Paris is back in the real estate game24 August
If Brexit has a strong impact on the global luxury real estate market in 2017, it is not the same for the election of Donald Trump.
Which are the favourite cities of the rich? Between 2016 and 2017, Paris jumped from fifth to second place in the ranking of the favourite cities in luxury real estate, confirmed by the Barnes and Warburg networks. Paris is now ahead of London and just behind New York.
Two of the top four cities in 2017 are American (New York and Los Angeles), proving that the beginnings of the Trump presidency hasn't diminished property investors' attraction - however the two cities are largely in opposition to the president.
On the continent, London has fallen by two places. A collateral effect of Brexit? "In part, but it's not only that", say the authors of the report. "It's more like a soft landing. The international clientele remains present, especially as the decline in the pound creates opportunities for those who invest in dollars and euros. "
Paris and New York have clearly benefited from Britain's announced departure from the European Union and Paris even more so since the election of Emmanuel Macron and the city being confirmed as the host of the 2024 Olympic Games. "Various elements that make the French capital a metropolis were judged as more stable and attractive than Barcelona, for example" the study continues.
The numbers reflect this. For example, high-end goods transactions (at more than €1m) jumped 25% in 2017 according to Barnes, and prices rose by an average of 10%. The Parisian luxury market was boosted by the strong presence of foreign buyers. In some Parisian districts, they represented up to a third of buyers. Barnes also highlights the dynamism of French buyers. The replacement of the solidarity tax on wealth (ISF) by the real estate fortune tax (IFI) clearly did not dampen buying decisions within the luxury industry.