Cap­i­tal re­turn

Living France - - Property News -

The French cap­i­tal is once again on the radar of prop­erty buy­ers, both French and over­seas, who have been hold­ing out for the per­fect buy­ing con­di­tions, ac­cord­ing to the latest Paris Residential Prop­erty Mar­ket re­port by Athena Ad­vi­sors.

Fig­ures re­veal a slight in­crease in prices in Paris of 0.8% over the three months to July 2015 and a year-on-year price re­cov­ery of 0.1% with the av­er­age price per square me­tre ris­ing to €8,368. Trans­ac­tions have also risen re­cently and sum­mer view­ings in Paris are up 42% com­pared to last year.

“Those buy­ing in the last six months have timed their pur­chases al­most to per­fec­tion,” says Ni­cholas Leach of Athena Ad­vi­sors. This year has seen low in­ter­est rates, favourable ex­change rates and soft­en­ing prop­erty prices all of which have at­tracted for­eign in­vestors. Along with this there have been sev­eral po­lit­i­cal de­vel­op­ments that have ben­e­fit­ted over­seas buy­ers: in Fe­bru­ary cap­i­tal gains tax for non-EU res­i­dents was re­duced to 19% and in March so­cial charges on rental in­come and prop­erty sales for non-res­i­dents were ruled illegal by the Euro­pean Court of Jus­tice.

As a re­sult the pro­por­tion of for­eign buy­ers of Parisian prop­erty has risen from 8.2% in 2014 to 9.2% in the first three months of 2015, although this is still con­sid­er­ably less than Lon­don where for­eign buy­ers com­prise 75% of the mar­ket. A study by the No­taires de Paris as­so­ci­a­tion has re­vealed that there has been a de­cline of in­ter­na­tional buy­ers buy­ing a sec­ond home (only 3% of buy­ers in 2014 com­pared to 4% in pre­vi­ous years) with more opt­ing to buy a pri­mary res­i­dence in Paris.

The re­port re­veals that for­eign buy­ers tend to fo­cus on the most cen­tral lo­ca­tions in Paris caus­ing a spike in prices in cer­tain ar­rondisse­ments, in­clud­ing the 11th ar­rondisse­ment, on the right bank of the Seine and home to the Place de la Bastille, which recorded an in­crease of 6.3% in the sec­ond quar­ter of 2015.

Un­like Lon­don, there is a marked dif­fer­ence be­tween prices in cen­tral Paris and the area be­yond the Pé­riphérique (roughly equiv­a­lent to Greater Lon­don) with prices in Île-de-France ris­ing 187% over the last 20 years com­pared to a mas­sive in­crease of 365% in cen­tral Paris. www.athenaad­vi­­

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