Offering stability and excellent investment prospects for international buyers looking for a foot in Europe, the increase shows no signs of slowing down. Home Hunts’ Director Tim Swannie says that the Paris market is the busiest they’ve ever seen it.
“There is no doubt that the market will continue to increase this year – the higher end of the market is particularly crazy,” says Tim. “Buyers need to be prepared to move quickly once they find a property they like because good properties sell within days.”
Demand is outstripping supply with Meilleurs Agents stating that number of buyers in March 2020 so far is 23% more than the number of properties for sale.
Where did prices rise the most?
According to the Chambre de Notaires in Paris, over the last year, the arrondissements with the greatest price increases are the 9th (8.2%), 11th (7.5%), 12th (7.3%), 5th (9%) and 20th (8.7%).
Within each of these arrondissements, the neighbourhoods that have increased the most in value over five years are: Rochechouart in the 9th (28%), Folie-Méricourt in the 11th (39.9%), Quinze-Vingts in the 12th (30%), Sorbonne in the 5th (31%) and Belleville in the 20th (33.8%).
“Paris has always drawn a diverse range of buyers, it is one of the world’s most beautiful cities, rich in culture, famous sights, incredible food and world-class shopping, the city continues to go from strength to strength on that front,” says Tim.
“Some neighbourhoods are extremely expensive to buy property, but there are a diverse range of developing neighbourhoods in all areas of the city, Paris really offers something for everyone.”
Brexit fuelling the Paris property market
Although the Brexit referendum and the build up to the transition period had caused concern over the stability of the market, Home Hunts says that if anything it has fuelled the market in Paris. Buyers from the Middle East, China, Brazil and the USA are now tending to focus on Paris as the location for their European property base whereas before London may have been at the top of their list.
“Paris has always been popular with international buyers, of course, but the fact that London is no longer in the EU is definitely forcing a lot of international buyers, particularly those who do business with Europe, to look at alternatives,” says Tim. “On top of that, there are the Brits who are keen to buy their French foothold before the end of the transition period, we are finding that a lot in all parts of France at present.”
Tim says that the average price for luxury property in Paris is just over €15,000m2.
“That is around two-thirds lower than Hong Kong, more than a one-third lower than New York and nearly 20% lower than London, but prices are on the rise,” he explains.
“With the historically low interest rates and the attractive tax changes brought about by Macron and his team,” he continues, “it is easy to see why demand outstrips supply in this super-chic destination.”
If you are looking to buy a property in Paris, visit www.home-hunts.com to view homes for sale in Home Hunts’ online portfolio. But to speak to a consultant about your specific needs, call+33 (0)970 44 66 43.