Americans Buying in Paris Big Time!

According to a recent article in Le Parisien by Delphine Denuit, Americans now account for 25% of all foreign property buyers in Paris.

I am not surprised on one hand, but on the other, our own American market has been more drawn to Nice and the Riviera than Paris for the last couple of years. Perhaps the statistics in the article are a bit out-dated, or perhaps our clientele is distinctly different because they come to us BEFORE they decide WHERE in France to live or invest. Then, with our guidance, they consider options other than Paris.

No fewer than 62 nationalities bought an apartment in Paris in 2023, 15 more nationalities than in 2021. Two-thirds (68%) of non-resident foreign buyers chose the capital city for a property purchase during that year. This is stable compared to 2022, but significantly higher than in previous years, when less than one in two opted for Paris. They now opt almost exclusively for apartments, with houses accounting for just 5% of their purchases (compared with 15% in 2021).

Again, this has surprised me, although prices dropping in Paris makes it awfully attractive. Three Paris districts have seen prices rise in the 4th quarter of 2023, thanks to the foreign buyers: Notre-Dame (15.7% price increase, 4th Arrondissement), Arsenal (+14.9%, 4th Arrondissement) and La Madeleine (+7.1%) were the only ones to see their prices rise in the fourth quarter of 2023. Le Parisien says that among them, the Americans stand out.

“They account for 25 % of buyers of resale apartments in the capital in 2023,” noted Notaire Élodie Frémont. Their purchase budget was an average of €715,000 for about 60 square meters. “This is twice as much as the budget of French residents, as they mainly buy in the capital’s central districts, where prices are higher,” she commented. The 1st, 3rd, 4th and 6th arrondissements were the most sought-after by Americans, the 7th and 16th less so. They love Paris and come frequently.” (Part of her claim surprises me, too, as the 7th is usually at the top of the list—especially properties with Eiffel Tower views.)

American buyers have high purchasing power, are looking for comfortable pied-à-terres with little sensitivity to the economic climate, and buy using cash, or at least without taking out a loan in France…because getting a mortgage in France is difficult for the average American. And the dollar is strong at the moment, so their purchasing power is even stronger.

The article claims that some are buying “sight-unseen.” This is definitely true, as we have assisted many clients over the last few years in buying something they’ve never stepped foot in. But, of course, they have us to ensure they are making a good purchase, and do not need to depend on an agent who represents the seller—which can’t give them the same confidence. Other nationalities have gotten on the bandwagon—the Lebanese (12%), Italians (9%) and Germans share the other places on the Parisian podium. Israelis, too, are looking to secure their assets. It’s not surprising that Brexit has helped Paris regain its reputation for political and monetary stability, leaving London and England behind.

Still, in spite of the Paris market seemingly bursting at the seams with Americans, our clients have turned more toward the South of France, where property is more affordable than Paris, but where prices have gone up, demonstrating the burgeoning demand.

I have spent this past week filming our 56th House Hunters International episode in such beautiful enclaves as Antibes, Biot and Valbonne. The landscape, the properties and the lifestyle is very seductive. Stay tuned for more information about these and more along the Mediterranean Sea and in the Provence-Alpes-Côte-d’Azur region (PACA) that offer more bang for your buck and a more relaxing lifestyle.

A bientôt,