PARIS Dollar Swing Sets the Paris Property Market up for a Boom.

“There has never been a better time to invest. We have seen international property investment increase 4% in the last 6 months, and with the current rate of dollar investment, prices are set to increase" says Camille Letuve, a Partner at Athena Advisers,

PARIS

Dollar Swing Sets the Paris Property Market up for a Boom.

“There has never been a better time to invest. We have seen international property investment increase 4% in the last 6 months, and with the current rate of dollar investment, prices are set to increase" says Camille Letuve, a Partner at Athena Advisers,

In an article published last year, The Financial Times showcased Paris as a property market on the up, with USD buyers flocking back to one of their best beloved European haunts thanks to the steady rise in the dollar versus the Euro, a 0.3% percent increase in the past two years. It was welcome interest in a market that had suffered stagnation in the wake of the President Hollande’s election in 2012, prompting high-earning Parisians to relocate to London to avoid crippling taxation, with international buyers wary to invest in a Socialist government.

Then, on the 24th of June, spurred by uncertainty over Brexit, the dollar jumped 4.5% against the Euro to €0.92, offering one of the best exchange rates in years. Combined with 20 year mortgage rates fixed at an all time low of approximately 2% and a general election set for 2017 showing early signs of a right-wing victory, Parisian property is well-positioned for a golden moment. 

According to Camille Letuve, a Partner at Athena Advisers, “There has never been a better time to invest. We have seen international property investment increase 4% in the last 6 months, and with the current rate of dollar investment, prices are set to increase. Those investing in high-end property now could make a significant return”. He goes on to predict, “A Parisian property boom is looming on the horizon”. According to Athena Advisers, an appartment of 290sqm in the 16th, close to Trocadero, which would have cost 3 200 000 € one year ago has been sold 2 700 000 € in 2016.

International investors are creatures of habit, they buy where they know”, says Camille. “The recent influx of enquiries are primarily in the 6th Arrondissement for Brazilian buyers, the 7th for USA buyers and the 16th North and 8th Arrondissement for Middle Eastern buyers. If the dollar continues as it has been doing, it is here that we will see substantial growth and return on investment

Unlike in London, where prime property prices in areas such as Mayfair are already extremely high, the average high-end property in Paris sells at €10-15,000 per sqm2 with a few exceptional outliers reaching €20,000m2. “It’s still possible to invest in high-end property for a reasonable price in the city’s most desirable areas”.

“Before Brexit the London property market was overheating” explains Camille, “Post Brexit, prices are levelling out.” As global firms consider relocating their financial headquarters from London to other EU cities, Paris is predicted to be one of the primary beneficiaries. “HSBC are planning to move over 1000 investment banking jobs from London to Paris. They will all need apartments. Everyone is in a wait and see situation”, says Camille “But this, in combination with the 2017 French election, is making Paris increasingly attractive to savvy international buyers”.

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