NEW YORK, July 12, 2018 /PRNewswire/ -- WIRE Consulting, an independent company specialized exclusively in International Real Estate services, says real estate property value in Paris, France will reach new records in 2018 as a result of the strong demand from foreign investors.
Property values in the French capital have remained stable since 2016 as a consequence of political issues and an overvalued market. However, there has been a recent rapid increase in the House Price Index following the election of President Macron in 2017 and the effects of Brexit moving international interest from London to other European cities like Paris. This is also the case for Middle East investors leaving Singapore and Hong Kong to buy in Paris.
"We predict property value to break records by the end of 2018 due to interest rates at historical lows, expected implementation of lower taxes on capital and removal of Paris rental caps", says Angelo Cinel, CEO of WIRE Consulting. "The French city offers relevant appreciation margins after what was a 5-year-long stand-by. Property prices have risen more than 8% since 2017 and 2018 values are expected to keep rising."
The heightened demand from foreign investors has substantially increased the number of real estate transactions which in 2017 was over 10,000. Around 30% included high-value properties (with an average price of over $ 1,000/sq. ft.) mainly from international buyers.
Paris is predicted to become one of the leading European countries for the American real estate investor looking for a profitable long-term capital gain. The low interest rates and current strong US dollar to Euro exchange rate has boosted purchases from the U.S. by 7.5%.
For Americans looking to retire abroad, Paris offers an ideal opportunity as it is considered a top European city in terms of cuisine, fashion and architecture.
Prices and annual growth differ significantly between different arrondissements with higher values in the 6th, 4th, 1st and 7th arrondissements where average prices exceed $1,226/sq. ft.
If international investors continue to invest in the French capital, average prices per square foot for luxury properties could increase 50% of the current value.
SOURCE WIRE Consulting