Real estate investments in Paris. What should you know before?
General information for investors
Paris continues to draw on a profoundly global collection of sales and leases, thanks to to the city’s elegance, history, rich gastronomic offerings and reputation for intellectualism. The volume of transactions has been reduced since the start of the global financial crisis and shifts in domestic policy. However, the fundamentals remain in place to drive the market and we feel confident that they will continue to maintain price stability among the prime properties in the sought-after locations.
The market demand as a whole is greater than supply, which is why prices are so high. For properties ticking all boxes (classic features, light, no vis a vis) the price range is between 10 000 and 20 000 euros per m2, far more if the property is located at a prestigious address or with a significant Wow Factor, such as a river or landmark view.
Why Is a Parisian Property a Successful Investment
Parisian real estate is a very good investment. For obvious reasons, it is a unique city. In comparison to other cities, the stock of older residential real estate remains premium. Regulations discourage and do not allow new development in the best parts of the city. This is a real underpinning of value for a home in Paris, relative to other global cities. Better still, this real asset can be acquired at prices below other comparable residential markets (such as NYC, London, Hong Kong, Tokyo, etc.) and, based on price trends over the last 40 years, you can count on a sound capital gain. For me, residential real estate in Paris is an enticing place to store money. It is a real asset with inflation security attributes.
Prices of Paris Properties
With more than 10,000 euros per square meter, you’re going to need a big cash outlay, not a lot. Usually, a studio of 30m2 in a good area will comfortably cost EUR 13,000 per m2.
With 390,000 euros, my capital can go much further in other international markets. You can find a “deal” in Paris at 7500 euros per square meter, but you’ll end up in an area where poverty reigns and refugees are sleeping on the streets. EUR 7000 per m2 offers me a view of the Parliament on the central square, a real triple A venue. What would you like to get? What’s a great source of value of the two options?
Can a Foreigner Buy a House in Paris?
Yes – there are currently no restrictions on foreigners buying property in France, but you may find the process a bit more difficult as a foreigner.
If you’re working with a real estate agent, the process is likely to be relatively straightforward. However, if you buy directly from the vendor, you can find that the price is high, up to twice the rate of what would be sold to a French consumer. As such, it’s a smart idea to hire a local friend to help you with the transaction if you can, because they’re sure to get a great rappeur and get a finer offer from the French.
Final Word – Is it a Good Idea to Invest in Real Estate in Paris?
Property tends to invest quickly in Paris: sometimes the property is sold the same day it goes on the market. You may have to act quickly once you find a place you like.
- Do your research in the different arrondissements and know what the price per meter is for that area.
- Make sure you know what you’re after right from the start.
- Remember that making an offer is legally binding.
- Have your finances sorted out (get a French bank account).
- Make a profit!