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Signs of property market recovery in Paris are not reflected everywhere

The French residential real estate market is a paradox. Low interest rates are driving a surge of sales, as high as the market has seen in nearly a decade, yet until recently prices remained depressed after several years of decline.

The most recent figures, compiled from notaries’ reporting, show that on average prices fell by 0.4 per cent in the second quarter of this year.

The region around Paris has seen modest but consistent price growth so far this year. The Côte d’Azur continues to boom, but the market is lacklustre across most of France’s recently renamed neighbouring sunbelt region of Occitanie, stretching from the Rhône Valley to Toulouse.

Since the beginning of the year, residential property activity in the capital region has seen a resurgence, according to some sources.
Prices vary considerably, from an average of €5,000 per square metre in the Paris suburbs to €3,500 in other cities, according to CBRE. There is no indication yet that the upturn has reached the economically depressed areas of northern and eastern France, where prices have continued to fall during the first half of the year. Neither has the patchy revival spread to the country’s underpopulated interior, where the biggest concentrations of empty homes are to be found. According to some sources, at the end of last year some 2.88m mostly privately owned houses and apartments were empty — 8.2 per cent of the country’s total housing stock. This represents an increase of nearly a million from 10 years earlier.

Across swaths of central France the proportion of vacant properties exceeds 10 per cent of the total. But the vacancy figures should not be overemphasised, pointing out that they are driven mostly by the continuing exodus from France’s small towns and villages to bigger cities, where demand has consequently been buoyed.
The upturn is particularly strong for new-build property. The construction has been boosted by government tax measures to encourage real estate investment, which is helping to remedy a shortage of accommodation in fast-growing areas.

Apart from the Paris region, this is strongest along the west coast and the Mediterranean, areas that are more economically dynamic and are seeing strong population growth.
The state of the commercial property market reflects the disproportionate weight of the Paris region in the national economy. Even major regional centres such as Lyon, Bordeaux and Marseille make up a relatively small part of the overall market, he notes.
The Paris region accounts for some 55m sq m of commercial property space and had a vacancy rate of just 6.5 per cent at the end of the third quarter, according to some sources.

Central Paris is faring better, with slight upward pressure on commercial rents as a result of a lower vacancy rate of about 4 per cent. This pressure is not yet feeding through into higher headline rents for clients. As the market improves, landlords are not having to offer the same enticements, such as rent holidays, as they did when rental prices were falling. Lack of availability of prime commercial space in the centre of Paris is prompting companies such as IT businesses to look at areas outside the more fashionable central business districts such as Étoile.

Projects from this area

LE COEUR des LOGES, France, Les Menuires

€198,000 - €615,000 1-4 bedrooms

The second phase of ski-in ski-in properties for sale in Les Menuires' Le Coeur des Loges are now available. Enjoying an unbeatable location and private on-site facilities these properties are the final phase to be available as part of this highly successful development.

Just like the original phase, these properties are located in one of the more traditional areas of Les Menuires, with more chalet-style buildings and convenient amenities nearby. The apartments, from one to four bedrooms and some with 'cabine' (bunk) rooms, are arranged across a series of beautiful chalet-style buildings.

They come with complete property and rental management which means owners receive rental income that is completely hassle-free.

Private onsite facilities include an indoor swimming pool, spa and children's nursery.

At an average price per sqm of €5,800 (including parking & furniture), the 4* properties at Le Coeur des Loges phase two offer a highly competitive way of purchasing high quality ski-in ski-out property in The 3 Valleys. 

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MONTE COAST VIEW, South of France, Monaco - Beausoleil

€230,000 - €840,000

Monte Coast View is an extremely rare collection of high specification apartments in Beausoleil overlooking Saint Roman and the famous Sporting Club Monaco.

Each apartment has been designed to maximize the views so that as many as possible have sea views and each has been designed to offer large exterior spaces which exploit the vistas and natural light.

In terms of facilities, owners will be able to use the wellness suit with outdoor heated swimming pool, solarium and pool house. It will also be possible to reserve this space for private functions and events. A private concierge will also be on hand to mange any and all day to day requirements.

Each property is being luxuriously appointed, some including features like private jaccuzis on terraces and all are being fitted out by an experienced interior designer with appliances and fixtures from known brands.

Inside, fitted kitchens will boast the latest in modern functional designs, while bathrooms will be fitted with hydro massage showers.

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