Many observers underline the importance of foreigners in the Paris real estate market. Some highlighting their role in price formation and the functioning of the property market. If foreigners can occasionally perform a key role in some very narrow market segments in the Capital, especially for very large property and very high-end, their presence must be qualified and put into perspective. The latest monthly report of the Chamber of Notaries Paris Ile-de-France brings some interesting insights.
About 8% of Parisian apartments are bought by foreigners. The profiles of these buyers are varied. Buyers born abroad, resident in France, rather buy in Paris. While they represented around 4% of buyers from 1996 to 2011, they were 5.5% in 2014. However non-resident aliens who purchase from abroad saw their numbers decline. They accounted for 4% of sales in 2008/2009 and are now less than 3%.
Prices sometimes are still too high – Investors need to learn how to look for pieces of proterty put on the market at reasonable prices . The sharp rise in prices in 2010 appears to have discouraged many foreigners to invest in Paris. And small price declines observed since 3 years have clearly not been sufficient for lure them back. However the decline of the euro, if allowed to continue, could have a trigger effect thanks to a favorable exchange rate.
We can identify indeed the emergence of new trends in the French real estate market of potential investors should be aware of.
The geographic origins of foreign buyers vary over time. The Portuguese and Chinese were more numerous in the late 90s.
English and Americans accounted for over 10% of foreign buyers in the early 2000. Finally, German buyers is stable over time.
There are plenty of opportunities that are neither sought after nor seized.