Real estate: the super-rich prefer New York and Paris
2 February 2018
ACCORDING TO AN INTERNATIONAL STUDY, NEW YORK IS THE FIRST CITY WHERE TO WANT TO LIVE THE MILLIONNAIRES. BUT IT IS NOW TALONNED BY PARIS WHO WAS ONLY THE FIFTH PLACE OF THIS CLASSIFICATION LAST YEAR.
Decidedly, everyone is tearing off Paris real estate. While the local market has experienced record levels of sales and strong price increases boosted by domestic demand, foreigners are also increasingly interested in the French capital. Recently, a study showed that luxury real estate prices in Paris are expected to rise the most this year in the world (with an expected rise of 9%). This international appetite for Paris is confirmed in the annual Global Property Handbook conducted by the Barnes and Warburg real estate networks.
There is confirmation that North America is still favored by people with more than a million dollars, since there are 5 of their 10 favorite cities in the world. These are New York (No. 1), Los Angeles (No. 4), Toronto (No. 6), San Francisco (No. 7) and Chicago (No. 9). The "Big Apple" has stolen the leading place in London that pays the effects of Brexit. But not so dearly, since the British capital now ranks third. Paris, for its part, makes a great comeback, moving from 5th to 2nd place in this ranking.
ALL FOREIGN RETURNS EXCEPT RUSSIANS
"All foreigners are back in this market, with the exception of the Russians," said Thibault de Saint-Vincent, president of Barnes. And there are also many senior executives and leaders returning from abroad and with a budget of 2 to 4 million euros. "To the extent that demand remains at high levels while the offer goes up again, the network sees a "landing prices." The heart of Paris always attracts foreigners looking for a pied-à-terre as well as the youngest and oldest buyers, without children. In the 8th arrondissement, for example, one-third of buyers of luxury goods are foreigners. As for families, they are less and less reluctant to leave the capital for the west of Paris, their family environment and schools.
Evidence of renewed enthusiasm, the Barnes network recorded over the past year no less than 74 "flash sales". Transactions that can amount to several million euros, concluded without negotiation, the first visit ... And the network to cite the example of a duplex of 181 m² sold immediately to Neuilly-sur-Seine (Haus -de-Seine) for 2.52 million euros. Or a sale at nearly € 20,000 per square meter concluded in one week with French buyers offering a 156 m² to renovate ... The prospect of the IFI (tax on real estate fortune) does not visibly repulse all the world.
And if Paris remains the undisputed locomotive luxury real estate French, the other French destinations are not doing bad either. The Côte d'Azur and keeps the rating especially with Cannes but especially with the return to the forefront of Saint-Tropez returning to fashion after being a time eclipsed by destinations such as Ibiza or Sardinia. Ditto for the resorts of the French Alps who dawn the pawn to their Swiss neighbors.