Paris Property: Hope Springs Eternal, Or at Least All Summer?

My geraniums are alive and well, as healthy and robust as they have ever been. So is the French property market.

I can tell you from recent experience that there are five buyers for every property on the Paris market ready to plunk down asking price with no negotiation and signing the documents ASAP so as not to miss an opportunity. Cash speaks loud and clear as the sellers are choosing among potential buyers for the one with the least amount of risk to close as soon as possible.

As a result, prices are going up as I write this. Agents are getting too full of themselves as they lie to or berate their potential buyers because there are more where they came from. If they lose one or two they don’t care. As a buyer, you must be prepared to say “I’ll take it,” pay the full price and either have your financing lined up, or money ready to transfer. We speak from personal experience. At this moment, it’s a dog-eat-dog world on the Paris property scene and I’d advise never to attempt the process alone.

The market is going to get even healthier if newly elected President Emmanuel Macron fulfills his promises to reduce “Taxe d’Habitation” which is predicted to give the property market a real boost. The self-employed will find it easier to get mortgages. A reduction in corporate taxes will attract foreign corporate investment, as well as more international buyers, not only because of a more unified E.U., but because his ideas to restrict wealth tax to property assets only will motivate wealthy owners to sell their properties, therefore encouraging foreign buyers to seize the opportunity. If his new party has a victory in the upcoming June parliamentary elections (expected), he’ll be able to push through his new policies easily. His policies also include a support of the construction of new housing to reduce the housing shortage, particularly in Paris. If he does that, then perhaps City Hall won’t be so vigilant toward owners of secondary properties who are renting short term to help cover their costs.

The property market is already hopeful and it’s showing. Hope is what it’s all about, since that gives investors the confidence that they are making wise decisions in investing in Europe’s future and therefore their own. Now is the time to buy. During normal times, from mid July through the month of August, can prove fruitless in the property hunt as owners and agencies take their annual vacations…but this year, I’m not so sure! We may see a real surge during the summer for the first time in many, many years, thanks to the renewed hope and strong demand.

Note: To learn in depth Macron’s proposed reforms, read his interview at Business Immo.

A bientôt,

Adrian Leeds
The Adrian Leeds Group

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