The world’s wealthiest always as eager to invest in luxurious homes. And for them, France has become a much more affordable destination over the last few years.
Luxury real estate remains strong in the world. Large fortunes are becoming more and more mobile. They hold residencies in several countries and it is primarily the country’s security, which motivates their investments.
But the evolution of currencies is also a factor to be taken into consideration. How much has the rise of the Euro boosted the luxury real estate market in France?
The rise of the dollar against the euro has for some crept up without actually realizing. Combine this with the face that real estate prices are increasing at home and dropping in France and luxury French real estate now offers a heady mix for US buyers.
Roughly speaking, in 2009 Paris was 20% cheaper than London and 10% more expensive than New York. Since then, this scale has been turned upside down: New York is now 70% more expensive than Paris and London is 2.7 times more expensive than Paris.
The British capital is still arguably at the top of the list for international investors looking to invest in Europe. This year though, Europe’s perennial go-to choice for property investment may see a little drop due to the recent changes in CGT tax i.e. non-residents now actually have to pay it.
Paris still has room for negotiation. The wealthy French who left upon Hollande’s announcement of wealth tax are yet to return and according to local agents the stock of period properties, most of which require renovation, still remains.
And they take advantage of the fact that the owners are trying to readjust their prices. Local agents suggest that price drops of anywhere up to 25% since 2011 are prevalent for goods exceeding 200 square meters or 2 million.