The Relationship Of Investors With Paris Real Estate
Paris has always been at the top of every real estate investors' list this year when it comes to cross-border real estate investments. Strong demand from Asia, as well as European investments, has always helped it perform well against traditional markets like New York and London, according to The Investor.
Cross-border buyers accounted for $6.5 billion of transactions invested into the French capital between the months of January and June.
It's hard not to fall in love with Parisian properties. A good property to highlight is a Seine "houseboat" that's gone for sale, anchored near attractions like the Tuileries Garden and the Louvre.
It is also historic, having been built in 1920 and used to transport sand around France, according to The New York Times. It currently houses about 2,000 feet of living space, with provisions for two studios and a two-bedroom apartment.
Paris is also home to a neighborhood blessed with a postcard view of the surroundings. The Saint-Thomas-d'Aquin neighborhood is a perfect example. According to Mansion Global, this suburb has been "synonymous with royalty" and the avant-garde movement. It is especially irresistible for its Haussmannian apartment buildings and secret garden enclaves, tucked away in a similar fashion as some mansions, which had been built by historical nobility.
Investors from Asia-particularly those from South Korea-has been cited as the top investors in French property. Hana Financial was singled out for their purchase of the Cristalia office building, located in the Rueil-Malmaison district west of Paris. The deal went for €71 million and was completed with help from JR AMC, a REIT manager based in Seoul.
The largest deal was still from a European client. Investment manager Swiss Life went into the market for a portfolio of 28 offices, bought with a budget of more than €1.7 billion. Pranave Sethuraman, a member of JLL's global capital markets research team, said that the appetite for properties in the city was similar to how global institutional investors are on the lookout for portfolio expansion opportunities in gateway cities like Paris.
London was one gateway city that enjoyed dominance over its European counterparts. Brexit happened, and the uncertainty of that process of secession away from the European Union have turned some investors off from investing in the city. Global investors have since found similar interesting opportunities in the French capital, where they can enjoy deploying capital on a similar scale.
Sethuraman also said that investors, who usually enjoyed core opportunities, may begin to look beyond central Paris and into other European cities in the coming months.