Paris real estate has always been regarded as one of the most prestigious residential markets in the world: architectural beauty, exceptional and renowned monuments, hundreds of museums and art galleries, an endless array of luxury boutiques, extensive choice of Michelin-starred restaurants, and that unique French art of living.
Paris has always enjoyed an unmatched allure, with its rich history and heritage, alongside an abundance of magnificent homes that retain a global appeal. In addition, excellent international schools, a solid infrastructure and outstanding transportation network make Paris truly a world-class city.
Regardless of market cyclicality, Paris real estate remains a profitable investment with an upward long-term trend. According to a study published by Paris and Île-de-France notaires, the officials who handle property transactions, property prices have more than tripled over 30 years.
Paris is one of the world’s primary business centres and tourist destinations, and demand for residential property is healthy. Several factors have ensured that the Paris property market has remained buoyant over the past couple of decades, despite crises and cycles.
First of all, there is a shortage of new construction. Secondly, the city centre cannot expand beyond the Périphérique ring road. Also, real estate buyers prefer properties in period buildings, for which demand outstrips supply.
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 anywhere – prices are currently more attractive than they have been for a number of years.
FNAIM, the National Federation of Real Estate Agents, says average prices fell slightly – by around 0.9% – last year. This figure conceals the wide variations within – and between –arrondissements (city districts). According to FNAIM’s figures, prices in the 4th, 5th and 6th arrondissements, amongst the highest in Paris, have resisted the push to head downwards. In the 15th, 16th and 17th arrondissements, prices have seen bigger corrections from their previous high levels.
Knight Frank, a leading global real estate consultancy, expects the French capital to see moderate price growth this year, and tips the 16th arrondissement as one of their ten worldwide markets to watch in 2015 because it is “a safe but buzzing area” where developments are small in scale and competition is fierce.
Given the fall in prices, and the fact interest rates are at historically low levels, plus the weakening of the Euro against other major currencies such as the USD and British Pound, prices are expected to pick up further in 2016, adding further to the attraction of Paris property.
The Paris housing market continues to attract foreign investors. Buyers investing in Paris properties are a mix of nationalities from around the world, including Europeans, Americans, Russians, Middle Easterners, South Americans, Algerians and Chinese. European investors include Italians, Portuguese, British, Germans and Spaniards.
Residential real estate has traditionally been considered a good investment, and buyers continue to see Paris real estate as a mid- and long-term winner.