Buying French Property in Paris

Summary: Examining the short term prospects for the French property market in Paris for real estate buyers and investors

The Parisian property market is more than holding its own in the face of newer, developing markets coming online throughout Europe.  According to reports from the Paris Notary Chamber, second quarter figures for 2007 show property prices are rising and that apartments in the City of Light (La Ville-lumière) remain hot commodities.

Although many Britons find the trend to move to the French countryside is too appealing to pass up, some still enjoy the draw of the big city.  When it comes to legendary cities in Europe, few if any can compare with Paris.  In fact, the Chamber reports that about 7 per cent of Paris’ apartment investors are from other countries and if you’re interested in buying French property in Paris we have some essential advice for you…

When buying property in France’s Paris, Britons need to expect to pay a fair amount – that’s the first thing to get your head around!  Prices for apartments are on the rise and have been for quite some time.  Price increases are starting to level out a bit, but not enough to make Paris feel like a “cheap” market to Britons who have been looking in other locales such as Bulgaria or Morocco of late.

Prices on older, established apartments have risen by roughly 8% so far in 2007 alone according to the Chamber - this is strong but actually considered a diminishing rise compared to recent years’ movements, so the time to look for a property bargain could be now.

Whilst the second quarter figures also show a strong Parisian property market, there are a few trends would-be-investors might want to pay attention to.  For example, sales volumes are starting to decline and the rate of the rise in French property prices in Paris is starting to lessen in its fervor.  Although this does not signal a decline, it could mean good news for investors if apartments remain on the market longer than sellers desire.

Buyers here can expect to pay upwards of EUR 8,000 per square meter for apartments although prices for existing flats do run the gamut of the cost spectrum with it possible to find flats for under EUR 200,000, but EUR 300,000 to 800,000 buys are more the norm.

Although investing in Parisian property is an expensive proposition, expatriates who want to be in the heart of the arts and cultural scene often find living anywhere else will simply not do!  Investors, too, find the sustained tourism market in Paris enables them to appreciate a rather good return via rental fees.  Small flats here can rent for EUR 1,000 a month and even more for short-term vacation rentals.

The Parisian property market is more than holding its own in the face of newer developments in other countries.  Although prices in the City of Lights are still on the rise, buyers in Paris will find there is greater choice than they might have realised.  If slowing in sales continues, buyers might even find a bargain or two among the sights and sounds that make Paris so beloved by so many.

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