Rental Market Report Revelations
Parler Paris Rental Apartment, Penthouse Voltaire
October 1, 2009
Bonjour French Property Insider Subscriber,
Today’s French Property Insider offers a broad range of information, beginning with a report on the Paris rental market for the first half of 2009 created by New York Habitat. Read in today’s issue how John Rule, the Rental Manager for our small ’boutique’ firm of rental apartments, Parler Paris Apartments, and I, discover both the similarities and differences of our findings…and don’t miss the revelation of their report that surprised us all.
As a result of the report, today’s Hot Properties focuses on those apartments which will make good rental properties…as they say, "location, location, location" — all in central Paris where rentals are strongest.
On an interesting note from Nice, a reader and our agent confirm the suspicion that artist Raoul Dufy painted many of his scenes from the same building as an apartment offered for sale in a previous issue of French Property Insider. It’s still for sale if you’re interested! Read on to learn more.
In addition, there are many interesting articles from our sister publications to keep you up to date on what’s going on in the world of French real estate…and why this market is so strong and stable.
To any of you who are getting back to thinking about investing…now is a great time: prices are at a low, interest rates are at a low…and there’s only one way to go: up. Take advantage of this important time to invest.
Editor, French Property Insider
Email: [email protected]
P.S. Don’t forget that if you renew your subscription between now and October 18th, you’ll not only save half the price, but have an opportunity to participate in the Free Conference Call, "Your Pied-à-Terre in Paris: Own It All or Just a Fraction" on October 18th. Scroll down for more information.
Volume VII, Issue 39, October 1, 2009
In this issue:
* Paris Rental Market Weathering the Storm
* A Comparison with the Rental Market Report
* France Prepares Its 2010 Budget
* FPI at Half Price!
* A Property with a History
* Who was Raoul Dufy?
* Why France is an Easier Place to Invest
* FPI Fractional Property Offerings
* Munich and Paris Duke it Out
* Moneycorp: Take the Risk Out of Currency Conversion
* An Analyst Declares Real Estate Market on the Mend
* Free Consultation Offer Ending Soon!
* Parler Paris Apartments: Fall Specials
* Lifestyle: Brangelina Property in the News Again
* Hot Property Picks: Le Marais vs St.-Germain
* The Next Notaires’ Property Auction
* Money Matters for Women Conference in October
* Property Show in the Fall: Focus on Luxury
* How You Can Obtain a Mortgage in France
* Parler Paris Après-Midi: Next Gathering Oct. 13th
* Managing Your FPI Subscription
* Subscribers Receive Discount on Insider Paris Guides
* Less apartment rentals and lower prices due to a strong global recession and a continued strong Euro
* Strong competition from hotels as they also attempted to keep their occupancy rate high by dropping prices
* An uncertain outlook for 2010 as more than 60% of people in Paris believe that the economic uncertainty will continue
read the full report, click here
Rental Manager, John Rule, and I reviewed the New York Habitat report to determine if their findings were similar to ours at Parler Paris Apartments (http://www.adrianleeds.com/parlerparis/apartments). Our conclusion is this:
New York Habitat represents thousands of apartments and therefore has a much broader range from which to create such a report. Because they are not a full service managing agency, large apartments are less likely to be represented by them and therefore the findings on apartments of more than two bedrooms may not be as accurate as their findings on studios, one bedroom and two bedroom apartments.
The rental rates they post are net to the owner and therefore, when reviewing the rental rates on the market, keep in mind that agency-represented properties will be 20% to 40% higher than those noted in this report.
We do believe, however, that in general, their findings are correct. Rental rates and occupancy are down from previous years, but apartments that offer good location, quality amenities and priced well will perform better. Our apartments are all luxury properties and therefore our own experience shows less of a down trend than theirs.
What was surprising in their report is that Le Marais was the most popular district. In the past, it was Saint-Germain-des-Prés that took most of the requests…however, we question if their finding is skewed by the number of apartments offered in each area compared to the actual rentals or if because apartments in Le Marais were less expensive, therefore achieving a higher occupancy rate. Their report does not include "requests," but only valid completed rentals. If this finding is true, then it is clear that a property in Le Marais will produce a better return on investment as prices are lower by 2,000 to 5,000 euros per square meter, yet rental returns could be equal or higher in Le Marais compared to Saint-Germain-des-Prés.
We do agree with the general rate averages and average length of stays, but are mindful that their sampling is different from ours and therefore we have a slightly different experience. Yes, we agree, too, that Paris is still the number one destination in the world and that apartments offering a good mix, and particularly those of the highest standard, will fair better in a down market than the others.
