Market Update: What’s in Store for 2012 and Beyond?
A number of factors are exerting downward pressure on the Paris real estate market, including tax reform, rising interest rates and the Euro zone crisis.
But, global factors, such as an influx of buyers from a host of non-Euro zone countries like Brazil, Russia and Australia, as well as the Middle East and Asia, seem to be balancing out those pressures, boding well for the Paris market. Australians benefitting from a strong currency, Brits looking for a place to park their pensions and Chinese buyers fleeing a real estate bubble at home are among those showing interest in finding a safe haven in Paris.
Restrictive controls on mortgages and financing help keep speculators at bay, while the limited availability of properties helps keeps demand high, and makes the French real estate market a seemingly less-risky investment opportunity for foreigners. Add to that the increasing ability to get by speaking English here and the sky-high prices in London, and Paris looks like a very good alternative for the wealthy international buyers.
Paris is also investing heavily in urban renewal and sustainability with the Grand Paris Project and riverbank renewal in central Paris. All these factors contributed to Paris being named best real estate city for investment and bode well for it’s continued popularity at least through this period of global economic uncertainty.