Paris’ prime residential market offers a safe haven as a long-term store of wealth in a time of global uncertainty.
Paris 7th District view from Quai Anatole residences
“To international buyers, Parisian values are attractive by international standards,” says Paul Tostevin, director of Savills World Research about prime property in Paris. The city, indeed, has been enjoying unwavering interest in recent years from the global investors, particularly from China, that reaped sizable rewards with residential prices appreciating faster than in most cities in Europe. In 2019, prices climbed 6.4 per cent as compared to 2018 according to the Savills’ World Cities Prime Residential Index, with overseas investors accounting for 16 per cent of property transactions that year.
While French developers have recently been catering toward buyers from China, the response is likely to change in 2020 as the coronavirus pandemic is triggering lockdowns across the world and affecting global financial markets. Nevertheless, Paris is positioned more advantageously than many other cities to weather the storm, based on the fact that the prime and ultra-prime markets are very narrow and, thus, highly desirable and opportunities for new development are limited due to land scarcity.
Views of the iconic Eiffel Tower from Trocadero Residence
Building for Lasting Legacy
In early 2020, Paris was ranked number one for its real estate projects by PricewaterhouseCoopers, with some investors calling the city “an economic powerhouse”. Despite the recent turn of global events, Paris is still advantageously positioned to benefit from a number of factors that have been driving domestic demand and international appeal.
One factor contributing to Paris’ appeal to property investors is the change instituted by the Macron administration to the tax on capital income to boost the disposable income of top-earning households in France. Another factor is Brexit, with a lot of French citizens working in finance and previously living in London making their way back to France due to the concerns that it will not be as easy to enter and exit the UK. Some banks, like JP Morgan, began moving their employees to Paris, which is a step towards strengthening the financial district of the city.
New Investment Opportunities
A much talked about a recent project that has been lauded by many to set Paris apart from its competition is the Grand Paris, aimed to transform the city into a 21st-century metropolis. The ambitious €26 billion transportation undertaking includes the expansion of the city’s metro system to include four new lines and extension of two existing ones, with all of the new stations presenting new development opportunities.
With Paris as a historical and fully built city, the highly coveted area within the ring road presents a fairly small market to investors. However, with the plan for the new train stations to link outer suburbs to the city, analysts expect new prime developments to spring up and attract high-end buyers.
Lastly, with many international buyers looking to buy turnkey properties in prime areas of Paris, developers have been picking up the cues to accommodate the demand. A noticeable trend of developers purchasing buildings and redeveloping them to high specifications, including putting in the top-notch amenities and bringing up old developments to global standards, has emerged to meet the demands for the coveted prime real estate in the City of Light. And while the coronavirus pandemic has slowed down or delayed many buyers’ purchasing decisions, Paris’ prime residential market and its resilience to volatile global conditions continue to assure that buying into the Paris property is a worthwhile long-term investment.
Trocadero Residence
The eye-catching 250 square metre apartment with exceptional open views to the Eiffel Tower is located on the third floor of an early 20th-century freestone building in a prime district of Paris.
Blending the nostalgia of the turn-of-the-century aesthetics with contemporary facilities and amenities, the apartment includes a rotunda living and reception room, three generously sized bedrooms, and a fully-equipped kitchen with dining facilities. Herringbone parquet flooring and ornate fireplaces paired with intricately carved boiserie and cornices complete the picture-perfect, quintessentially Parisian apartment that is as timeless as its location.
Price: USD 6.8 million
Website: www.christiesrealestate.com
Quai Anatole France Apartment
Located on an upper floor of a stylish freestone building on Quai Anatole France, the 324-sqm apartment offers grand and stylish living within a reach to some of Paris’ most iconic landmarks, like Place de la Concorde, the Tuileries Gardens and the Louvre.
The apartment boasts a grand entrance that opens into a double reception room with a balcony overlooking the Seine river. Its unique offerings include a fully-equipped kitchen with dining facilities, a library family room and two bathrooms with walk-in closets. The apartment comes with a parking space and a cellar, as well as two staff rooms on the seventh floor.
Price: USD 10.5 million
Website: www.christiesrealestate.com