PARIS, Sept 26 (Reuters) – France will run up a deficit of 8.2 percent of gross domestic product in 2009 and the economy will contract 2.25 percent, French Prime Minister Francois Fillon was quoted as saying on Saturday.
However, Fillon told Le Journal du Dimanche newspaper that he expected the economy would grow 0.75 percent in 2010, and predicted that the annualised growth rate would climb back to around 2 percent during the course of the year.
The centre-right government is due to present its 2010 budget on Sept. 30. Fillon said that although some tax loopholes would be closed and some public sector jobs axed, stimulus measures to help the economy would remain in place.
‘The 2010 budget will be aimed at the recovery,’ he said in the interview, released ahead of Sunday’s publication…
He also confirmed the government would introduce a carbon tax next year and would increase taxes on generous pension payouts. Taxes would be imposed on all capital gains on property sales, rather than just a portion as at present…
To read the entire article go to http://www.forbes.com/feeds/afx/2009/09/26/afx6935006.html.
na">When you renew your subscription for one more year or newly subscribe to French Property Insider at 50% off the regular subscription price (only $29 instead of $57.50 for 50 issues), you will be entitled to participate FREE OF CHARGE to a special Conference Call on Sunday, October 18th…
"Your Pied-à-Terre in Paris: Own It All or Just a Fraction"
Our very own Search Consultant, Mary Ellen Gallagher, will be on the call with me (Adrian Leeds), helping you decide what’s best for your Paris investment portfolio and what fits your needs and desires best…a pied-à-terre of your own or a fraction of one!
Subscribe or renew your subscription now!…for only $29 for 50 issues plus call in on October 18th to learn more about the differences between owning your own apartment or a fraction of one!
http://www.adrianleeds.com/frenchproperty/insider/members/signup.php or for more information go to http://adrianleeds.com/frenchproperty/insider
I read with much interest your email of Wednesday, September 16 (Setting Sights on the Sea) on your search for properties in Nice. I wanted you to be aware of something interesting which may be related to the apartment building you are looking in at the far eastern end of the Quai des Etats-Unis next to the Hôtel Suisse.
The French artist, Raoul Dufy, once lived in an apartment building at the same end of the Baie des Anges, and he had a view almost identical to the one you posted in your photo in your email. Dufy painted this view of his apartment in a well known painting which I am attaching for you below. (A large framed print of it is hanging in my office. I am looking at it as I write this.)
My wife and I stayed at the Hôtel Suisse several years ago and our room also had a similar view. Only later, by accident, did I become aware of Dufy’s painting from his apartment, which has the same view. I was never able to determine with any certainty if Dufy lived as a boarder in an apartment building, which perhaps later became the Hôtel Suisse, or in another apartment building next door or nearby. But I wanted you to be aware of this somewhat interesting possible connection just in case it was the same building (or indeed unit) you were looking at. The proprietors should know if Dufy lived there or not, I would think. If you are still looking at that apartment, it might be an interesting question to ask.
All my best. One of your biggest fans. (We would be great partners!)
Thank you so much for point this out. The agency that represents the apartment took your quest to heart and this is what we learned:
"Art historians know that Dufy lived in the building before the Pension (now Hotel) Suisse was separated from the section now called Le Rocamare in the late 1930s. As far as I can find out, there’s no documentary evidence of which rooms he lived in — but all the sight lines in the famous Baie des Anges paintings all suggest a view from the center of the building at the height of the third (or sometimes the fourth floor). So, I believe that most of the paintings were done in this apartment or within 20 to 25 feet of it.Of course, there are other historical associations with the building:
Musical: Berlioz was a long term visitor in the 1860s and wrote the overture to King Lear as a guest at Pension Suisse;
Literary: the heroine of Alcott’s LITTLE WOMEN also stays there and claims to be able to see Corsica in the morning light (no longer possible!);
Military-historical: the High Command of the Kriegsmarine lived in Le Rocamare in 1943 (there is a photo of the building covered in camouflage netting on display in the corridor to "l’ascenseur du chateau)".‘Avant de mourir, Raoul Dufy a demandé qu’on ouvre les volets de sa chambre pour qu’il puisse voir dehors. C’est vrai que c’était joli dehors.’I hope I have answered your question to your satisfaction John. Please don’t hesitate to contact me if you have any other questions."
Editor’s Note: To learn more about this property, visit http://www.adrianleeds.com/frenchproperty/insider/members/ or email us at [email protected].
