For the past few years, wealthy Chinese men have been scouring the globe with their seemingly unlimited cash fund. Starting from Asia to the U.S., to Latin America, and Africa, the trend is difficult to ignore as China positions itself as a rising global force. Less well known is their long-winded but growing footprint in Europe, particularly in Paris.
Gone are the days when Italians had their share of homes sold to foreign buyers in Paris as Chinese investors made their way to the top during the first three months of the year.
Data from the Notaries of Grand Paris show that Chinese buyers comprised over 14% of home purchases by both resident and non-resident foreigners in the French capital in the first quarter.
How is Paris Attracting More Investors?
Commenting on the data, Paris Property Group director Kathryn Brown said that the real estate sector of Paris benefits from the uncertainty brought by Brexit. She explained that while the London market is turning investors away, Paris is attracting most buyers in the region. This includes Chinese buyers who are currently active in diversifying their holdings.
Brown noted that Chinese buyers looking to buy properties in Paris are interested in residential flats, mainly in the Golden Triangle area, between Parc Monceau, Etoilethe and the river. This area, known as 8th arrondissement, is where luxury real estate Paris is thriving with many high-end properties under renovation to keep up with modern standards.
The 13th arrondissement, which is home to the inmost number of Chinese nationals in Paris, is another popular area. The winding historic streets and Medieval buildings of the 3rd arrondissement are also drawing Chinese buyers.
Paris Continues to Provide Luxury Real Estate to French Market
According to annual research by Belles Demeures, luxury real estate, Paris continues to lead the French market over the past three years. While prices of luxury real estate Paris remain high, it was noted that they are rising at a slower pace than other cities in France.
Posh properties in Paris sell at about €15,000 per square meter on average.
A recent study by Knight Frank also highlighted the increasing activity of Chinese buyers in the French capital, which helps boost the performance of Paris real estate sector as a whole.
Data from the real estate agency show that Paris has hit over 17.3% growth over the last two years. It expects the growth to increase this year, with a 6% rise.
Why are Chinese Investors Considering Paris in the Real Estate Industry
Knight Frank partner Roddy Aris said that the trend with regards the Chinese buyers is part of a general surge which started to gain traction during mid-2017. He noted that factors that helped boost Paris market performance include the election of President Emmanuel Macron and his pro-business policies, as well as the burgeoning commercial property market.
According to Aris, local buyers drove the surge initially and then followed by French expatriates who had moved to the city in the wake of the 2012 wealth tax. Moreover, overseas buyers, particularly Asians who jumped into the market more recently, are driving price increases.
The expert explained that the relative value of Paris compared with other global cities, along with cheap finance, are pushing many international investors to expand their footprint in the city.