Paris Prices, Côte d’Azur Castles and India Investments
Sunset on the Côte d’Azur
(FOR SUBSCRIBERS ONLY)
March 1, 2007
Bonjour French Property Insider Subscriber,
I returned this morning from 12 days in Incredible India, traveling as assistant and chaperone to my daughter who was hired to photograph two traditional Hindu weddings — a Gujarati Brahmin (highest caste) brother and sister, each marrying into families from South India, one wedding following another. We had the opportunity also to visit the "Golden Triangle": the cities of Delhi, Agra (Taj Mahal) and Jaipur.
Our hosts were residents of a suburb of New Delhi and Jaipur. Both talked about the rising increases in the values of their properties. Today we provide a small glimpse at how India compares with France from a lifestyle and investment perspective.
More importantly, the latest property prices for Paris were recently reported by the Chambre de Notaires. Paris is still on the rise, but prices are slowing down and leveling…only slightly! Still, this makes it a good time to purchase before the next boom, as properties continue to sell quickly at high rates.
On a bit of a fantasy note (for most of us), we discovered some of the world’s most expensive properties right at our back door…on the Côte d’Azur. If you have 50 million euros burning a hole in your pocket, you’re in luck…we can satisfy your desire to live a royal life. Have a look at this one and a few others we found to send you dreaming.
Editor, French Property Insider
P.S. And don’t forget…between now and March 11th, you have the opportunity to participate in a conference call and/or group consultation to learn the "Seven Steps to Your Own Pied-à-Terre" — a Special Offer from FPI. Scroll down to read more…
Volume V, Issue 8, March 1, 2007
In this issue:
* Paris Property Price Increase Slowing Down
* Deciphering the Price of Paris Property
* Adventure in India
* Most Expensive Properties Around the World
* 65 Million Dollar Home
* Property Investors Love France
* Seven Steps to Your Own Pied-à-Terre – Limited Time Offer
* FPI Property Consultation, Search and Relocation Solutions
* Today’s Currency Update from Moneycorp
* Next Parler Paris Après-Midi: March 13, 2007
* Hot Property Picks: Worth More Than a Million on the Côte d’Azur
* On the Auction Block: March 27, 2007
* Leasebacks: Residence Virginia, France, Mediterranean Coast, Grasse
* Managing Your FPI Subscription
* Classified Advertising: Parler Paris Apartments
Paris Property Prices: On a Slower Rise
By Adrian Leeds
For the first time since 2002, the price of resale apartments in Paris rose just under 10% — an estimated 9.9% average for the city, at a square meter price of 5,675€, based on reported figures by the Chambre de Notaires for 3rd quarter 2005 to 3rd quarter 2006. Appreciation for the city rose 2.9% for the quarter and over a period of 5 years, on the average 75.8%.
Even so, half the districts appreciated more than 10%, with the 6th arrondissement still in the lead for most expensive area with an average square meter price of 8,527€, having increased 5.7% for the quarter, 9.9% for the year and 61.8% over the last 5 years. The district is also still the most rentable area of the city, but with cost of entry so high, returns may not be as lucrative as other districts.
The 19th arrondissement continues to lead as the least expensive area with an average square meter price of 4,498€, but the highest appreciating district having increased 4.4% for the quarter, 13.9% for the year and 100.9% over the last 5 years. While for investment purposes, the property is sure to yield appreciation, the 19th will not yield good rental revenues and therefore in the long run, may not be as profitable as other districts.
Consider the following chart…
|Price per M2||Annual Evolution|
For short-term rental returns, a winning combination is a district where moderately high occupancy rates are achievable (central Paris, districts 1 through 8), low cost of entry and above average appreciation. The arrondissements to consider would be…2nd (Montorgueil), 3rd (Haut Marais) and 8th (Champs Elysées). One exception is the Montmartre quarter of the18th arrondissement, where short term rentals can be achieved ever since the area became popular as a result of the film "Amélie Pulain."
Long term rental yields can do well in outer districts with the same winning combination, such as certain areas of the 9th, 10th, 12th, 13th and 14th.
