Real estate in Paris, facts, prospects and expert opinion
Paris is the capital of France, the largest economic and cultural center of the country, which is located in North Central France in the Ile de France region, on the banks of the Seine River. Paris has great international significance - the headquarters of UNESCO and the OECD, as well as the International Chamber of Commerce are located here.
The French capital is famous for its greatest architecture, famous fashion houses, perfumes and unique French cuisine. Paris is rightfully the standard and emblem of French art and beauty. The history of Paris began in the 3rd century. BC. from the small settlement of the Ile de la Cité on the Seine River.
The French capital certainly attracts major business representatives as investors, including real estate. Buying residential or commercial premises in Paris means becoming a member of one of the strongest business communities in Europe. According to a study by the World Travel and Travel Council (WTTC), Paris in 2022 took 1st place in terms of the contribution of foreign capital to the state’s economy and amounted to more than $35 billion.
Paris is the largest academic center in Europe, where more than 100 thousand foreign scientists and young scientists come every year for training and education. Thus, one of the beneficial strategies for Paris is investing in real estate that can be rented out to tourists or students.
Gross rental profit in Paris is around 4-5% per year in euros. Foreign investors who are tax residents of France are given the opportunity to receive tax benefits when investing in French real estate. Pinel's law to increase rental housing in cities where there is a shortage of housing allows for a return of up to 21% of the price of purchased housing for tax residents.
“Real estate prices in Paris at the end of 2023 were about 10k € per m2 in apartments and 10.7k € in private households, with an average rental cost of 33-34 € per m2 per month. In Paris, the average budget of a family of 2 people will be 2.4k € per month, in non-metropolitan France - 1.8k €,” cites statistics from the Development Director of VelesClub Int. Natalya Bazhenova.
Upon receipt of French permanent resident status, you acquire:
In the primary (new) construction market in France, we are seeing a decline of 40%, but developers are being pressured by inflation and rising prices for building materials and resources, so prices continue to rise. According to a report by our company's analysts, prices for houses are falling much more reluctantly than for apartments; Paris and its environs are under greater pressure from the situation.
“In 2024, Paris will host the Olympic Games, which will certainly develop infrastructure and increase housing prices, so if you have “real money” at the moment, then you can actively enter into investment projects in France at the most favorable rate. Don’t forget to enlist the support of leading companies in the world real estate and investment market for consultation and structuring of transactions to increase your capital,” summarizes the General Managing Partner of VelesClub Int. Sergey Tumanov.
