Those who are considering buying property in Paris (or moving to Paris) should read this blog!
Since Year 2000, the Paris property price by square meter (m2) has gone up 248%. And in August 2019, the m2 price has reached 10 000€!
One should remain cautious though, for the quality of property varies over districts. Therefore the best way to determine market value is by comparing a property with other like properties on the market. Via a new website established by the French Government anyone can now find the price of specific properties sold in Paris (and in France) from January 2014, when previously this information was only available to “notaires”.
Not taking in consideration the condition of the property which is unknown on the above website, here are a few examples :
https://app.dvf.etalab.gouv.fr/ is rather easy to use. Just select the Paris district (or the French department) then click on the cadastral section of your choice to obtain detailed information for each property sold since 2014.
Nota Bene : Price excludes notary and agency fees.
When it comes to paying one’s annual property tax in France (Taxe Foncière) -due in October- American buyers are sure winners!
For example, the tax on a 44 square meter one-bedroom apartment in the center of Paris reached 320 € in the 15th district (Lourmel area) and 640 € in the 8th district (Champs Elysées area). By comparison, the New York statewide average rate is 1.68 % of the property’s value, and the California statewide average rate is 1.08 %. Even in Italy the annual Property Tax is around 0.76 % of the property value. Make your own calculation!
It is therefore possible to say that annual Property taxes alone reduce the cost of Real Estate ownership if you are an American Buyer or an Italian Buyer in Paris!
As an investor, you might want to rent your furnished apartment while you are away from Paris. What about rent? Depending on the district and the furnishings of the apartment, the rent for furnished flats in Paris varies between 34 et 41 euros per square meter, maintenance charges not included*. In New York, expect to pay three times that, while in Los Angeles the average rent is twice as much.
*Maintenance charges of the building cover such things as concierge salary, staircase cleaning, elevator repair and electricity, water, gardening, etc. The more luxurious the residence, the higher charges get. These charges are often included in the rental price as “charges comprises.” If it’s not the case, it will appear as a separate item. The average cost in Paris for monthly maintenance charges is €25 to €50 per square meter, per year.
The part of maintenance charges paid by tenants is deducted for the main part from the maintenance charges due by the property owner.
So Is Buying an Apartment in Paris a Good Investment? Last year, the share of foreign buyers in the capital amounted to 8.6%. They are particularly present in the 4th district (25.1% of buyers), in the 8th district (15.4%) and the 13th (13.1%).
In Paris, the #1 foreign buyers among the most represented nationalities are the Chinese. For your information, here are the top five foreign buyers by average budget :
So yes, I’d say that buying an apartment in Paris is a good investment. Wouldn’t you? In any case, if you come to visit Paris and wish to see some properties for sale, call Paris Rental at 00 33 1 43 12 98 00. And while you search for your dream apartment, stay in one of the high standing furnished apartments listed by Paris Rental.
Welcome to Paris!
Picture Crédit : Adrien Olichon
