While purchase prices make headlines, the real story lies in what happens after you get the keys

In a world where property ownership increasingly feels like a luxury reserved for the ultra-wealthy, Paris presents a compelling contradiction. Despite widespread concerns about European real estate costs, the French capital remains one of the most affordable major cities for ongoing property ownership costs worldwide.

Our analysis shows that Paris property owners typically pay 1% in total annual carrying costs — a figure that pales in comparison to other major cities in the US and Europe.

Why Does Everyone Focus on the Wrong Numbers?

The conversation around Paris real estate typically centers on purchase prices that can easily surpass €10,000 to €20,000 per square meter in desirable neighborhoods and around closing costs of 7.5% (including notaire fees and taxes). However, this focus obscures a more nuanced financial analysis of Parisian property ownership.

Take, for example, an elegant 52-square-meter, two-bedroom apartment on Rue du Champ de Mars in the 7th Arrondissement, just steps from the Eiffel Tower and the vibrant Rue Cler. This property combines historic charm with modern comfort, featuring an original fireplace, abundant natural light from southern-facing windows, and a thoughtful renovation that maximizes space. Listed at €755,000 (before Agency fees) the annual carrying costs break down as follows:

• Utilities and Internet/Phone/TV: €250 monthly (€3,000 annually)
• Building fees: €177 monthly (€2,124 annually)
• Property taxes: €1,200 annually*
• Homeowner insurance: €500 annually

*Note that second home owners also pay the Taxe d’habitation that is approximately 1.5 times the annual property tax.

Total annual carrying costs: €6,824 — less than 0.9% of the property’s value.  “International buyers are often surprised to discover that their ongoing costs in Paris are much lower than what they’d pay for a comparable property in most major U.S. cities,” explains Miranda Junowicz, founder of Paris Property Group. 

A Deeper Look at the Numbers

The French approach to property taxation fundamentally differs from systems in countries like the United States, where property taxes can consume significant portions of homeowners’ budgets. French property owners benefit from a national framework that emphasizes affordability over revenue generation, creating one of the world’s most owner-friendly cost structures. 

While yearly taxes are not based on a property’s value, Paris property owners typically pay only 0.1% to 0.3% of their property’s value annually in taxes. Property taxes on a Paris apartment are on average 10 to 20% of those of a comparable Manhattan condominium — a huge savings, even before factoring in significantly lower insurance, building fees, and utility costs.

Building fees typically ranging from €100 to €300 — cover building insurance, water, trash collection, common area maintenance, and sometimes include a live-in concierge. Condo fees in Manhattan often range from $1000 to $3000 a month.

Utility costs in Paris also reflect the city’s commitment to efficiency and sustainability. Monthly internet, phone, and television packages typically cost around €40, while building-wide energy systems often provide heating and hot water at rates significantly below those in comparable international cities.

What Does This Mean for Today’s International Buyers?

For international investors evaluating Paris real estate, the carrying cost advantage can be substantial. “We encourage clients to think beyond the purchase price and consider the total cost of ownership over five to ten years,” explains Jennifer Jomard, a Paris Property Group agent. “When you factor in the ongoing savings, many find that Paris ownership delivers exceptional value.” For international buyers the low carrying costs tell a compelling story that transcends the initial sticker shock.

Contact Paris Property Group to learn more about buying or selling property in Paris or to be introduced to a trusted mortgage professional.