Continued demand

Real estate remains a desirable asset in today’s economic climate, and Paris has re-emerged as one of the most attractive cities in Europe in which to invest. President Macron’s agenda of reform, while encountering some hurdles at home, has boosted Paris’s international profile, and the prime residential market is undergoing a period of catch-up with other world cities.

Capital flow

With a small historic core, property in central Paris is finite, viewed by many as a safe long-term investment and store of wealth. Lower for longer – even negative – interest rates mean the flow of money into the capital’s real estate is unlikely to decrease any time soon. The completion of some record prime residential deals in the Côte d’Azur highlights the volume of capital targeting French real estate.

Olympic appeal

While international buyers are an important part of the market, Paris remains predominantly a domestic one. Looking ahead, major infrastructure projects such as Grand Paris and the Olympic Games in 2024 are likely to have a positive effect on the market, particularly in outer Paris.

Expanding horizons

We expect the period of price catch-up to continue, but for price growth to moderate further in the near term. As one lead indicator, the average time that prime property spends on the market has already risen. We also expect the geography of prime Paris to expand as demand moves further out from the land-constrained prime city core.

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