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Paris real estate update: Americans are back in Paris, and they are buying
American buyers have been pouring into the Parisian market since last summer. Low borrowing rates, the rising value of the US Dollar and the ever rising prices in the US, makes French property extremely advantageous for American buyers.
According to a recent Coldwell Banker network survey of luxury real estate trends, which surveyed 2,000 affluent US individuals, 92% of them are now considering an international real estate purchase given the strength of the dollar, the tense and uncertain political climate in the United States and the rising cost of living.
The reasons for this renewed enthusiasm for Haussman buildings are primarily financial. Americans can borrow in France around 2% at a fixed rate instead of 8% in the United States. In addition, the euro-dollar parity is extremely favorable to them.
This ultra-attractive context has caused the rush to Paris, of a new category of buyers who prioritize the financial aspect above all, and sometimes do not speak French. But, well advised by their lawyers, “they know the value of the Parisian high end”. Others are Francophiles and also choose Paris for its beauty, restaurants and cultural life.
Most of these buyers come from New York, a few from California or Colorado. Pascale Constans, from Sotheby’s Parisian Properties, knows them well: “Their profiles are very diverse, with many financiers between 35 and 45 years old. But there are also businessmen aged 50 and over.” Manuela Baron, at Emile Garcin adds, “As well as often very young startupers who have sold their company for a very high price.”
What type of properties are they looking for?
As for the characteristics of the properties they are looking for, “almost all of them want an apartment that has already been renovated, air-conditioned, with a lift and a bathroom and toilet adjoining each of the bedrooms. “They are sometimes confused by the degraded state of certain Parisian condominiums”, notes Sophie Lerner, at Engel and Völkers. They are, on the other hand, “very pleasantly surprised by the level of building homeowner association fees, which are much lower than in New York”, underlines Bruno Vallery-Radot, at Daniel Féau Saint-Germain-des-Prés. The wealthiest are looking for large apartments or mansions with character.
Where do they want to buy?
Almost all prefer the left bank: the Holy Grail for Americans is to have a pied-à-terre in Saint-Germain-des-Prés, their favorite neighborhood. And they are ready to pay the price. “On Rue de l’Université, one of them acquired a 160-m2 for 5 million euros,” observes Nicolas Hug. Another offer for a 300 m2 (which needed renovation) on the Place Saint-Germain-des-Prés for 30,000€/m2. “Americans are also looking for views of the Eiffel Tower from the Trocadéro district,” notes Léa Mitrani, from the Marc Foujols agency.
At Paris Property Group, we do still see a lot of interest in the 6th and 7th arrondissements of Paris. but we also see more interest now in the areas that still feel more authentic and less touristy, and which may offer more upside price growth over time. Every area of Paris has its own special feel. Whatever your preference, Paris Property Group can help you find your perfect place in Paris.
Original source: Nouvel Obs