Raoul Dufy (3 June 1877 – 23 March 1953) was a French Fauvist painter. He developed a colorful, decorative style that became fashionable for designs of ceramics, textiles and decorative schemes for public buildings. He is noted for scenes of open-air social events.
To read more, visit:
Dufy died near Forcalquier, France, on 23 March 1953, and was buried not far from Matisse in the Cimiez Monastery Cemetery in Cimiez, a suburb of the city of Nice, France.
France is an easier place for international property buyers to make a purchase in, it has been stated.
Director of overseas mortgage brokers Conti, Clare Nessling, told the Independent that the country has a greater mortgage availability than most because of its different approach to banking.
"They [French banks] certainly haven’t taken the extreme view that most UK lenders did. Throughout the credit crunch we’ve still been able to get 100 per cent mortgages in France for loans over €250,000 (£230,000)," she stated.
Around four out of five mortgages in the country are fixed-rate deals, the paper noted, suggesting this adds to the stability of the market…
To read the entire article go to http://www.halifax-international-expats.com/stability-makes-france-easier-to-buy-international-property-in-19382895/.
If you are interested in traditional fractional ownership properties currently offered by our Fractional Ownership partners, see below:
LE PALACE DES VOSGES
CHEZ LA TOUR
LE PETIT TRESOR
NOTRE MAISON DANS TOULOUGES
To see our latest Fractional offerings go to http://adrianleeds.com/frenchproperty/fractional/fractional_offerings.html
Munich is the most attractive European city for real estate investment judging by the level of demand, surpassing London and Paris, due to its diversified economy and growing population, according to a report by LaSalle Investment Management.
“This report is slightly confusing in that it only focuses on the demand side,” Robin Goodchild from Lasalle Investment Management told CNBC. “The pricing side is subtly different, and the pricing has actually been more extreme here in London and actually in Paris.”
London slipped to 8th in the city ranking, but Goodchild said it will “rise back up.”
“Munich and Paris have been neck and neck for the last few years,” he said “and they’re going to stay strong.” He said Paris will stay in the top three and Munich in the top five and “may actually challenge because it is the German city that is doing the best.”…
To read the entire article go to http://ecommerce-journal.com/news/24291_munich-beats-european-cities-real-estate-investment-appeal?drgn=3.
I spent a few days in France this week – work and pleasure, mixed – and realized that the country is perhaps something of an unsung hero of the real estate recession. It has suffered of course. I was in the Luberon, part of Provence, about two hours inland from Marseille. The rural idyll had plenty of homes lingering on the market for more than a year thanks to a drop in overseas buyers. Go into Marseille itself and there has been a visible increase in the vacancy rate of commercial property.
But the severity of the downturn, in property terms, is less than in much of Europe, and far below that of north America and parts of Asia. The figures prove the point.
The French commercial market was static in the first quarter of 2009, showing no price changes nor drop off in transactions, after two years of valuation declines and reducing numbers of sales and rentals. But three big deals in the second quarter of 2009 show things may be on the mend.
In the spring, a major Paris retail outlet at Rue du Faubourt Honore was purchased by a prominent French store chain for just above €103 million (Dh555m); in the summer a German firm snapped up offices in Lyon for €40m; now another Parisian store, in the famous Boulevard Haussmann, has been bought for more than €50m.
By the standards of 2006, these acquisitions would be unexceptional, but by the standards of 2007 and 2008, they are bordering on the miraculous.
I am not painting an overly optimistic picture here. The French market is still in tough times and funds are still in distress – the country’s SCPI investment funds recorded only €123.5m in foreign investment in the first half of 2009, a drop of 76 per cent on the €513m for the same period a year earlier. But the market is improving and with the wider economy of France now formally out of recession, commercial realtors report dramatically increased international interest in recent months…
, Helvetica, sans-serif">To read the entire article go to http://www.business24-7.ae/Articles/2009/10/Pages/30092009/10012009_c1703e69d6a44943b2b56f6ce53e33d8.aspx.
The Moneycorp MasterCard Prepaid card can be loaded with euros or US dollars, by the main cardholder using a debit or credit card.
There is no line of credit with the card so you can only spend what you have loaded – helping you to stay in control of your money.
You can use your Moneycorp Prepaid Card to make purchases wherever the MasterCard Acceptance Mark is displayed– that’s over 26 million locations including 1.2 million ATMs worldwide.
It’s easy to manage your money with the Moneycorp Prepaid Card and account.
Take the Risk Out of Currency Conversion
If you’re buying a holiday home or investment property overseas, when you trade your currency is crucial. The euro exchange rate is constantly fluctuating, so trading at the right time will mean your money goes a lot further. Adrian Leeds Group LLC and Moneycorp are working together to ensure you make the most of your Dollar or Sterling when buying a property in France.
