Paris is a dynamic city where the real estate market is very active. Buying a property in the capital is always a safe bet, whether to live or invest. But to hope to make a good deal, it is better to be accompanied by a professional. So, without further ado, let’s dive into this blog and learn some of the best reasons to buy a home in Paris.
1. Paris is a safe bet in terms of real estate assets
As you may have noticed, when prices drop in Paris, they don’t drop much. Even after significant crises such as the 2008 financial crisis or the Covid crisis, which could lead one to believe that prices would collapse, the drop has always been limited. But why do prices never fall in Paris? There are two reasons for this.
First of all, the Paris market is not a market of speculators. People who buy in Paris mainly want to live there as a primary residence or have a pied à terre, or house their children and keep the property to donate it later.
Even if the proportion of pure investors is not negligible in Paris, it remains a minority. The demand is very strong because the number of housing units in Paris-Intramuros remains limited. The Paris labor pool is one of the most active in France. The city of Paris, therefore, attracts a very large number of people who need to find housing.
Since these jobs are often located in Paris, and the city is quite small, people who do not want to spend too much time on transportation prefer to live there and not move far from their place of work. Obviously, in addition to this first factor, there are many leisure activities offered by the city (theaters, cinemas, restaurants of all kinds, museums…) which make it an extremely sought-after place to live and where the demand for housing is constantly increasing.
2. A secure deposit for your future real estate acquisitions
In particular, when you are a first-time buyer, and you want to become a homeowner in Paris, making your first purchase of a primary residence is the best way to build up capital to expand later. Indeed, instead of paying rent at a loss, thanks to this first acquisition and by paying back a loan instead of rent, you will build up a capital that will be useful for future acquisitions.
This contribution will be of great use to you both to negotiate with a future seller during your second acquisition and negotiate the rate of a future loan with your bank. By remaining a tenant, especially if you remain one for many years, you will accumulate many obstacles to the acquisition. Indeed, you will only be able to count on your savings for many years to hope to have enough money for your purchase.
The second problem with staying a tenant for many years is that you will potentially start a family. The more you grow, the more difficult it will be for you to buy, because the property you want will be bigger and bigger and therefore more expensive. This is how we meet today people with extremely high incomes but who, having always rented and have had 3 or 4 children, are unable to access property in Paris.
This is also the reason why some families prefer to leave Paris even if they feel good there. Therefore, we can only encourage you to become a homeowner as early as possible, if you can, to build up a deposit for your future acquisitions.
3. One of the most buoyant real estate markets in the world
Paris is one of the most attractive capitals in Europe and even in the world. Although travel to Paris has become more complicated due to the Covid crisis, Paris remains a major meeting place for global business. Thanks to this prime location, Paris will always have to accommodate the thousands of businessmen and women coming to the capital for a few days and not just in hotels.
More and more people coming to Paris for work prefer to have a pied-à-terre rather than staying in a hotel or an Airbnb. This trend should increase in the next few years. Former Parisians buy a property in the region hoping to telecommute when their company only offers them 2 days of real telecommuting. Secondly, Paris still appeals to the ultra-rich by placing itself in third place on the podium after London and New York in 2020.
This global attractiveness increases the demand for property in Paris, contributes to the rise in prices, and limits their fall. Thus, becoming a homeowner in Paris allows you, depending on the quality of your product, to possibly resell it one day at a price higher than its market price, which is not necessarily the case in other cities that are less attractive to the world’s wealthiest people.
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