Which neighborhoods are luring foreign buyers to Paris?
Despite the hard times that have faced France and the European economy in the last year, real estate in the French capital is still providing a safe and sustainable investment. Prices in Paris rose a historic 2.7% in the last quarter of 2011, making Paris reputably some of the most expensive ‘bricks & mortar’ in the world.
But, this high-demand, low-supply market that is Paris real estate, has caused an interesting shift in where buyers are focusing their investments, especially foreign buyers.
Niche pockets in up-and-coming districts almost always deliver above average yields. -Sarah Francis, London Agent, Sifex
A perfect example of this ‘niche’ pocket would be the 10th arrondissement of Paris. Located just to the East of the 9th, and just above the bobo chic, Northern Marais neighborhood of the 3rd arrondissement. Capital appreciation here hit 10% last year, while property prices stayed at about 1/3 of the price of property in the 1st and 6th arrondissements.
Another area to keep your eye on this year is the quaint village, La Butte Aux Cailles, in the 13th arrondissement. Not far from the Luxembourg gardens and all of the charm of the 5th arrondissement, the 13th is full of culture and character. The Butte Aux Cailles village in particular is a preserved, old-Paris retreat within the urban feeling of the ‘Chinatown’ neighborhood. Both here and in the 19th arrondissements you can find property at as low as €5,000 per m2.
Read more about the up-and-coming neighborhoods for real estate investment, as well as what’s going on with the rental policies in Paris here. (The Telegraph, Laura Henderson)