7 Reasons why Paris real estate is a great investment
Posted on September 7, 2012 by Kathryn Brown
Over the last months, the French media has been reveling in gloomy news about the French economy and more specifically about expected trends in the real estate market. But their predictions of a downturn ignore some fundamental facts. It’s a great time to invest in Paris real estate and here’s why:
- The election of Hollande has created some uncertainty in the market that has checked the marked upward climb in prices over the last 3 years. Expect good negotiating power for properties priced at the top of the market.
- The euro is weak at the moment, making property in Paris relatively less expensive for buyers from non-euro currencies.
- Bricks and mortar properties in “old Europe” cities are an extremely safe investment long term – limited in supply and akin to investing in gold. It’s an asset that seldom devalues and Paris is consistently named one of the best real estate markets in the world for investment.
- Paris real estate is also offers consistent growth, yielding an average long term price gain of 10% per year over the past 40 years.
- Paris is the number one tourist destination in the world. That means that, if you want to buy a pied-a-terre in Paris and rent it out to offset your running costs, the right apartment with the right rental management can earn a net return on investment of up to 8% a year.
- English is becoming more prevalent in Paris, making the city easier to navigate for non-French speakers and thus encouraging more potential buyers from around the world.
- Large institutional investors continue to scoop up Paris property, signaling their belief that the market remains vibrant and that any price lull may be short-lived.