Posted on 11 October 2017
The election of the youngest President in the history of France seems to have woken the Paris luxury property market from its slumber, following a 14% price slide in the five years to the middle of 2016. He may have only just moved into the Élysée Palace, but Emmanuel Jean-Michel Frédéric Macron’s influence is already being felt at the top end of the capital’s property market, where average high-end home sales prices have increased by 9% so far this year, according to Knight Frank.
Overseas buyers whose budget stretches much further than a small pied-à-terre –holiday apartment to you and I – located in an outer arrondissement have also been helping to inspire this resurgence. As the best apartments in town began dropping in price from €17,000 per square metre at their peak to €12,000 a year or so ago, savvy overseas buyers have snapped up properties at huge discounts. Now it appears they will only grow in value under the President’s new regime.
Despite these property price gains, the average sales price in prime central London locations (equivalent to €30,485 per square metre) remains significantly higher than in Paris’s smartest spots (€17,461).
Big budget overseas property buyers are on the verge of getting another welcome boost from Mr Macron, who will make good on his election campaign word. As promised he will reform the country’s unpopular wealth tax. From next year the tax – which currently applies to personal assets of more than 1.3 million euros – will only apply to real estate, meaning other forms of wealth such as shareholdings in companies will be exempt. This move that will make the capital’s most salubrious neighbourhood’s even more desirable.
For a step-by-step guide to buying a property in France, download the France Buying Guide by clicking here.