Steady demand for second residences in Paris
Paris, the City of Light, has retained all its potential for attracting the interest of both French and foreign investors. Its beautiful architecture, its historic character, its refinement and, above all, its prices that are rather reasonable compared to other cities around the world, all place Paris in a very good position on the market for second residences.
A cosmopolitan city with an international aura just like London and New York, Paris naturally draws a high percentage of foreigners among its buyers of second homes, attracted by its art of living, its beauty and elegance. This market is, however, shared with French clients, as explained by Hugues de La Morandière of the Agence Varenne : “The market for second residences is of interest to foreigners just as much as French buyers, either resident or non-resident. The foreign clientele is mainly comprised of Europeans, buyers from the Near and Far East, America and South America, though the trend is becoming increasingly cosmopolitan. Some of the French buyers are non-residents wanting to have a home base in Paris, for themselves or their children following their studies here. Others share their activities between Paris and the provinces. Criteria for a pied-à-terre depend primarily on the use to be made of the property : they will not be the same for a practical 1-bedroomed apartment or a prestigious pied-à-terre used for socializing and therefore more esthetically pleasing. Demand can also thus range from 50 to 300 m² depending on the property’s purpose and the buyer’s nationality”.
The nationality of the client in fact determines the type of pied-à-terre in question, as confirmed by Alexandre Moisset of the Mobilis Group : “For a French buyer and, more generally, European clients, requests for a pied-à-terre will imply an apartment of 50 to 120 m2. Buyers from Asia, the Middle East and South Africa are looking for apartments of 150 m2 or more. The property’s location then comes into consideration, depending on the client’s nationality. Middle Eastern buyers will only target the Golden Triangle, the 8th arrondissement and the northern part of the 16th. South Americans straddle the 17th arrondissement, the Golden Triangle, and the northern part of the 16th. Americans and Europeans usually opt for the 6th and 7th arrondissements and part of the Marais, while Asians prefer the Right Bank. Depending on budgets, other criteria will come into play such as a view, a prestigious address, appointments, though these items are rather random. The market for second residences is buoyant in Paris. French clients are looking to invest, despite a disappointing social context. Faced by the volatility of financial markets, they see bricks and mortar as a serene investment, especially in Paris. In the case of foreign clients, there is, on the one hand, the aspect of personal enjoyment, treating oneself to a snippet of a postcard, rather like a trophy, and on the other, carefully reasoned investments, especially among the Chinese, who acclaim Paris as a “world city” and acquire a pied-à-terre at a more advantageous price than they would in Singapore or New York, and for which they can easily imagine both rental and re-sale”.
While the market for pieds-à-terre is pretty evenly balanced between French and foreign investors, it differs significantly in terms of budgets. According to Nathalie Garcin, CEO of the Emile Garcin group : “To acquire a base in Paris, French buyers usually dispose of a budget somewhere between 500,000 and 2 million euros. For properties priced from 2 to 5 million euros or more, the majority of the clients are foreign. From Switzerland, Belgium, China and the Middle East, they are actively looking for this kind of luxury property : and since January 2016, wealthy American clients have again been investing in the French capital. We recently sold a house of 150 m2 in Saint Germain des Prés to an American family, priced at 3,500,000 €”. Beyond the appeal of certain arrondissements and flagship neighbourhoods in Paris, such as the Golden Triangle and Saint Germain des Prés, Nathalie Garcin points to the emergence of one arrondissement on the Right Bank : “Over the past year, the 9th arrondissement has seen steady demand from buyers looking for a pied-à-terre. We have completed more and more sales in this lively, central neighbourhood of Paris, which is attracting both French and foreign buyers. We recently sold a lovely 2-bedroomed apartment of 80 m2 beneath the eaves, in this same arrondissement, priced at 700,000 €”.
