Paris has always been a popular city for real estate. The image of geranium laden balconies and dinky apartments accessed by twisting wooden stairs has often been a romantic ideal for a large number of tourists and expats.
But with Paris becoming the host for the Olympics in 2024, prices in both the rental and sales market are likely to see a considerable rise in the next few years. There has already been a boost to the city’s short-term rentals, despite the games being a good six years away, with prices being hiked up to almost 20 times the going rate for people booking ahead of time.
There will also be chances for Paris homeowners to make a killing when it comes to selling their homes as long as they don’t leave it to the last minute. With Paris prices experiencing unprecedented growth in 2017 – with all arrondissements experiencing a rise in prices to reach an average of around €8,500, per m2 – there will be a lot of landlords and homeowners who are rubbing their hands at the prospect of making some very large profits indeed.
Commenting on the Paris price rise phenomenon, French property expert Adrian Leeds who has spent more than 20 years specialising in real estate in France, said: “The election of new French president Emmanuel Macron coupled with the election of Donald Trump and Britain’s decision to leave the EU have all played a role in boosting property prices in Paris, contributing in particular to a strong showing by the foreign buyer. All areas of inner Paris are likely to rise, but add to that areas immediately adjacent to where the Olympic events will take place. This past year has seen an increase of about eight percent, but it's questionable if such a strong trend can continue. Interest rates, rates of exchange, the financial market, etc., all affect the price potentials.”
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But it’s not only apartment buildings that will benefit from the successful Paris Olympic bid. The regeneration of certain parts of Paris and the boost to business will also have a significant effect on the capital.
For instance, the Paris Pleyel project (pictured) is part of an urban renewal plan in Saint Denis – a northern area of Paris which houses the enormous sports stadium Stade de France which will be heavily used during the Olympics. The plan - part of the ‘Grand Paris Hub’ - involves renovating the iconic Tour Pleyel tour along with almost 75,000 square metres in the district. This will include building two high-class 40-storey hotels providing approximately 680 rooms, a multi-functional complex with 28,000 square metres of offices, 6,000 square metres of retail and restaurant facilities, and a conference and exhibition centre for up to 2,000 people.
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There will also be a new train system built called the Grand Paris Express to transport people to and from the Grand Paris Hub into the centre of Paris in under 15 minutes. And the new station, to be named, Saint-Denis Pleyel, is being designed by the architect Kengo Kuma, and will boast a vast atrium with areas such as a media library, digital services, a business centre and retail areas.
So with the boost to business and real estate in Paris, it seems that the City of Light will be beaming more than usual in the years leading up to 2024. If you need more information on real estate in Paris, or how to set up your business in France – or for issues relating to Accountancy in France, Immigration or Visas – please contact us directly by calling 0033 (0)1 53 57 49 10 or email us from our contact page and we’ll be happy to help.
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