High-end home values in Paris jumped last year, as wealthy buyers were drawn to the city’s good value and investment stability, according to a report Thursday from Savills in London.
Values of prime properties defined as those priced at $2.2-M and up in the French capital rose 6.4% in Y 2019, compared to 4.5% during Y 2018.
Buyers in the city are increasingly turning to mansion houses and fully furnished, full-service apartments, which are particularly sought after by international buyers, the London-based estate agency said.
“The city’s residential market is currently benefiting from an alignment of factors that have driven domestic demand and boosted its global appeal,” the CEO at estate agency Agence Varenne, an international Savills associate, said in the report. “Domestic reforms under President Macron, low interest rates and a stable economy are some of the factors fueling growth.”
Other cities globally failed to recreate Paris’s success last year, logging slowing or falling growth, according to the report.
Price growth in the City of Lights was 2nd only to Berlin, which saw prices rise more than 8%, and cities including New York, London, Dubai and Hong Kong saw prime prices fall last year.
“Prime property in Paris is viewed as a safe, long-term store of wealth and, to international buyers, values are attractive by global standards,” Savills World Research, said in the report.
High-end homes in Paris cost an average of just over €15,000 per sqm. By that benchmark, typical property costs in the city are 66% lower than in Hong Kong, 37% lower than New York and 17% lower than in London, according to Savills.
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