The Chambre de Notaires provides an interactive chart found at http://www.paris.notaires.fr/prix/info_prix.php. If you find it too difficult to utilize and make comparisons, download a pdf document outlining the figures at http://www.adrianleeds.com/frenchproperty/insider/members/content/Paris_Prices_3rd_Qtr_2006.pdf
How to Understand the Reported Property Prices
By Adrian Leeds
The property price figures for Paris and the Paris region (Ile-de-France) are reported quarterly by the INSEE, the French National Institute for Statistics and Economic Studies (http://www.insee.fr/en/home/home_page.asp). Just this month, the statistics were released for the end of third quarter 2006, almost five months after the closing of the month. Given that the properties to which the statistics relate were purchased about three months earlier than the deeds were recorded (the time between the signing of the Promesse/Compromis de Vente and the Acte de Vente, you can assume then, that these figures are already out of date by eight months.
In light of that fact, now let’s look at how it affects the market values you will experience when you set out to look at properties. This report averages Paris per square meter prices at 5,675€ with an annual appreciation of 9.9%. Eight months is 2/3 of the year. If you were to visit properties today, you can already expect the prices to be about 6.6% higher (2/3 of 9.9%), or 6,050€ per square meter.
I’m no mathematician nor economic analyst, and I’m sure among you there are readers who can correct my rather plebeian theory, but we know for a fact, that the actual market values are considerably higher than those the Chambre de Notaires report. Other factors that contribute to this variance are: 1) the reduction in the purchase price, which can be attributed to direct payments made to the sales agent to help reduce notaire fees, 2) the listing of inventory of fixed furniture such as built-ins and appliances and 3)the under-the-table cash transactions, which are illegal but do occur. Finally, the figures are diluted as they are reported by an arrondissement in its entirety and do not account for differences by neig
So, when setting out to find your perfect Paris apartment, keep in mind that what really counts are the asking prices of comparable properties.
I Wouldn’t Trade Paris for All the Chai Tea in India…
By Adrian Leeds
It was our first time in India and was, what I would call, a life-changing experience. Over the course of the 12-day journey, I kept readers of Parler Paris informed and my daughter, Erica, took about 4000 photos, some of which are already viewable at her site http://www.flickr.com/photos/ericasimone. Soon I will post a full article, but until then, if you’d like to read the Parler Paris newsletters, simply visit any or all of these four issues:
While I was there, I had to chance to discuss the booming Indian economy, the growing middle class and the increase in property values. India is in competition with China as both economies are rapidly expanding and maturing, the wealthy middle classes growing rapidly and big business booming in cities such as Bangalore and Mumbai (Bombay), with Goa along the coast as a prime location. The sheer number of educated technology-savvy workers and English speaking workforce will help incomes increase and asset prices grow – it’s only just starting – but in 20 years time it is expected prices in the most popular areas would not be similar to Europe’s and property prices in central city areas will likely reach London prices in the next 10-20 years or earlier.
If what you’re after is purely investment, then maybe India is an investment to consider, however, there are no words to describe how appreciative we were to be home in Paris, where standard of living is high, quality of life tops, esthetics are key and beauty is at every turn. I wouldn’t trade it for all the Chai tea in India.
World’s Most Expensive Homes 2007
By Matt Woolsey for Forbes.com
Along Australia’s Gold Coast and across the French Riviera, they sit above the beach offering extraordinary views of the sea. In the U.K. they are palaces that humble the Queen’s Belgravia mansions.
Others range from landed estates throughout continental Europe to nature preserves in Zambia.
These are some of the world’s most expensive properties, and the prices are as unique as the homes. Saudi Prince Bandar bin Sultan’s Aspen ski lodge lists for $135 million, while 6,000 miles away, a 64-room Istanbul waterfront mansion asks $100 million…
To read the full article visit http://www.forbes.com/2007/02/21/homes-expensive-world-forbeslife-cx_mw_0222mostexpensivehomes.html
Cote d’Azur, France
Nestled into the landscape about the port of Saint Jean, views from the main house and three guest villas include the ocean, Beaulieu and Monaco.
