The real estate market in Paris is constantly evolving. In 2012 the real estate sales dropped drastically after two years of rapid growth, in which the French capital almost became a “European hub” together with London. The political and economic situation in France rendered the country less desirable to both national and international investors.
In fact, there was a lot of uncertainty tied to both the general elections and president Hollande’s announcement to reform tax on higher income and introduce new taxes on properties.
However, in 2013 clarity of France’s new fiscal regime and the trouble in the Middle East attracted new foreign investors that realized they weren’t impaired by these new property taxes. Subsequently, real estate in Paris was considered an excellent long term investment.
The majority of foreign investors come from emerging countries (Argentina and Brazil make up 5% and 7% of the market), Russia (10-15%) and part from the USA and Europe.
The luxury real estate market on the other hand has a steady growth rate. The properties near the river Seine are rarely on the market, but when they become available they sell at astronomical rates. Amongst the most expensive streets that haven’t suffered from the crisis in any way are:
- “Avenue Montaigne” lined with important monumental buildings and international designer names (€ 20,000-€ 30,000 per square meter)
- “Avenue des Champs-Élysées” composed of mainly prestigious buildings (€12,000 – €15,000 per square meter)
- “Quai Anatole France” and neighboring areas (€22,000-€25,000€ per square meter)
Despite the high cost of properties in Paris, they are inferior to other international cities such as London, New York and Hong Kong.