Resicom – Holiday Investment – 04-21 – LB

Paris Real Estate Hits Record High

Paris real estate prices have hit a record high over the past year, according to data from the LPI-Se Loger property barometer.

Average prices for Paris real estate have now hit 9,165 euros per square metre, representing an 8 per cent rise from the same time in 2016.

Some of the more upmarket arrondissements in Paris have reached even higher levels, averaging over 11,000 euros per square metre, with one particular property in the prestigious 4th arrondissement measuring only 3 square metres hitting the market at the astonishing price of 16,600 euros per square metre.

With only 41 square miles accommodating over 2 million people, Paris is now one of the most populous and sought-after cities in the world for French and overseas property investors alike, constantly pushing the value of Paris real estate up.

Just two years ago in 2015, Paris real estate prices were actually falling. However, the property market has recovered strongly over the last two years as overseas property investors in particular flock to the most visited city in the world.

Since Brexit passed in June 2016, the number of British buyers has increased. In 2017 alone, British investors purchased 10 per cent of all Parisian property acquired by foreigners.

The election in May 2017 of President Emmanuel Macron has also helped to boost prices, as Macron is seen by many as pro-business. Mortgage and credit rates have remained steady since the election, creating a favourable environment for French and Parisian real estate.

Holiday rental site Airbnb have announced that they will be limiting the number of days that hosts can rent out their Parisian properties to 120 days per year. This change will put the online company in line with already existing French laws introduced to help with a property shortage in Paris. However, this does not affect those landlords and investors renting property in the traditional way.

Paris real estate values are expected to continue to rise in the lead up to the 2024 summer Olympics due to be held in the city, so British overseas property investors seem to be climbing aboard the high-speed property investment train.

Be the first to comment on "Paris Real Estate Hits Record High"

Leave a comment

Your email address will not be published.