Paris, the right adress, Luxury real estate in Paris

Very attractive. Thanks to a more international and wealthier clientele. Around twenty transactions in Paris between 2006 for properties worth four million euros and more doesn’t sound like much. “But this figure has doubled compared with last year, which shows the kind of interest this market is generating,” says Marie-Hélène Lundgreen, director of Belles Demeures de France, the international department of Féau Group, and an exclusive Christie’s associate. Demand, then, is accelerating, “driven by a mobile clientele which already owns several residences around the world and for whom Paris prices are affordable compared to those elsewhere,” explains Nathalie Garcin, CEO of Emile Garcin.

The already established British and Americans, Italians and Middle Easterners are now being joined by Russians, Brazilians and Asians, “new, very wealthy buyers who are purchasing outstanding properties which have been on the market a long time for lack of takers,” says Christian Moulin, of Prestige et Châteaux, Eric Mey Group. What they are looking for is first and foremost a pied-à-terre that doesn’t necessarily have to be very large. “Prestige means properties sought by a clientele with high purchasing power and an eye for exceptional places with very high architectural quality, extremely well-appointed, at a good address and with a view” says Hugues de La Morandière, associate director of the Varenne agency. The sort of criteria that take anything from six months to a year of patient waiting. “Luxury properties were already hard to find, and truly outstanding products are even rarer when there’s a general shortage,” regrets Jean-Jacques de Pioger, head of the Vaneau agency in the 6th arrondissement. This is why they sell fast when they manage to combine an attractive location with building quality. “Make no mistake, these buyers are very clued in, and the prices displayed by sellers need to be justified,” adds Marie-Ange de Charry, joint manager of MADC.

Service as well

For a hôtel particulier (individual town house), the starting price is €3 million. Most of this segment sells between €3 and 6 million, and a residence with fine situation will start at around €7 millions. If an apartment is negotiated for around €12,000 a sq. metre, it means that one of the special criteria is not being met. You need to think in terms of €15,000 a sq. metre if you want to combine location, view, and the flat and building’s own qualities, and €20,000 for a balcony or a very good address. What is new is that international clients, including expatriate French people returning home often found in this prestige niche, are communicating their taste for luxury to the capital itself. Hence the recent appearance of prestige buildings restored by wealthy English or American investors, “where, in addition to the address and quality, services such as building manager, car valet, and cleaning make all the difference,” says Philippe Perello, manager of Knight Frank. Take 81, avenue Victor-Hugo, in the 8th arrondissement: a well-appointed prestige residence and a view of the Eiffel Tower, which went on the market in the spring starting at €12,000 a sq. metre.” This program, which meets international standards for prestige, demonstrates the inevitable growth in this type of supply,” forecasts Laurel Conway, negotiator in the Paris department of Philip Hawkes.