Paris property market update – November 2023

Photo: Tristan Guillemet, Unsplash

The Paris property market overall continues to resist any significant slow-down while the very top end of the market displays healthy developments.

Value vs. volume

Ultimately, Paris remains an ultra-small market with only a handful of properties available at any given time. Low stock and and tough negotiation are what characterise the top end of the market.

Though it is true that, overall, prices in the Paris property market have corrected, our buyers only want the best of the best. So there is really no big price differential. In general, it is the volume of Paris sales rather than property prices that have been most affected by steep rises in living and borrowing costs.

Prime residential property markets have been better insulated from the rising interest rates and stricter lending criteria than the mid-to-prime market.

Always in demand

As with any city, global and local developments may temporarily affect the Paris property market. But the city remains a sought-after location for investment. Since 2022, private equity firms have shown increased interest in Paris. They are attracted by prime areas such as the 6th, 7th 8th and 16th arrondissements and the assurance of a safe asset.

In terms of nationalities, recently an increase in buyers from Kuwait and Taiwan has been noted of late. As the Olympic effect kicks in, we expect to see greater interest coming from other countries. However, this will undoubtedly be more strongly felt after the 2024 games which are sure to elicit a strong emotional response from viewers all over the world.

UHNWIs are the new HNWIs

Recent trends would indicate a shift from high-net-worth to ultra-high-net-worth buyers. We have seen an increase in transactions above €10 million while the €5-10million bracket has been slightly more affected by the credit / lending situation resulting in a cool-off.

For our Founder and CEO Susie Hollands, this seems to mirror central London. “The London market is one I work with and review constantly,” she says, “because we have a lot of the same buyers in Paris. We see that luxury turnkey properties are selling very well as long as the address is triple A.” Prices between €28 and 45,000 per square meter are the norm in the best districts which are the 7th, 8th and 16th arrondissements.

New ways of working

Certainly much more work is done using video on zoom. Time-conscious customers manage to touch down for 2 to 3 days to view shortlisted properties and then switch back to working remotely to finalize the transaction. Sometimes this can take many months as international banking and our famous French administration tends towards a lengthy process.

Our extensive experience in connecting international clients with their ideal Parisian property means we have been able to easily adapt to this transition. We continue to offer our clients the very highest level of service and expertise, guiding buyers through the complexities of acquiring property in France every step of the way.

Working with a buyers agent is more important than ever. The top level of the industry means that a lot of the good properties do not make it into the big firms. This is because sellers demand extreme discretion. Many prestigious properties are off-market and access is dependent on the kind of strong, personal connections such as those that we have been able to develop here over the last 20 years in Paris.

If you would like to find out more about how we can help you find the right Parisian property for your portfolio, please get in touch.