Paris property values are expected to hit a new record high by the end of the year due to strong interest from overseas property investors.
According to research from WIRE Consulting, an independent company specialized exclusively in International Real Estate services, Paris property values are continuing to grow as a result of the strong demand from foreign investors.
The French capital had seen property values remain fairly stable since 2016 due to political issues and an overvalued market.
However, the ‘Macron effect’ has seen Paris property values soaring since the election of President macron in 2017, coupled with Brexit diverting international property buyers from London to other European cities, and especially Paris. Middle East investors have also been seen to be leaving Singapore and Hong Kong to buy in Paris.
Angelo Cinel, CEO of WIRE Consulting, said: ‘We predict property value to break records by the end of 2018 due to interest rates at historical lows, expected implementation of lower taxes on capital and removal of Paris rental caps. The French city offers relevant appreciation margins after what was a 5-year-long stand-by. Property prices have risen more than 8 per cent since 2017 and 2018 values are expected to keep rising.’
The increasing interest from overseas property investors has seen a boom in the number of Paris real estate transactions to over 10,000 in 2017.
As many as 30 per cent of those transactions involved high-value properties with an average price per square foot of over $1,000.
Prices and annual growth for Paris property values differ significantly between different arrondissements with higher values in the 6th, 4th, 1st and 7th arrondissements where average prices exceed $1,226 per square foot.
With interest from overseas property investors continuing to grow, it was felt that Paris property values could increase by up to 50 per cent of the current values.