PARIS BUYER S GUIDE Dear Salah, Peter and I just wanted to thank you for your help and advice in our search for a Pied a Terre in Paris. Your local knowledge has been invaluable. Margaret & Peter T. DISCOVER PARIS PROPERTY PRICES IN PARIS LONG LET / SHORT LET INVESTMENT EXAMPLES REGISTER YOUR INTEREST
DISCOVER PARIS Paris is the capital and largest city of France, situated on the river Seine, in northern France, at the heart of the Île-de-France region. The Paris metropolitan area has a population of 12,000,000 and is one of the most populated metropolitan areas in Europe. Paris is divided into 20 different districts called arrondissements. The 1st district is in the centre of Paris and the other districts go round clockwise in a snail shell shape (with the 20th district being on the outer side of Paris). The main attractions are mostly in the first eight districts. These include the Musée du Louvre, Saint Germain des Prés, Notre Dame Cathedral, the Eiffel Tower and Les Champs-Élysées.
DISCOVER PARIS Map of Paris showing the 20 different districts (Arrondissements) Pigalle Montmartre Marais Champs Elysees Bastille Montparnasse St Germain (latin quarter)
PROPERTY PRICES IN PARIS It is a well known fact that property prices have always been higher in Paris than in the rest of France, and keep soaring. However, in 2014 the Ile-de-France region (Greater Paris) has seen a decrease of 2.6% in property prices (reference: paris.notaires.fr). This decrease in prices give an opportunity to buy at the right price. Moreover, in central Paris itself properties prices have decreased by 2.9% last year compared with 2013 (they increased by 22.9% over the last 5 years). Prices vary according to the districts; there is in general a significant difference between the first 8 districts and the 12 others. Indeed, the first 8 districts tend to have a square metre price which can vary from around 9,170 to 11,300; the 6 th district is more likely to be the most expensive but its prices have reduced by 7.4% in 2014. The square metre price in the other districts vary from 6,500 to 8,800 (source: paris.notaires.fr). On top of that, buying an apartment in Paris can be difficult without the help of a good estate agent as there are a numerous prospective buyers and not many available properties on the market (although most of them are sold off-market, at Sextant we have access 1,300 exclusive mandates for sale in Central Paris which are not displayed on the Internet). Alongside the stable political situation in France, Paris attractiveness will never cease and that s another reason why we believe investing in the French capital will always be one of the safest investments in the world. Especially before prices become totally unaffordable for most.
PROPERTY PRICES IN PARIS Price variation of apartments in Paris in each arrondissement (in %) 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th -10.0% Variation 1 Quarter Variation 1 year Variation 5 years Source: Paris Notaire (land registry)
LONG LET Mostly known as the bail 3/6/9 in France, this long-term lease is a contract dealing with the lease of residential facilities. A long-term let deals with the relationship between the landlord and the tenant. The regulation of residential leases is made of public policy provisions, which means that you cannot waive it. This residential lease lasts for 9 years with a rent review every 3 years. Both parties can terminate the rental contract by giving 3 months notice. SHORT LET More interesting than the long let, a furnished short let allows the landlord to review the price on a more regular basis. In Paris, short let means renting an apartment from 1 week up to several months. It is designed for people who spend their holidays in Paris or for expats who have just arrived in Paris and need quick accommodation before finding a long rental lease. It is very difficult to find a good property to let in Paris, that s why it usually takes a few months to find the right one. Unlike the French Riviera which sees peak season during the summer with high holiday rental prices, Paris is an all year round tourist location with 27 million tourists per year (source: www.paris.fr ).
SHORT LET INVESTMENT EXAMPLE Paris 2 nd Arrondissement Price: 1,150,000 2 bedrooms Living area: 81sqm Private lift Situated on the right bank of the River Seine Short let potential: Price: 1701/week Annual rental income: 79,607 with 90% occupancy Yield: 6.92% Gross
SHORT LET INVESTMENT EXAMPLE Paris 8 th Arrondissement Price: 2,394,000 Living area: 230sqm 3 bedrooms 1880s stone building Lift Short let potential: Price: 3,375/week Annual rental income: 157,950 with 90% occupancy Yield: 6.60% Gross
REGISTER YOUR INTEREST London office: United Workspace North road London N7 9DP Tel (UK): +44 (0) 207 4284 910 Fax (UK): +44 (0) 207 4284 919 Paris office: 1 rue de Stockholm 75008 Paris France Tel (FR): +33(0) 1 70 61 27 15 Fax (FR): +33(0) 1 44 70 00 19 Email: info@sextantproperties.com Website: www.sextantproperties.com