Paris: a sure investment for a diverse, international clientele
High end real estate has taken off after the financial crisis of 2010 in cities like Paris, London, and New York. Prices rose 20% in Paris between January 2010 and January 2011, according to Nestoria. But how is this so when the economic outlook is so dark? The answer is massive foreign investment.
What is it about Paris and foreign buyers?
Prices tend to increase with the arrival of wealthy foreign investors. Whether they be South American, Chinese or Italian (in the Marais, nearly 1 buyer out of 2 is Italian according to the Chambre des Notaires d
e Paris). Wealthy foreign investors consider Parisian real estate as the safest of investments.
The main reason is that the construction of new buildings with high standing is rarely possible. Paris retains its appeal: the housing is expensive but very well located, in fact, that is what the Beckham couple seems to be looking for (David Beckham will shortly be joining the PSG).
According to the two major real estate power houses in Paris, Barnes and Féau, prices should stabilize in 2012. And in comparison with other global real estate powers, the experts with Nestoria say that, “Paris is still the safest city for long term investment regardless of currency fluctuations,” and further that, “London can emerge as an alternative but less so in the aim of surplus value.”