Prestige properties in Paris
A view of the Eiffel Tower, a top-floor apartment with terrace on Place Vendôme, a private mansion in Saint Germain des Prés… Such captions fan desires and spark immediate interest. Comprising a niche market on the property scene, outstanding properties are accompanied by basic characteristics that never change. A highly-prized market sector which is very active and continues to draw a clientele both French and international.
When thinking of “exceptional” properties, one imagines hundreds of square metres and the millions of euros they inevitably cost. Which is not entirely true, nor completely false, as it does not suffice for a Parisian apartment to offer living space of 300 m2 and post a price somewhere between 5 to 10 million euros for it to belong to this particular category. A special kind of beauty ? Unusual character ? A particularly high score for so-called essential criteria ?… Philippe Menager of the Philippe Menager & Nicolas Hug agency specializing in “Immobilier de Collection” enlightens us on the subject : “An exceptional property can involve a view, a terrace or garden but, above all, it must have a soul, a past, an atmosphere, a personality. It is a unique property with something extra, not just a roof over your head, but an art of living. An apartment of 400 m2 on the top floor of an 18th-C. building in the Faubourg Saint-Germain offering a spectacular view of the Seine and the Louvre obviously belongs to this category. But a light and airy studio of 40 m2 in a private mansion with high ceilings, wood panelling, and a view of a Parisian monument is also an exceptional property. In this sector, evaluations are made case by case, based on features that go well beyind the surface area, in contrast to so-called classic apartments”.
While luxury is not necessarily a matter of price, the neighbourhood, or a prime location, is an essential factor for buyers of high-end properties, as emphaisized by Alexis Caquet, director of the Agences Vaneau, specializing in exceptional properties for the past 40 years : “The power of attraction exercised by Paris lies in its historic character, its old stone, with some arrondissements more marked than others. Historic Paris is firstly the 4th, 6th and 7th arrondissements. The Left Bank still draws as much enthusiasm as ever, as it offers properties that are typically Parisian, a high-quality environment and a rich cultural heritage. These neighbourhoods are hardly ever subject to variations and still represent ideal locations for investors. Which is also true for the heart of Paris, Rue Saint Honoré, Place Vendôme, the Palais Royal gardens, Le Marais, L’Ile Saint Louis, the legendary Golden Triangle, not forgetting the 16th arrondissement where one finds very large apartments, superb private mansions and magnificent views. Plus a few nuggets in neighbourhoods which have evolved over the past few years, such as the 9th arrondissement. Exceptional properties in Paris nevertheless remain a niche market, with few examples really capable of laying claim to the label”.
In 2014, the market for high-quality and exceptional properties has seen a real turn-around with buyers now having the upper hand, as described by Richart Tzipine, general director of the Barnes prestige estate agency : “This market segment is designed for an international clientele, appreciative of French culture and keen to acquire a pied-à-terre in Paris. Buyers are from the Middle East, Eastern Europe, China, Brazil... As compared with London and New York, Paris has once again become interesting in terms of prices for a foreign clientele. Though there are many French buyers, the biggest for year-round family homes, which are still one of the last remaining tax niches. Prices have become more rational, the market is less excessive than three years ago, speculation no longer reaches dizzying heights. Owners have also become more reasonable and buyers are aware of the fact. The market has become both healthier and more stable. The crisis led to a 15 to 25 % slide in prices in the prestige sector, thus allowing the market to find a new balance. Today, the golden rule is to set the right price. When this is the case, buyers come running. It still remains to lighten the administrative load which penalizes the economy, and taxes, to improve market flow”.
