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Investing in Capital Cities: Paris

The Louvre, the Arc de Triomphe and the Eiffel Tower are all significant symbols of Paris, as synonymous with the city as lovers strolling along the Champs-Élysées holding hands. But is this romantic, elegant city ‘trés chic' or far too clique?

Eiffel Tower - photo by imurdock

Fast Facts

Country: France

Population: 2,167,994

Area: 86.9 km²

Currency: € Euro

Official Language: French

Telephone Code: +33 1

Location Information

Situated on the River Seine in Northern France, at the heart of the Île-de-France region, Paris is the country's largest and most populous city.

With the fifth largest city economy in the world, Paris is the business pulse of France, accounting for more than a quarter of the national GDP.

Paris is known as La Ville-lumiére (The City of Light), a name it owes both to its fame as a centre of education, science and arts and as a reference to its early adoption of street lighting.

Having a colourful and well documented past, Paris was the centre stage for the French Revolution in the 18^th century, recovered from cholera in the 19^th century and survived two world wars in the 20^th century.

What's the Attraction?

With a history of revolts, diseases and wars, modern day Paris is popular and extremely vibrant, with Parisians very proud of their coveted city, which is visited by more tourists than any other destination in the world.

The city is renowned for its museums and monuments with the Louvre one of the largest and most famous museums, housing many works of art, including the Mona Lisa and the Venus de Milo statue.

Disneyland Resort Paris is another major tourist attraction not only for visitors to Paris, but to Europe as well, with an estimated 14.5 million visiting it in 2007.

The city is renowned for its nightlife, with a stream of bars, clubs and numerous cafes peppering the streets. There are also theatres, opera houses and the Moulin Rouge cancan shows, reliving the 1920's when Paris was the place to be for cabaret entertainment.

Paris Architecture

Paris has many famous and historic structures, with the iconic Eiffel Tower being the most recognised and visited attraction in the city. Named after its designer, engineer Gustave Eiffel, the Eiffel Tower is the tallest building in Paris. The structure took two years to build and after it was completed in 1889, it was criticised heavily by the public who perceived it as an eyesore.

The tower had an original permit to stand for 20 years, after which the City of Paris had planned to tear it down but as the tower became more popular and valuable, it was allowed to remain after its permits expiration date.

The Arc de Triomphe is another famous symbol of Paris and honours those who fought for France, particularly during the Napoleonic Wars. On the inside and the top of the arc there is a list of generals and the wars that France fought.

The Notre Dame de Paris is another popular piece of Paris. The cathedral is widely considered one of the finest examples of French Gothic architecture in the world. It is still used as a Roman Catholic cathedral and is the seat of the Archbishop of Paris. The name Notre Dame means "Our Lady" in French.

Infrastructure & Investment

Recent research by Global Property Guide indicated that this year, per sq. m. prices in Paris are around €8,260 to €11,544, making it one of the most expensive cities in the world to buy property in.

Apartment prices average €10,485 per sq. m. and a 120 sq. m. apartment now costs €10,014 per sq. m. compared to €6,667 per sq. m. a year ago. Apartments in Paris that are 200 sq. m. and above are the most expensive, starting at around €13,087 per sq. m.

Using figures from the National Institute of Statistics and Economic Studies (INSEE) - apartment prices in Paris from 2000 to 2005 rose by 76.4%, which was lower than the 86% recorded for the entire country.

As an extremely business orientated city, the public transport in Paris is first class. It has the world renowned Métro and is also serviced by a modern motorway and freeway system, a high-speed train network and two major airports.

The Paris Property Market

Entry level - Le Domaine du Val de Seine is an outstanding investment leaseback development that faces the river Seine on the outskirts of Paris. Facilities will include a car park, indoor swimming pool and fitness centre. The accommodation is fully furnished and an initial 11 year rental guarantee is offered with rentals at 5.45% for 2 beds and 5.48% for the studios. Prices start from €77,000

Mainstream - A lovely ground floor, refurbished, 2-bedroom apartment, located in the 18th municipal borough of Paris. Close to local amenities this spacious flat comes with a fully fitted kitchen and bathroom. Price €365,000.

Top of the range - This very elegant and spacious apartment has stunning views of the Eiffel Tower from the living room and master bedroom. With 2 additional bedrooms, 2 bathrooms, a basement and a grand courtyard, this luxurious property is priced at €3,200,000.

Rental Potential

Rental yields in Paris have slightly dropped as rents have decreased, accompanied by a rise in house prices.

Larger apartments have lower yields, recently dropping to around 3.42%, while 30 sq. m. flats have yields of about 4.37%. Monthly rents per sq. m. are at an average of €33.6, with apartments over 200 sq. m. generating rents at around €37.33 per sq. m.

Conclusion

Truly one of the best cities in the world, Paris is stylish, seductive and completely mesmerizing. A place for fashion, art and culture, this unique capital city is a liaison for lovers and has an inexplicable quality about it, or as the Parisians would say... a certain je-ne-sais-quoi.

 

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