Global investment experts Jones Lang LaSalle (JLL) and Ernst & Young (EY) have published their annual ‘Why invest in Paris?’ report. It targets foreign investors searching for opportunities to invest in foreign real estate.
Why is now the right time to invest in Paris real estate?
In 2015 and 2016, investors contributed nearly €20 billion per year to the Paris investment market. The city contributes to 31% of France’s total GDP.
Moreover, the residential market in Paris continues to prosper regardless of geopolitical events and fluctuations in the financial markets. Paris therefore makes a solid investment over time.
What makes Paris more attractive than its competitors?
In addition, Paris is the world’s most popular tourist destination. The city is a primary shopping destination and is renowned as the home of numerous luxury brands. The bustling hotel sector offers 10 properties in Paris with « palace » status, a French designation for an ultra-luxurious establishment.
Prices on the rise
The report states that pre-owned property prices increased by 4.4% in Paris. The most expensive districts were the 6th (€12 200/m2) and the 7th (€11 530/m2). The average price at the end of the year was €8 340/m2. Prices have since increased to an average of 8 670 €.
A global center for business
Paris houses the largest office market in Europe. It is divided among La Défense, the purpose built business district and the Central Business District. In total, Paris has around 53 million m2 of office space. This is the largest in Europe and the third largest in the world. Moreover, in commercial real estate, Paris has one of the most ‘structured and transparent property markets in the world.’
Expansion of Paris and the ‘Grand Paris’ project
JLL highlights that Paris is currently embarking on an expansion project called le Grand Paris (Greater Paris). This project will develop the areas around Paris and encourage businesses to station themselves in these areas.
In addition, this will better connect the suburbs to the city center. Improvements include 4 new metro lines and the extension of existing lines and the RER, the regional train system.
All things considered, we at 56Paris agree that now is the perfect time to invest in Paris real estate. In addition to the factors mentioned in the report, the following indicators all speak to a continued upturn:
In light of Brexit, the Parisian property market is booming as investors look to move their operations elsewhere.
With France hosting the Olympics in 2024, the Greater Paris area is sure to expand and develop even more.
If you want to take advantage of Paris’ thriving property market, invest in Paris real estate or find a primary residence, please contact us.
Photo credit: Benh LIEU SONG