For the latest exchange rate use our currency converter at http://www.adrianleeds.com/frenchproperty/loan/moneycorpconvertor and learn more about moneycorp here:
If you are a guest staying in any one of our luxurious Parler Paris Apartments, and would like to consider having your own "pied-à-terre" for your pleasure and profit, contact Adrian Lees for a FREE one-hour consultation while you’re enjoying the apartment in the City of Light. Visit http://www.adrianleeds.com/parlerparis/apartments for more information or email me at [email protected].
Parler Paris Apartments Welcome to your home in Paris. Home is how you will feel in a private apartment in Paris that has the "seal of approval" from Parler Paris Apartments and me, Adrian Leeds. Parler Paris Apartments offers high quality accommodations to make your stay in the City of Light as enjoyable and memorable as possible.
We at Parler Paris know each and every apartment owner or manager personally, and stand behind the quality of those we represent. We understand your needs and desires, all the small details that make a rental apartment a warm and welcoming home and a much better alternative to an impersonal hotel!Parler Paris Apartments is administered and serviced by the same great team as Parler Paris, French Property Insider and French Property Consultation. You can trust that Parler Paris Apartments and all those with whom it is associated will do heir best for your 100% guaranteed satisfaction.
SPOTLIGHT APARTMENT(S): Last Minute Special Rate: Studio Le Provençal (and others) Now Available for the Fall! Ask about the special discount on last-minute reservations…
3rd Arrondissement, Le Marais
Large Studio, Sleeps 2
nch Property Insider newsletters. There isn’t an apartment in Paris more charming and cheerful…ask all who have had the pleasure of staying here. Le Provençal is completely equipped in spite of its size! Complete with a king size bed that converts to twin beds when desired, a Siemens brand washer/dryer combination, espresso maker, microwave, toaster-oven, two-burner ceramic stove, refrigerator, high speed Internet, flat screen TV, DVD player, stereo, and free(!) long distance phone service, this delightful and cozy studio makes a perfect Parisian home for one or two.
Brad Pitt’s looking to buy property surrounding his and Angelina Jolie’s French estate, Chateau Miraval, to build an airport so the family can fly in and out unseen by paparazzi.
Brangelina plunked down $60 million for the 1,000-acre estate in the South of France, which features 35 bedrooms, a vineyard, lake, forest and a moat.
A source told the New York Post, "One thing he loves about the estate is the privacy it affords. Nobody can get near it. So with Angelina completing her pilot’s license, their own airstrip would give them total freedom to come and go."
To read entire article go to http://www.denverpost.com/celebritybuzz/ci_13411703.
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.
This week we focus on some interesting property opportunities, suitable for rental, found in the Marais and Saint-Germain-des-Prés.
*** Marais, 3rd: One-bedroom, approx. 37m²
Magnificent two-room apartment located in a 17th century building in perfect condition. The apartment has exposed beams and stone from the period and is completely renovated and full of charm. There is a spacious living room with open, fully equipped kitchen. The bedroom faces a quiet courtyard and has an ensuite bathroom. All the historic charm and located in the heart of Paris.
Asking Price: € 294 000 + 2.5% Finder’s Fee
*** Marais, 4th: One-bedroom, approx. 64m²
Located in the heart of the Marais near the Pompidou Centre, Hotel de Ville and Notre Dame. This one bedroom apartment has all the charm of Paris. The apartment has mix of original details from the 18th century including Point d’Hongrie parquet floors, tomettes, exposed beams, fireplace and a pleasant view. The apartment is located on the third floor, has a southern exposure. There is a separate bathroom with bathtub and WC. Near plenty of shopping, restaurants and cafes. The building has digicode and Interphone security. Perfect as a pied à terre or rental investment.
Asking Price: € 515 000 + 2.5% Finder’s Fee
*** St-Germain, 6th: Studio, approx. 28m²
Nestled in the heart of chic Saint-Germain-des-Prés, down a quiet passage way is this charming studio apartment. Located on the 4th floor of a beautiful 18th century building with elevator, this apartment is comprised of a living room with alcove, open kitchen and renovated bathroom with shower. The flat is in very good condition and requires no work. This is an
Asking Price: € 315 000 + 2.5% Finder’s Fee
*** St-Germain, 6th: One-bedroom, approx. 40m²
In perfect condition and situated in the lively Latin Quarter near the Panthéon, on the first floor of a 19th-century building with elevator and gardien, a compact one-bedroom apartment with parquet floors, new and fully equipped open-plan kitchen, large modern bathroom and walk-in bedroom closet. Courtyard location assures absolute quiet. Cellar storage space.