In total there are 19 bedrooms, 21 bathrooms and 10 reception rooms with ornate moldings, French paneled interiors and chandeliers.
Gardens, ridgeline patios and an infinity pool take advantage of the property’s elevation on the mountainside.
France Looking Increasingly Attractive
From Assetz Property News Service
The south of France has traditionally been a hotspot for UK buyers looking to invest in overseas rental property. It has also been popular with retirees and professionals looking for a holiday home. However, it seems investors have widened their focus and are now snapping up property all ov
According to Pierre Williams of the Inside Track Group, a company which conducts workshops for potential property investors, "Every region now has Brit expats and holiday home owners." Different regions hold different attractions and there are noticeable trends in who buys where, according to Mr. Williams.
He says that the younger purchaser is attracted to the nightlife of the big cities such as Paris, with plenty of distractions on offer in the form of bars, restaurants and nightclubs. On the other hand, the older investor is more attracted to quieter and more rural areas. Many continue to opt for properties in the Provence area, famously used as the setting for the Peter Mayle book and subsequent BBC television series A Year in Provence.
France apparently offers the best quality of life in the world. That was the conclusion reached by International Living magazine when compiling their annual ‘quality of life index’ for 2007. France also came top in last year’s index, so what is it about the country that made it the magazine’s first choice two years in a row?
According to International Living, France offers a reasonably low cost of living compared to many other Western countries and an "impressive" range of properties available around the £50,000 region. The nation’s infrastructure is also rated highly, with the transport system coming in for particular praise. High-speed TGV trains apparently cover long distances in less than half the time they would take to traverse by car and many of the major cities have comprehensive – and integrated – bus and rail systems.
Another thing that may make a French property attractive to the prospective buy-to-let investor is the increase in tourism that has followed the introduction of a plethora of cheap air links between Britain and France. According to the Daily Telegraph, surveys have shown that the prices of properties within easy reach of a budget airline destination have gone up twice as fast as similarly attractive holiday spots which are harder and more expensive to reach.
One potential downside to living in France is the very high rate of income tax. However, this would only affect people living full-time in the country and would not have any bearing on investors who were simply building a portfolio of properties for the rental market.
Learn the "Seven Steps to Your Own Pied-à-Terre"
A Special Offer from FPI
Between now and March 11, 2007, when you renew your current subscription for just one more year ($49.50 — 99 cents an issue), we’re going to make it possible for you to get good advice absolutely free!
Learn the "Seven Steps to Your Own Pied-à-Terre" from me and the French Property Consultation team live and in person!…
First, anyone from anywhere in the world can participate in our FREE One Hour CONFERENCE CALL on Sunday, March 11, 2007 at 7 p.m. Paris Time (1 p.m. Eastern Time, 11 a.m. Pacific Time). You’ll be given a Toll Free U.S. or Direct Dial access number so you won’t be calling long distance to France!…but we’ll all be there with you to give you an introduction to the Seven Steps to Your Own Pied-à-Terre, then you’ll have an opportunity to ask questions about living, investing, or purchasing property in Paris or France. This is your chance from wherever you live to learn more about how to make your dream to own a property of your own in France come true!
Second, if you’re here in Paris, then you will be one of the fortunate few to join us for a one-and-one-half hour GROUP CONSULTATION with me and the French Property Consultation Team on Thursday, March 22, 2007 at 6:30 p.m. at La Pierre du Marais, Paris, France. Live and in person, we’ll give you an introduction to the Seven Steps to Your Own Pied-à-Terre then as with the conference call, you’ll have an opportunity to ask our team of experts all your questions about living, investing or purchasing property in Paris or France.
Right now, and only until March 11th, the opportunity is yours. Take my advice. Don’t delay.
Click here to add one or more years!
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TODAY’S CURRENCY UPDATE
Visit the FPI Web site and click on the link on the left panel or click here for Currency Convertor by Moneycorp Global Money Services: http://www.adrianleeds.com/frenchproperty/insider/moneycorpconvertor.html
for up to the minute conversions of all major currencies.
