- Wealthy foreign nationals are scouring the French market for premium properties (FrenchEntrée)
- Paris’ residential real estate sector is most sought-after in world for super-rich (Knight Frank)
- Shortage of supply and strong rental returns pulling buy-to-let investors into Paris (FrenchEntrée)
Specialist French property agents FrenchEntrée have revealed that premium properties and rental homes are currently top of buyers’ shopping lists when it comes to Paris property. A core demographic of wealthy foreign nationals, primarily from the UK and the US, are scouring the market for properties costing from around €700,000 and upward.
“The Paris property market is alive and well, with foreign buyers seeking out well-located homes that really take advantage of all that the city has to offer. As well as properties for personal use, we’re seeing keen interest in buy-to-let homes. With fewer properties available than there is demand for, Paris is an excellent choice for buy-to-let ventures at the moment, with properties in desirable areas commanding healthy rental yields,” commented Fleur Buckley, Property Services Manager of FrenchEntrée.
Paris’ residential real estate sector is the most sought after in the world for the super-rich, according to a recent study by Knight Frank International. The city experienced record growth in the price of its residential properties during 2017, in the face of a shortage of housing stock, but the price rise has done little to deter premium property buyers. Rents in Paris are rising hand in hand with property prices. Rent caps were scrapped by the French courts last year. Since then, the National Association for Consumer and User Protection (CLCV) has observed that more than half of all rents in the capital have increased in the past six months.
Fleur Buckley continued: “This shortage of available homes, combined with rising rents, is fueling buy-to-let investment in Paris. Buyers are particularly seeking out Haussmanian buildings with classic proportions and features – light-filled homes with high ceilings. Properties of this nature usually command between €10,000 and €20,000 per square metre, and 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 fact that demand is outstripping supply is also serving to provide the market with excellent stability, which is another reason that investors are so excited about Paris right now.”
Popular hotspots for foreign buyers’ opulent pied-à-terres and rental apartments are the 6th and 7th Saint Germain des Pres arrondissements, and the 3rd and 4th arrondissement, particularly the upmarket district of Le Marais. Budgets in these areas average between €1 million and €1.5 million, according to the FrenchEntrée team. Once a quaint neighbourhood, Le Marais is regarded as ‘old Paris.’ The ‘quartier’ was developed by the bourgeoisie starting in the 16th century and is now one of the city’s most vibrant areas. With its fine array of galleries, museums and boutiques, it’s popular with art enthusiasts and fashionistas alike.
The most interesting area for buyers considering Le Marais is the Haut-Marais, which is further away from the river and close to the République Métro stop. Current hotspots include north of the Rue Rambuteau, south-east of Republique, the Square du Temple and the Marché des Enfants Rouges, the city’s oldest food market, which is packed with rambling food stalls. The Haut-Marais is now a ‘hip’ district that offers a great rental return to investors. With a wealth of bars and restaurants, bustling nightlife and close proximity to République, it’s a sought-after area for young professionals, meaning that investors have plenty of tenants queuing up to rent their apartments.
Le Marais is largely free of Haussmanian architecture and, with its maze of winding streets, is often described as having a ‘village’ feel. Buyers should budget around €12,500 per square metre as a base point, and possibly higher for well-renovated apartments with a lift in the more popular areas.
Studios are particularly popular and snapped up quickly. In terms of returns, a studio in good condition and rented furnished will fetch €1,500 per calendar month, including agency fees, while a nice but compact one-bed will bring in €2,000 pcm, and a two-bedroom €3,000 pcm.
“With Paris due to host the Olympic Games in 2024, and France remaining the world’s most visited country, it’s fair to say that the Paris property market has excellent long-term potential. It’s many investment opportunities are backed by a world-class lifestyle, superb infrastructure and substantial international business community. This is a city that will remain firmly on the investment map for the duration!” said Fleur Buckley
Perfect Parisian properties on the market:
- Le Marais, Square du Temple: This romantic, decadent property is evocative of Madame de Pompadour’s boudoir. This unique property, in a 17th century building, overlooks the beautiful Square du Temple and is priced at €1,680,000.
- Le Marais, Place des Vosges: Located just off the famous Place des Vosges, the jewel in the crown of the Marais, this beautiful three-bedroom apartment, priced at €1,680,000, is on the first floor of a classic Parisian building with high ceilings, period features and plenty of character.
- Saint Germain des Pres, 6th arrondissement: Found in an exceptional location in the heart of Saint-Germain-des-Prés, this luxury apartment is tucked away on the third floor of a period building dating from 1850. Available for €1,575,000, the apartment includes a distinctive antique fireplace, a balcony and outstanding city views.
- Latin Quarter, 5th arrondissement: This two-bedroom property, in an historic enclave just a few steps from the Seine and Notre Dame cathedral, blends exceptional features with contemporary comfort. It is on sale for €1,157,000.
For further information, contact FrenchEntrée on-line at https://www.frenchentree.com/property-for-sale/.