Recently, luxury real estate market in Paris (properties priced at more than €1 million ) was in the apparent stagnation. Now the situation is improving thanks to foreign investors, according to ee24.com citing globalpropertyguide.com.
Why are foreigners interested in Parisian real estate market?
The first reason is the events in Syria. It prompted buyers to seek a peaceful haven in Europe.
The second reason is dropping of prices by about 10% over last year. This was caused by the actions of the new socialist government of President Hollande, which increased taxes, forcing such rich and famous people like actor Gerard Depardieuto to go abroad. The French stopped buying expensive real estate, while the proposal remains on the same level. In the prestigious areas of London price is about €20 thousand per sq.m, of NY - €15 thousand per sq.m, while in Paris a similar property can be purchased at the price of € 10 thousand per sq.m.
Finally, another reason is that Draconian tax laws are not applied for foreigners.
Perhaps now is the best time to invest in real estate in Paris. And buyers from the Middle East capitalize on it. For example, recently a resident of Qatar paid €44 million for the XIX century mansion of 2600 sq.m, located near the Champs-Elysees.