Spotlight: Paris

Paris 2017
Confidence returns

25 September 2017, by Savills World Research

Paris is a top-tier world city that offers value on a global stage, and consumer confidence is building

Our combined Savills World City Ranking for connectedness, competitiveness, power and performance places Paris in third, after London and New York. But several years of more muted performance have left residential costs in the city significantly lower than its rivals.

However, with a new political regime, historically low interest rates and building consumer confidence, the residential market has now turned. Having bottomed out in 2014, prices increased by 5.8% in the year to May 2017. Prices in the 1st, 4th and 5th arrondissements have already exceeded their 2012 peak.

 

This recovery is being driven by domestic demand. Foreign buyers accounted for just 9% of the prime market in 2016 (sales above €1m), but we expect them to grow in importance. They already account for around half of buyers in the ultra-prime segment. The new government will bring clarity on legislation and a period of relative stability. This could encourage foreign buyers who have been waiting on the sidelines to act.

▼ A top-tier city, Paris is third on the Savills World City Ranking

 
Paris

Summary

Market momentum is building. Prices increased 5.8% in the year to May 2017

Foreign purchasers account for just 9% of the prime market, down from 14% in 2008

A Macron presidency is positive for the market. A pro-business stance could buoy economic growth

The Paris region benefits from a diverse economic base that generates 31% of France’s total GDP

The capital is a world city that offers value. Prime Paris prices are 32% below those of prime London


Articles from Spotlight: Paris – 2017

Paris: a global ranking

25 September 2017

Paris: a global ranking

Alongside traditional assets of heritage and culture, Paris’s commercial environment makes it a top-tier global city

Momentum builds for prime

25 September 2017

Momentum builds for prime

Confidence is returning, with the election outcome bringing stability to the residential market

Prime arrondissement trends

25 September 2017

Prime arrondissement trends

Market intelligence on price growth and residential values in the capital’s prime arrondissements

Paris outlook

25 September 2017

Paris outlook

The recovery is being driven by domestic demand, though we expect foreign buyers to grow in importance

 
 

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Key contacts

Yolande Barnes

Yolande Barnes

Director
World Research

Savills Margaret Street

+44 (0) 20 7409 8899

 

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883

 

Hugo Thistlethwayte

Hugo Thistlethwayte

Head of
International Residential (Operations)

Savills Margaret Street

+44 (0) 20 7409 8876