Despite Paris being one of the most sought after cities in the world to live – and renowned as being one of the key real estate and economic centres of the world – prices are currently the lowest they have been for a few years, reports Home Hunts.
Lower real estate prices in Paris
Paris is the most visited city in the world, welcoming around 32 million French and foreign visitors each year. It also has a commercial strength, which contributes around 20% of France’s GDP and is the number one city for size of economy in Europe.
With the country having seen 0.3% growth throughout 2013, bringing the country officially out of recession, high net worth individuals are turning to Paris for prime real estate investment opportunities. The country’s growth, combined with the reduction of the capital gains tax threshold (and a further 25% reduction until 31 August 2014), means that buyers are looking for, and finding, good value for money.
“Real estate opportunities in Paris are there for the taking at the moment, and are producing win-win situations for both the buyer and the seller,” says Tim Swannie, Director of Home Hunts. “We are also starting to receive more enquiries from US entrepreneurs who are attracted to Paris by President Hollande’s recent pledge of an easier French visa process.”
Paris property hotspots
Home Hunts can reveal that the most sought after areas in Paris, in 2013, were the 8th, 16th and 17th arrondissements.
The 8th and 17th
The 8th and 17th arrondissements are situated on the right bank of the Seine. The 17th is a thriving business area where residential buildings are predominantly Haussmannian in style, and highly sought after.
The neighbourhood of Batignolles, where artist Manet once lived, is one of the most coveted addresses in Paris. Properties, such as this beautiful three-bedroom apartment (HH-6588943), which is located in a grand period building, are in high demand. With a spacious kitchen, lounge and bathroom, this property is competitively priced at €1,345,000.
The 8th is also one of the main business districts in the city, and it is also home to Paris’s most famous avenue, the Champs-Elysées. “Our clients like to be within a walking distance of the Champs Elysées,” says Hervé Lévy, Manager of Home Hunts’ Paris office. “They also like the Eiffel tower area, but 70% of our clients prefer the right bank of the Seine.”
He adds: “They also like the Parc Monceau area and the Faubourg Saint-Honoré – where the President’s official home, the Elysée Palace, can also be found – and the Avenue Hoche area.”
Magnificently styled to the highest standard, this seven-bedroom, 19th century townhouse (HH-6051867) is located in the Saint-Augustin area in the 8th arrondissement. Having been restored by an architect, this luxurious residence is bathed in light and also includes a home cinema and a gym. The property is priced at €8,400,000.
Also on the right bank, the 16th arrondissement is renowned for its excellent schools and affluent residential areas. It is also home to Avenue Foch, one of the most admired streets in Paris, the Roland Garros Stadium and the Trocadéro, one of Paris’s most popular landmarks.
This Bourgeoise Haussmann apartment (HH-7694535) is located on the 5th floor and offers three bedrooms, a terrace and a cellar. Located by Avenue Foch and Avenue de Malakoff, at €2,450,000 it is unlikely to be on the market for long.
Who is buying – and what?
According to Home Hunts, buyers investing in Paris’s real estate are generally of American, Lebanese, Saudi Arabian, English, Kuwaiti and Italian nationalities. Overall, around 15% of enquiries are for properties up to €1m, 70% are interested in properties in the €1m-€5m range, 10% are looking for investments between €5m and €15m, and around 5% are seeking real estate at €15 and above.
In terms of the most popular kinds of properties, Home Hunts can confirm that apartments in the 7th, 8th and 16th arrondissements are creating the most interest, closely followed by three-bedroom penthouse or high-floor apartments, and prime residences offering renovation potential.
Up and coming areas in Paris
Home Hunts’ research shows that Avenue Kléber, a street in the 16th arrondissement, is becoming more and more popular with overseas buyers. Avenue Kléber is an ideal location as it is positioned between the Trocadero and the Arc de Triomphe, has all the boutiques of Avenue Victor Hugo and sits right next to the golden triangle.
“Avenue Kléber is really on the up and we believe prices will catch up with Avenue Georges V, where prices are much higher, in the near future,” says Hervé. “The opening of the Peninsula Hotel in August will only add to the desirability of the street. In fact, I would bet on Avenue Kléber becoming an extension of the golden triangle pretty soon.”
To find out more about real estate investment opportunities in Paris, visit www.home-hunts.com, and to speak with a Home Hunts’ consultant, call the French office on +33 (0)970 44 66 43.