A Tale of Two Cities: Paris & London
The expansion of the world’s population of high-net-worth individuals in triggering increasing investment in international residential property.
The Paris residential property market, along with London, represents one of the two largest markets in western Europe, and are highly sought-after by international investors and lifestyle purchasers alike.
Request/Download your copy of this free report by Chestertons which analyses the two markets in terms of their size and performance and examines their short-term future prospects. Each city is analysed in terms of:
Paris is the largest city in France and the economic and political centre of the country. Covering an area of 105 km2, it is one of eight administrative departments within the Île-de-France region and is subdivided into 20 arrondissements.
The Île-de-France suffers from a shortage of homes owing largely to poor housing construction rates, which are low given the size of the market. A strict planning approach, especially in Paris, is mainly to blame for this situation. Residential construction starts over the past decade have averaged just under 51,000 per annum in the Île-de-France and only a little over 3,500 per annum in Paris. Average construction rates have picked up in the
Île-de-France in the current decade compared to the noughties (56,640 p.a. v 41,870 p.a.), but the corresponding improvement in Paris construction rates is modest: 3,700 p.a. v 3,620 p.a.
London is the UK’s largest and wealthiest housing market and has expanded rapidly in recent years. The number of households in London has grown since 1991 from 2.8 million to over 3.3 million. Over the same time period, the number of Inner London households has risen from 1.1 million to 1.4 million. The housing stock has risen from 3.1 million dwellings in 2001 to 3.4 million in 2014 – an 11% increase.
Tenure trends have changed dramatically in London since the beginning of the noughties. Owner occupation has fallen from 56.5% of households in 2001 to 49.9% in 2014 while the private rented sector has expanded from 15.5% to 26.8% over the same period. The change has been even more pronounced in Inner London where currently 36.7% of households own their property and 30.9% rent privately.