The prestige property market in France is hitting new heights as demand soars, driven by domestic and international buyers, thriving economy and tax changes. If you own a property you can rent, it can produce steady, predictable income (read this article for details).
Not only did the French market see a record 970,000 transactions in 2018, up from 564,000 in the depths of the Crise Financiere, but we are seeing demand especially buoyant in the top tier. Since the end of President Hollande’s Wealth Tax, the country is a more tempting proposition to HNWI’s and UHNWIs (those having net assets of over $30m excluding their primary residence). It is estimated that there will be a 22% increase in Paris alone over the next five years. Other reasons behind this include low house prices and cheap finance, and the new IFI tax that only applies to real estate assets. Of course the French capital is the driver, where prices rose by 5% in 2018, and the largely domestic market is becoming more international – over the last 12 months, international buyers have jumped from being 9% of the prime market in Paris to 14%, as investors see the value of property here compared to other global capitals such as London, New York, Singapore and Hong Kong (where the price per m2 is double that of Paris). The Alps are also attracting a steady stream of wealthy buyers, keen to keep up their appeal with continued investment into lifts, festivals, and year-round tourism, that leads to attractive rental yields. But wherever they are, AAA locations remain key, along with the demand for high-speed broadband access, proximity to high-class restaurants in the country and a garage or parking space in cities.
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