Compare currency values easily and quickly by visiting:
The charts below are updated every ten seconds.
The prices shown are "inter bank" exchange rates and are not the rates that you will be offered by Moneycorp. Your rate will be determined by the amount of currency that you are buying. Please speak with an Moneycorp dealer or your consultant for a live quotation.
Parler Paris Après-Midi
NEXT MEETING: March 13, 2007 AND EVERY SECOND TUESDAY OF THE MONTH, 3 p.m. to 5 p.m.
This is your opportunity to meet every month, often with local
professionals who can answer your Working and Living in France questions. You are invited to come for drinks and share your questions and comments about what it takes to create a life here, own property and enjoy what France has to offer. It is also an opportunity to network with other Parler Paris readers.
Upstairs at La Pierre du Marais
96, rue des Archives at the corner of rue de Bretagne, 75003 Paris
Métro Lines 9, 3 et 11, stations Temple, République or Arts et Métiers
HOT PROPERTY PICKS: Worth More Than a Million on the Côte d’Azur
Each week French Property Insider features a range of properties which we believe are on the market at the time of writing. These properties are featured in order to give readers a sample of what is currently available and a working example of prices being asked in various regions of France and districts of Paris.
As we are not a real estate agency. These properties do not constitute a sales listing. For those readers seriously interested in finding property in Paris or France, you can retain our services to do the whole thing for you. For more information, visit http://www.adrianleeds.com/frenchproperty/consultation
*** Le Rayol Canadel, South Of France, approx. 350m²
A superb property with exceptional views of the sea. The ground floor comprises a living room with fireplace, dining room, kitchen that opens onto a covered terrace, two bedrooms both with en suite bathrooms, dressing room, laundry room and boiler room. The master bedroom and one other bedroom also open onto the terrace. There is approx. 0.75 hectares of land with a lovely raised infinity swimming pool and a tennis court
Asking Price: 5,325,000 € + Finder’s Fee
*** Cap Martin, Cote D’Azur, Beautiful Villa, approx. 400m²
A beautiful villa located in peaceful grounds only minutes from Monaco. 3 reception rooms, one with open fireplace, 5 bedrooms, 4 bathrooms, terraces, sauna and heated pool. Fully grown landscaped garden of 3000m² with a lawn, old pine trees, and various Mediterranean plants.
Asking Price: 6,500,000 € + Finder’s Fee
*** Cap D’Ail, Superb waterfront home
This fabulous property is ideally situated in Cap d’Ail and offers a separate staff or guest house, Jacuzzi, private garden, swimming pool and exceptional sea views. Includes 4 bedrooms, 3 reception rooms, 4 bathrooms, swimming pool.
Asking Price: 8,500,000 € + Finder’s Fee
Next session: March 27, 2007 at 2 p.m.
Notaires de Paris
Place du Châtelet
12 avenue Victoria
Additional information on Les Ventes aux Enchères des Notaires can be found on the Web site at http://www.encheres-Paris.com/ Though the site has a button for an English version, it isn’t reliable to work.
