Paris is the fifth most expensive major city to buy an apartment, according to a survey by an international property consultancy, however it remains more affordable than London and cheap euro mortgages make it especially appealing to investors in 2016.
The latest CBRE Residential Global Living report states that the average price of an apartment in the Paris region is $351,981 or $541 per square foot, putting it one place behind London, with an average price of $550,632 or $734 per square foot. These figures a way behind the most expensive city, Hong Kong, with averages of $840,230 and $1,500 per square foot.
Paris prices remain very attractive when compared with London. Fixed rate French mortgages from as little as 1.7 per cent with 80 per cent loan to value and 20-year terms are making the French city even more appealing.
Local agents report that the most sought-after Paris properties fall into three categories, namely two or three-bedroom apartments with two bathrooms, four or five bedroom homes or family homes within 25 kilometres of the city centre.
The most coveted areas include: the north of the 16th arrondissement, next to avenues Foch and Victor Hugo, and along the Ranelagh gardens; the 8th arrondissement and its golden triangle, as well as the 8th and the 17th arrondissements by Monceau Park; and property in the 7th or 16th arrondissements that offer views of the Eiffel Tower.
Property sales increased throughout last year and, according to the Paris-Ile-de-France Notaires, saw an unprecedented level of activity in September and November 2015 when property sales were up 42 per cent on the same period in 2014. This was an overall increase of 21 per cent when compared with the average over the last decade. Prices are expected to continue to rise steadily in 2017.