CAP­I­TAL AP­PRE­CI­A­TION

Living France - - The Essentials -

Prop­erty prices in the French cap­i­tal have reached a new high ac­cord­ing to the lat­est in­dus­try fig­ures. The av­er­age price of a prop­erty in Paris reached 8,942/m2 in the first half of this year, rep­re­sent­ing an in­crease of 7.7% in just one year and more than triple the av­er­age price recorded in 2000.

The lat­est re­search from Sav­ills sug­gests that the elec­tion of Pres­i­dent Macron, his­tor­i­cally low in­ter­est rates and grow­ing con­sumer con­fi­dence are all set to have a pos­i­tive im­pact on the prime res­i­den­tial prop­erty mar­ket in Paris.

Prime mar­ket prices rose by 4.3% in 2016 ac­cord­ing to the re­port, while over­seas buy­ers ac­counted for 9% of prime prop­erty sales. The per­cent­age of Amer­i­can buy­ers in the city dropped from 21% in 2015 to 16% in 2016, while Euro­peans were the largest sin­gle for­eign buyer group at 39%, led by the Bri­tish, Swiss and Bel­gians.

Paris is also the big­gest sin­gle mar­ket for short­term rental web­site Airbnb, with some 65,000 homes listed for rent in the French cap­i­tal. A re­cent de­ci­sion by Paris city coun­cil means that from De­cem­ber, it will now be manda­tory for those rent­ing their apart­ments on sites such as Airbnb to reg­is­ter their prop­erty with the town hall. In re­sponse, Airbnb sug­gested cre­at­ing au­to­mated lim­its to en­sure its hosts in Paris and other French cities do not rent their prop­erty out for more than the 120 days al­lowed by law for a main res­i­dence in France, but it seems un­likely that this al­ter­na­tive pro­posal will be ac­cepted by of­fi­cials. This is a fur­ther at­tempt by Paris au­thor­i­ties to crack down on those who are il­le­gally rent­ing out their homes, and has been wel­comed by the ho­tel in­dus­try.

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