For over a year now, the capital has been subject to a rent-control regime that affects both furnished and unfurnished rentals. With a ‘reference rate’ used as the basis on which rent is fixed, everything rides on the number of rooms in the property being rented, the building’s address, and its year of construction. Continue reading Furnished rentals: how do you calculate rent in Paris?
Real estate transactions always come with associated fees. Some payable by the vendor, others by the purchaser, some are split between the two. Here’s a reminder of the rules. Continue reading Real estate deals: who pays what?
The particularly high level of the London and Paris real estate markets makes them unique in Europe.
In the most sought after districts in Paris – such as here in Saint-Sulpice, in the 6th arrondissement – and in London – Mayfair above – prices can reach from 12,000 to 15,000 euros per square meter, leaving their regional neighbours far behind. Continue reading Paris-London: real estate prices come closer
The luxury real estate market is on good form throughout France, as well as in Paris. Less properties are for sale and prices are once again on the rise.
Brexit, industrial action, and terrorist attacks notwithstanding, the luxury real estate market is buoyant throughout France, notably in Paris: such is the conclusion recently drawn by the industry’s leading lights.
*Demand outstrips supply
The almost permanent fall in interest rates and the relative stability of the Paris market have, for a number of months now, boosted demand for luxury real estate.
More than foreign purchasers, it is the French that are on the move. For the most part, they are buying their principal residence. As always, non-resident buyers (many are Europeans) cannot get enough of pied-à-terre properties and investments in Haussmannian builds.
The result of this uptick in the market? The time it takes for a property to sell is getting shorter and shorter. At Sotheby’s International Realty, the average sale time has reduced by half in just a year. And rare, exceptional properties with high price tags can be snapped up in just two weeks.
In the same time period, the backlog of properties available for purchase has disappeared like snow melting in the sun. According to Féau, at the end of this September the value of property on the market was less than €3 billion, compared to €5.3 billion in February 2014.
This new imbalance between offer and demand has begun to bump up prices, notably in the capital’s more expensive residential neighbourhoods. This trend is affecting family-size apartments (5 rooms, 120m2) as well as the ultra-luxe segment of the market.
*The return of record-beating prices
The market’s verve is confirmed by the latest figures issued by the Chambre des Notaires Paris Ile-de-France which show a rise in sales around the €20,000/m2 mark, notably in the 6th arrondissement. And that’s not all. In the second quarter 2016, two record sales punched through the €30,000/m2 mark.
In terms of the capital’s best-selling neighbourhoods, the rankings remain unchanged. The four most sought after quartiers (average price in Q2 2016, movement over the past year) are:
– Saint-Germain-des-Près (6th): €14,460/m2 (no significant change)
– Saint-Thomas D’Aquin (7th): €13,330/m2 (+8.1%)
– Les Invalides (7th): €12,520/m2 (+12.7%)
– Les Champs Elysées (8th): 12,290 €/m2 (-12.2%)
(Source: average price supplied by notaires de Paris-Ile-de-France)
Work in London or Paris? People who work in these two capitals assess the advantages and disadvantages of the city in which they work. There are similarities and differences. These results are selected from the Paris Workplace opinion survey. Continue reading Work places: the Paris-London showdown
The recovery of Paris’ luxury property market is confirmed with increased activity of the French over foreigners across all luxury niches. The recovery of the luxury property market is confirmed in 2016. The latest figures published in June by the Barnes, Emile Garcin, and Daniel Féau real estate networks confirm this movement which began in 2014. Continue reading Luxury property: the upturn is confirmed
There was no need to fear that Brexit would create tensions on market rates. Rates have not taken off and property loan interest rates are still historically low. The recent victory of Brexit in the UK has not upset the interest rate market and indirectly French property loan interest rates. The trend remains unshakeably downwards. Continue reading The Brexit effect on … property loan rates
4Keeping a property empty for several years does not always turn out to be the best decision. Deterioration and tax can make it expensive for the owner.
Some owners decide to leave their apartments empty rather than renting them. Staying out of the rental market is an extreme strategy. No problems with the complexities of rent regulation in Paris and no constraints caused by the new requirements under the ALUR legislation (standard lease, diagnosis). And of course, no hassle related to managing the tenancy (vacant property, rent reviews, repairs, unpaid rent). Continue reading Vacant property: what about putting it on the rental market?
Paris is considering increasing tax on empty homes. The measure could include the 90,000 second homes in the capital. The Council of Paris adopted the principle of a tax increase on empty housing and second homes in the capital in June. This decision still has to be submitted to the French Parliament under the Amending Finance Law which authorises towns and cities in tension zones to levy increased taxes again. Continue reading Paris plans to increase tax on second homes in the capital
Since the beginning of 2016, mortgage interest rates have continued to fall, reaching record lows. A real boon for purchasers. And they just keep on falling! Since the beginning of the year, mortgage interest rates haven’t stopped shrinking. Month after month they hit historic record lows. Something not seen since the end of World War II! Continue reading Mortgage interest rates at historic low