Asking Price: € 495 000 + 2.5% Finder’s Fee
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 www.encheres-Paris.com.
To read Schuyler Hoffman’s article about the property auctions in Paris, click on:
|The following properties will be auctioned off October 13, 2009:|
Editor’s Note: If you look at the properties on the Notaire’s site (www.encheres-paris.com), when you click on the information for a particular property there is also a link to Google Maps to show you exactly where the property is located.
If you’ve never benefited from financial coaching, this is the place for you!
Come hear Adrian Leeds enlighten you on "Property Investment in France" 2 p.m. to 3:15 p.m.!
MONEY MATTERS FOR WOMEN is a half-day conference held in Paris, France for today’s global woman who wants to understand her current financial situation, plan intelligently and take proactive steps in managing her money.
The conference features:
- A dynamic keynote speaker
– Nine concurrent presentations and discussions with professional financial information
– A closing session for all conference attendees and a networking cocktail reception to end the day
This conference recognizes that women have unique financial goals and challenges which must be addressed. So invite your daughter, friend or neighbor to share in this empowering experience and walk away with more confidence and the tools to own your financial uture.
The Money Matters for Women 2009 conference is presented by WICE and hosted by The American University of Paris. Special thanks to Smart Women Products for their continued support of this conference.For more information and to register, visit http://www.moneymattersforwomen.org.
* Luxury Real Estate Trade Fair Loves Paris in the Autumn *
Not everyone can afford a private island or a fancy penthouse on New York’s Upper East Side. Still, for those who can, an invitation to the Luxury Real Estate Trade Fair will be just the thing to make the autumn seem brighter. And where better to promote high-end property than Paris, the world capital of chic? This elegant ambience will be further enhanced by the venue, Paris’s famous Musée du Louvre.
On the 27th, 28th and 29th of November 2009 Prestige-Paris will celebrate its third birthday with the assistance of France Convention, a specialist in niche and luxury trade fairs. This year’s gathering will be required both to meet the visitors’ very demanding expectations and outdo last year’s exceptionally successful event.
The recent recession has failed to affect the luxury sector as much as the rest of the economy, in fact the latest figures have revealed that the Parisian real estate market has improved. It seems that the most beautiful and luxurious homes never fail to find a buyer, a thought that will encourage participants in this most prestigious property exhibition.
When you make a purchase as important as a piece of real estate in a foreign country, you ant 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.
HELPFUL CONVERSIONS FOR REAL ESTATE
1 square meter = 10.7639104 square feet
1 hectare = 2.4710538 acres
For more conversions, refer to: www.onlineconversion.com/
The second Tuesday of every month, Parler Paris and French Property Insider readers gather at La Pierre du Marais for a drink and a "schmooze" –It’s an opportunity to meet and chat with other like-minded people and a great way to make friends! Costs nothing except your drinks. Don’t miss the next gathering Tuesday, October 13th, 2009 from 3 to 5 p.m. and every second Tuesday of the month (except August).
2. Click on "Manage Subsc
n." You’ll find it under the "Subscribers Only" section in the sidebar.
3. Enter your username and password.
4. On the Welcome Page, go to "Manage Your Account" and click on "Change Password/Edit Profile"
5. Once you’ve made the changes, scroll down to the bottom of the page and click on "Save Profile."
Of course, we’re always happy to help, so if you do need assistance, send an email to [email protected].
To access password protected pages: click on any of the links on the left panel of the home page of FrenchPropertyInsider.com under "Subscriber’s Only," then type in your personal username and password.
Past issues of FPI are available on the Web site. You will find the
"Past Issues" link on the left under "Subscribers Only" or by going to
www.adrianleeds.com/frenchproperty/insider/membersTo receive your free French Leaseback Report or the Paris Property
Report, click on
Insider Paris Guides are written for people who love the City of Light. You’ll get a Paris insider perspective on Restaurants… Making a Life… Black Culture… Expat Writers…and the newest guide, Practical Paris!
French Property Insider subscribers receive a discount of 10% off any uide and up to 25% off the entire purchase (if two or more guides are purchased at the same time). 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:
SUBSCRIBE TO PARLER PARIS
If you’re not a regular reader of the Parler Paris daily e-letter, and would like to be, simply enter your e-mail address here (it’s free!): www.adrianleeds.com/parlerparis
Copyright 2010, Adrian Leeds®
Adrian Leeds Group, LLC, www.adrianleeds.com