The latest new construction Paris apartments can be an appealing choice. This holds true for both buyers and investors.
But is it viable to buy a brand-new property in the historic French capital?
We take a look at the benefits for those seeking a more contemporary style of Parisian housing.
Reduced notary fees of 2-3%
Many may wonder if buying a brand-new apartment in Paris is even possible. The answer is that yes, you can!
New construction apartments can be a draw for those wanting larger elevators, disabled access and so on. Things that can be hard to create in older buildings.
As new construction is limited in Paris, developers will often purchase period properties, then redevelop the interiors. This provides the best of both worlds. The charm of a classic old building, with the modern benefits of contemporary living inside.
Entirely new buildings are rare, although they do crop up occasionally. They are popular too.
A major benefit of buying new is a reduction in notarial fees. These are the local taxes and charges all buyers must pay when purchasing property.
When buying new, the notary fee is just 2-3%. That’s a substantial saving off the maximum fee of 7.7%.
Brand-new apartments also make good rental investments. Partly because they remove the worries and stress of ongoing repairs.
There are fewer new construction Paris apartments
The building of new houses and apartments is not as common in Paris as other world capitals.
In London, for example, there are plans to build 66,000 new homes every year. Quite an astonishing amount.
New York is also in the midst of a building boom. The Wall Street Journal reports permits for 26,547 new housing units issued there last year alone.
The rate of new residential construction in Paris is far more modest. Which is in keeping with the traditional character and low-rise skyline of the French capital.
The limited availability of newbuilds in Paris also makes them more desirable and sought after when they do appear. And their variety of benefits command a premium price.
One new construction project lies in the northern 14h district, not far from the Luxembourg gardens. Here a spacious one bedroom sells at 15 200€/m². As one would expect, this is higher than the average price of 13 400€/m² in the area. And the 4 bedroom penthouse duplex with three balconies and a 750 sq. ft. terrace is offered at 22 600€/m².
The benefits of buying ‘off-plan’
France offers La Vente en État Futur d’Achèvement (Sale in Future State of Completion) or VEFA. This is the purchasing a new property ‘off-plan’ before its construction.
As an off-plan buyer, you make payments in several installments on new construction Paris apartments. In return, the seller must deliver everything described in the plans, and meet the delivery date. The last payment is due upon completion to finalize the purchase.
A VEFA purchase has several benefits, which can make them especially appealing to buyers.
As you would expect, the property must conform to the latest energy performance standards. This makes them more efficient to run, both as a home or rental.
The lower notary fees represent another cost savings that makes them desirable.
Finally, VEFA buyers have legal protections. These include a two-year guarantee on the equipment, and a 10-year guarantee on the construction itself. This is in contrast to the absence of guarantees when not buying new construction. In that case, property is sold “as is.”
Reassuring guarantees: biennial and 10-year
The two guarantees cover different aspects of new properties.
The biennial guarantee, also called the guarantee of good functioning, covers the equipment within the property.
This includes visible plumbing such as sinks, faucets, toilets, radiators, water heaters, and boilers. Also, intercoms, electric shutters, and the air-conditioning system. And certain elements of fitted kitchens, if built into the structure. Suspended ceilings, movable partitions, doors, and windows are also covered.
This guarantee is valid for two years. It begins when the contracting authority officially accepts the construction of the accommodation.
The second warranty is a ten-year building guarantee.
For a decade, the buyer has protection for the building’s main structure. This includes cover for any poor workmanship on the structural elements.
It means the builder must repair any damages caused by natural wear and tear such as cracks. Along with any changes to the solidity of the structure. This includes the roof if applicable, load-bearing walls, and general waterproofing.
Here to help you buy property in Paris
If you are looking to buy property in Paris, please contact the team at 56Paris to see how we can assist you.
Our team are experts on the local real estate landscape, whether you’re looking for existing or new construction. They are happy to offer free, no-obligation advice.
Photo – Cogedim