The French capital is still making a lot of noise, especially in the real estate world. The high-end property sector is developing particularly at the pace of the metamorphosis that the city is undergoing over time. The context is favourable for investors looking for a residence in the centre of Paris or who wish to invest in rental properties. Focus on the main assets of Parisian real estate.
A real estate market in favour of owners
It is well known that the City of Light is extremely popular. This is of course due to the cultural and economic dynamism but also to the tourist potential. In such a context, the relationship between supply and demand is naturally unbalanced, with the owners being greatly favoured.
The demand is for seasonal rentals as well as classic rentals that extend over many years. Students, senior citizens, families, expatriates… the profiles are varied, which allows owners to quickly find tenants.
Moreover, the solvency of Parisian tenants is much better than in other French cities. The relatively low unemployment rate and average to high incomes are reassuring elements for owners.
This is not forgetting the measures put in place to simplify property purchases, but this is a point we will develop later.
An ideal geographical location
The capital attracts people from all over the world at any time of the year and for good reason, it benefits from a strong geographical attractiveness. Served by airlines from the four corners of the world, it also serves as a stopping point for those who plan long journeys by land and wish to reinvigorate themselves before hitting the road again. At the same time, the city is home to the headquarters and branches of multinational companies, increasing its economic potential and automatically boosting the real estate market.
The attractiveness of Paris is increased tenfold by the Grand Paris project.
As a reminder, this ambitious project concerns the improvement of the urban structure, in particular the development of transport lines. Renovations within neighbourhoods and the transformation of the suburbs into extensions of intramural Paris obviously enhance the capital’s geographical attractions.
The statistics are clear: the number of sellers/renters is almost double the number of buyers/renters. This is particularly true in the most popular districts. Investing in stone is therefore an excellent option for making your investment profitable.
Short-term rentals are generally flourishing during holiday periods, which is not the case in Paris where demand remains strong throughout the year. Vacationers, students in study, professionals on mission… different profiles are constantly looking for a property.
In the long term, the demands are even greater. Companies regularly create new jobs that lead applicants and employees to move to the capital. University life and the school sector as a whole also attract young people and families. Prestigious house, contemporary apartment, romantic studio, the requests are rarely the same, allowing owners to pre-select different files in search of the ideal profile.
Furnished accommodation is an excellent choice in the sense that it puts a ready-to-live-in property at the disposal of applicants. In addition to the location of the property, the choice of furniture and the layout of the place are decisive in determining the rent. The profitability therefore increases in line with your investment.
Some profiles prefer unfurnished properties. This option offers them greater freedom of layout. In this case, it is essential to make the most of the building materials, to ensure the full functionality of the energy installations and to count on beautiful volumes. Expert advice is welcome if you have any doubts about the potential of the property you wish to acquire.
In Paris, it is possible to have a good look around because the risk of a rental break is very low. Of course, it is preferable to call upon a real estate professional such as John-Taylor both in the buying process and in the renting of the apartment or house. His intervention will allow you to better evaluate the demands: solvency of potential tenants, duration of rental demands, etc.
An assured increase in value
By requesting a real estate agency specialising in this geographical area, you are sure to find a property that meets your expectations and that you can put back on the market later.
Moreover, there is almost no doubt that becoming an owner in Paris is profitable in the long term. Indeed, the capital has multiple assets that guarantee an attractive living environment over the decades. The built heritage, urban development, strategic location in Europe but also internationally contribute to the local real estate success. A possible resale should therefore take place without any particular difficulty. In other words, the agency will put its know-how at your disposal to evaluate the potential of your property in relation to the market and in particular compared to similar properties.
It must be admitted that the entrance fee is quite high, but Parisian real estate deserves it. Indeed, prices tend to rise year after year, making Paris one of the most expensive cities on the international real estate market. This trend is still going strong because despite the various crises, the capital of France remains one of the most sought-after cities.
Before considering a resale, you should of course put all the chances on your side. If you undertake regular renovation work, you will further increase your prospects of selling at a good price and the renovation budget for this purpose will remain fairly low. Energy-efficient renovation work is obviously to be preferred. At the same time, make sure you keep the property in excellent condition because the aesthetic side plays a major role in the heartstrokes. Also depersonalize the property: remove your personal memories, repaint it to create a more classic atmosphere that the next occupants can later bring back to their taste. Also check that all the facilities are up to standard to avoid heavy negotiations that could penalize the selling price.
The intervention of an agency is still required because the professionals will be able to identify the strong points of your property: its location, its historical value, its energy performance, its design … so many elements that will subsequently establish a fair and advantageous selling price.
Numerous financial aids
As previously noted, the purchase of a core area property requires a relatively large amount of funds. However, if you are going to invest, you might as well focus on prestige properties, as they have a higher value and are therefore excellent investments. One might think that these luxury houses, villas and apartments are for the wealthy, but they are not. Various measures are put in place to support investors.
For starters, you can turn to a zero interest rate loan or PTZ, which offers you the possibility of taking out an interest-free loan. Access to this offer is subject to conditions. For example, you have to buy a newly built property and there are income limits to be respected.
The City of Light also develops its own support, that is to say the PPL (Prêt Paris Logement) and the PPR (Prêt Parcours Résidentiel). These are complementary credits whose monthly repayment is spread over 15 years. They allow you to sensibly complete your personal contribution and a possible classic property loan.
The PPL is a 0% loan offered to first-time buyers planning to buy a main residence in the capital. Income limits range from €38,434 for single people to €100,967 for households with 5 people. This is a lump-sum loan as the amount you will be granted does not depend on the financing required but on the composition of your household: €24,200 for a single person and €39,600 for a household of 2 or more people.
The PPR is another 0% loan for tenants of social residences wishing to invest in private housing. The amount is also a lump sum. Allow €27,500 for a single person and potentially more than €80,000 if your tax household has 5 or more members.
The ALF (Allocation de Logement Familial) and ALS (Allocation de Logement Social) are reserved for modest families wishing to invest in a tense area. Older homes are the only ones eligible for these grants made available by the CAF (family allowance fund).
The tax exemption schemes are not to be outdone. For example, you can benefit from the Pinel law to reduce your taxes as an investor in Parisian rental properties. Combined with financial aid, this solution further simplifies access to Parisian real estate.
The capital offers many advantages to investors in the real estate market. Properties are accessible, profitability remains stable or even increasing, and resale prospects are practically guaranteed. Don’t forget to get in touch with a professional who will provide you with personalized advice throughout your project.