Internationally renowned Paris is the capital city of France and also its leading political and business centre. One of the world’s most elegant and romantic cities, Paris is one of Europe’s key cultural destinations but also the engine of French business and home to more
than 600 Michelin starred restaurants.
The Métropole du Grand Paris, which includes the City of Paris and its closest suburbs, came into existence on January 1, 2016. The emergence of the new administrative authority considerably strengthens the city’s ability to attract international investors, allaying concerns about the size of the city and its scope to expand.
Major infrastructure improvements are underway to enable easy travel across the larger city area, notably the Grand Paris Express, which will connect 68 stations via four new circular rail lines, and the extension of two other lines, over a total length of 200 kilometers. The impact of the Grand Paris Express on residential property markets outside the city centre will be significant, because it will open up commuting opportunities and build on the momentum that already exists in the Paris housing market.
Following three years of house price declines as the economy struggled to recover from the last downturn, house price growth in Paris turned positive again in 2016. Growth accelerated into 2017 with growth of 9.1% over the year and continued into 2018, albeit slightly lower at 6.3% year-on-year in Q3 2018. Increasing demand for newbuild property has been boosted by record low interest rates and an extension of the Pinel law, which is a tax incentive to encourage buy-to-let investment in new build homes. There has been an overall surge in housing completions to 72,000, which is 62% above the 10-year average.
Looking further to the future, the 2024 summer Olympics due to be hosted in Paris will have a positive effect on tourism, employment and economic growth, further fuelling the housing market.