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Luxury real estate: Paris remains a favorite with international investors
A market survey released by Barnes Realty International finds that Paris’ luxury real estate remains highly sought after, partly due to the city’s comparatively low prices. According to Barnes Realty International, the French capital “retains a special place in the heart of international investors,” especially when it comes to purchasing luxury real estate. Despite the enduring popularity of London and New York, Paris retains its magnetic draw for property investors, mainly due to its comparatively low prices.
In its study, Barnes finds that properties worth more than 1 million euros have seen their prices drop by 15% over the last 4 years, while properties in the 4 million-plus price bracket have experienced price cuts of up to 25%. While professionals debate whether London is currently experiencing a housing price bubble waiting to pop, Barnes asserts that no such risk exists in Paris, as the “rules characterizing its market are not speculative, nor does the market depend on the stock market or on construction excesses.” The year 2015 has marked the recovery of Paris and France’s property market, with transaction volumes growing by 20%, according to Barnes. Clearer tax and legal structures, low interest rates and reasonable prices have allowed the market’s activity to resume, and 2016 is set to see this positive trend continue, according to professionals. Barnes reports that the recovery has brought about the spectacular return of wealthy buyers — often with budgets comprised between 10 and 20 million euros — from North and South America, China, Singapore, Malaysia and Indonesia, Eastern Europe and the Middle East seeking exceptional properties in the capital or nearby. Barnes identifies the most sought-after luxury properties as “mansions and contemporary houses located in the 6th, 7th, 8th and 16th arrondissements and sold at prices ranging from 8.5 to 15 million euros.” Occasionally the budget of international buyers prospecting in Paris and its region far exceeds these amounts, as is exemplified by the recent sale of the most expensive property in the world in the Parisian suburbs: the Château Louis XIV which sold for 275 million euros. Photo credit: Wikipedia / bNjphoto