French property - Special French property report14 June
M. Tripard’s view is at odds with Savills which describes Paris as the biggest loser of 2012 when compared with other big international cities. It said Paris prices fell 3.4% in the sixth months to June. This placed it bottom of the representative list of 10 world cities, where Hong Kong was first with growth of 7.4%, while London and New York were fourth and sixth with increases of 2.8% and 1.1%.
The Eurozone crisis and recent taxation on investors gain continue to discourage investment in euro-denominated assets. Further price falls now seem unavoidable and London is the potential beneficiary as international money seeks an alternative haven within the geography of Europe but outside the Eurozone
However, for some in Paris, these changes won’t affect the market because the top-ten properties are bought by people not domiciled in France. Thus, the changes to the latest tax rules won’t affect them much. Moreover, prices keep on increasing in the 6th, 7th, and 8th arrondissement, mainly purchased by non-French residents.
The general cooling in prices could see the reappearance of bargains in the vibrant 18th, 19th and 20th arrondissement in the northeast where
working class areas are being gradually gentrified. They are the only places where you can find places under 8.000€ per square meter.
Source: Financial Times