To read Schuyler Hoffman’s article about the property auctions in Paris, click on:
Several studios are available at the same address, 12 bis rue Caillaux, 75013 PARIS 13th
STUDIO 20,54 m²
Opening Bid: 30,000 €
Deposit: 6,000 €
STUDIO 18,61 m² rented
Opening Bid: 30,000 €
Deposit: 6,000 €
STUDIO 20,33 m²
Opening Bid: 30,000 €
Deposit: 6,000 €
STUDIO 20,25 m² rented
Opening Bid: 46,000 €
Deposit: 9,200 €
STUDIO 17,63 m² rented
Opening Bid: 46,000 €
Deposit: 9,200 €
STUDIO 21,12 m²
Opening Bid: 61,000 €
Deposit: 12,200 €
STUDIO 22,13 m²
Opening Bid: 24,000 €
Deposit: 4,800 €
LEASEBACK NEWS FROM IMOINVEST
France, Mediterranean Coast, Grasse
Studio 23m² to 28m² €90,000 to €109,000
One Bedroom 31m² to 39m² €100,000 to €124,000
Guaranteed Buy to Let – Leaseback
GUARANTEED RENTAL INCOME UP TO: 5.00%
Excellent location in the charming town of Grasse a commune of the Alpes-Maritimes region on the French Riviera. New leaseback hotel residence with high guaranteed rental return and state of the art facilities and services meeting the needs of the modern day professional! Grasse is the centre of the French perfume industry and is known as the world’s perfume capital producing over two-thirds of France’s natural aromas. This industry turns over more than 600 million euros a year. Grasse has been a popular tourist town for several centuries, with the smell of flowers and clear air. Tiny streets wind forever between the 17th and 18th century buildings, up and down ancient steps, passing through arched tunnels and sometimes opening out onto large squares.
Residence Virginia is offering the investor a leaseback agreement for an inital period of 9 years. Under this agreement one of France’s top management companies will guarantee up to 5% rental yield on the property. The management company is responsible for: marketing the property, maintenance, cleaning, repairs and changeovers. Owners of the property are not responsible for any day-to-day running of the apartments. In addition, owners have the possibility of using their property for holiday stays for up to 3 weeks with a reduced rental income.
This is a fantastic opportunity to invest in this renowned location and popular French tourist destination. Please secure your preferred apartment by reserving in the shortest delay with a 5% deposit.
When you make a purchase as important as a piece of real estate in a foreign country, you want to know that you can trust the people you are dealing with. Adrian Leeds has developed a network of professionals that meet only the highest of standards. With the expertise and experience of Adrian and her team, you can depend on getting the best advice and support to feel completely confident that you are making an informed investment decision.
Let us help you secure a mortgage in France at a competitive interest rate. Visit http://www.adrianleeds.com/frenchproperty/loan for more information or contact Adrian@AdrianLeeds.com
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Insider Paris Guides started almost 10 years ago with the idea of creating an online electronic regularly updated listing of my favorite good-value restaurants. I wrote it one summer, listed 50 Paris restaurants and we called it the Leeds Good Value Guide to Paris Restaurants. It sold from the moment it hit cyberspace and over the years, guides were added to the roster. Today there are four guides:
Good Value Restaurants
You don’t need to be rich to dine well in Paris – you just need to know where to go. Enjoy fabulous three-course meals with wine for just $20 to $30, including tax and tip. Explore more than 200 hand-picked great-value restaurants.
Living in France
France may seem familiar, but nearly everything … from paying taxes to having a baby … is done quite differently. Get the practical answers to nearly 300 questions about making a life in France.
Are you, like so many great writers past and present, drawn to and intoxicated by the City of Light? Discover the ins-and-outs of literary Paris whether you are a novelist, journalist, poet or just a dreamer.
This is the first guide of its kind, devoted to understanding and exploring the rich Black culture and vibrant Black community in Paris. Make the most of Paris’s multicultural sites, sounds and tastes.
Bastille Media took over the publishing responsibilities of the Insider Paris Guides this month and yes(!), we will continue to offer a discount to FPI subscribers.
The discount will be 10% off any guide and up to 25% off the entire
purchase (if two or more guides are purchased at the same time). But
the way you as a subscriber to FPI will take advantage of the discount has changed a bit. Here’s how it works:
1. Click on special Web link we give you just for FPI subscribers.
2. Then order one or more guide(s) and use the promotion code "ED762." This promotion code gives you 10% off your total
3. If you order two or more guides, then an additional 15% will be taken off automatically. There is no promotion code needed.
Here is the special "coupon" Web link just for you: http://www.insiderparisguides.com/offer/fpi_offer.htm
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HELPFUL CONVERSIONS FOR REAL ESTATE
1 square meter = 10.7639104 square feet
1 hectare = 2.4710538 acres
For more conversions, refer to: http://www.onlineconversion.com/
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