A study found that Paris was number two when it comes to European property investment from the super-rich, second only to London.
The study looked at global property investment activity among ultra-high net worth (UHNW) investors – considered to be people who have a household wealth of over €24.2million – finding Paris came 12th overall, and second in Europe.
The research ascertained that the French capital was particularly popular with investors from America, the Middle East, and elsewhere in Europe. Breaking the French capital down, the 1st, 6th, and 7th arrondissements (districts) were the most popular among the UHNW.
However, signs of gentrification are creeping into the less well-known and somewhat less developed area of the 10th arrondissement, as UHNW investors are becoming more active in the district.
This is a neighbourhood which benefits from a canal-side location and lively selection of bars and restaurants, so UHNW investors are recognising its popularity among the younger generation and investing accordingly.
In this district, properties are currently selling at between €7,500 and €9,500 per square metre, with €9,000 the average for Paris in general. Now is the time to get into the property market, as average prices across Paris are set to rise to €9,300 in a very short space of time.
The popularity of French property for European property investment is certainly reflected in our borrowing figures, as France was our most sought-after location in Europe, with €297million of enquiries for our International team last year.
Appetite for property in Paris has been significant this year. We also expect the demand for French property to continue to grow, given the new Wealth Tax changes which have come into effect this year, meaning investors will be taxed solely on their real estate assets, rather than all financial assets. This will exempt all other wealth (such as securities, bank and financial investments) – great news for investors of French property.
Whilst London came first in the study, other European cities popular with UHNW investors included Frankfurt (13th), Geneva (17th), Zurich (18th), Moscow (23rd), Munich (28th), Amsterdam (34th) and Rome (36th).
Elsewhere in the world, New York, Hong Kong, Shanghai and Los Angeles lead the way, taking the second to fifth spots after London.