Paris continues to attract the wealthy (Junot Fine Properties/Knight Frank)
Junot Fine Propertiesspecialist in exceptional real estate in Paris and Knight Frank have just unveiled the 17th edition of the “Wealth Report”, a study on the evolution, investments, attitudes and choices of the ultra-wealthy in the world (UHNWI: “Ultra High-NetWorth Individuals”).
According to this study, of the 100 markets tracked by the Prime International Residential Index (PIRI 100), which analyzes changes in the prices of exceptional properties in 100 key cities, Paris is in 39th place in this world ranking. In the French capital, the prices of exceptional goods increased by 6.2% in 2022, a more marked increase than the world average which reached 5.2%. “In Paris, $1 million buys 43 m² of premium space (i.e. a price per m² of $23,256), which places the city more expensive than Sydney, but less expensive than Los Angeles”, specifies the study. .
The ultra-wealthy Americans, Chinese and the Middle East are flocking
Paris is a “destination of choice for UHNWIs”, according to Junot Fine Properties and Knight Frank. Unlike other world capitals, the City of Light saw its sales of exceptional properties increase in 2022 with 23 sales over $10 million and six over $25 million.
The attraction for luxury properties is undeniable in Paris with an ever stronger demand, and prices per m² well above the average for exceptional and rare properties, such as a private mansion with a 400 m² garden on the left bank sold for €17m (i.e. €42,500/m²) by Junot Fine Properties|Knight Frank”, report the two players.
“In addition to the strong presence of American buyers since 2022, Chinese and Middle Eastern buyers have been flocking to the market for exceptional properties in Paris since the beginning of the year”, relates Alison Ashby, Director Junot Fine Properties|Knight Frank. “These customers are looking for a safe haven in a strategic location in Europe while enjoying the cultural activities that Paris has to offer. Given the increase in renovation costs and delays, foreign buyers are targeting turnkey products, “turn key apartments”, and are ready to pay a premium price for something exceptional. »
Exceptional residential real estate, a safe haven
Also according to the study, UHNWIs around the world now view residential real estate as the safest asset class, a title usually accorded to gold. Thus, 15% of them plan to buy a residence in 2023, mostly for investment (45%). The “Wealth Report” predicts in particular that in 2023, France will be among the top 5 countries where these ultra-wealthy individuals will be most likely to invest “due to lifestyle, political stability, diversification currencies and the high level of transparency. »
“Given the uncertain international context and the record losses suffered by other financial assets, the proven stability and sustainability of the Paris real estate market reassures investors,” emphasizes Alison Ashby. “Cash buyers are shielded from the concerns of rising interest rates and buying in Paris allows them to stay globally mobile and enjoy the Parisian lifestyle. »
*The complete study of Junot Fine Properties and Knight Frank attached.