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Property In France Is Pricier Than Ever

Volume I, Issue 42

Jocelyn Carnegie, Porter Scott and I just returned from two days at the International Living Paris Office in Waterford, Ireland, where we convened with Publisher Kathleen Peddicord and her husband and CFO, Lief Simon, to discuss what else?…property in France. (Hence the reason for this newsletter to be a day late.)
Jocelyn Carnegie, whose name you may have seen before, has officially taken over as PropertySales Manager. He’s been working with a number of our readers and friends to find them the perfect pied-à-terre in Paris or stone cottage in Languedoc-Roussillon, assist on getting mortgages and setting up bank accounts. He never stops hunting down good properties…and filled us in on a triplex on the Ile Saint- Louis that he and Porter Scott had a chance to visit today. To reach him directly, new email address is [email protected]
Porter Scott, you may remember, is the Southerner (Alabama) who is renovating the International Living rue de la Huchette apartment and who is now our official Property Rental Manager, overseeing not only our IL apartments, but also others he owns himself and those of our clients. You will be hearing from him as time progresses, but for now, if you want to stay in one the apartments next time you’re in Paris, or have an apartment you need taken care of, he’s the man to talk to. His new email address is [email protected]
We made some very important decisions while we were there — some of which are going to make a difference for you, the reader. Very soon, you’ll be seeing a new Parler Paris Postcard called “Paris Pocket Property.” Every Friday, we’ll be bringing you snippets of a few apartments in Paris for sale at a bargain. It’ll be up to you whether you want to just dream or take advantage of the opportunity. Meanwhile, you’ll be seeing more from the rest of France in French Property Insider.
And oOwhole new e-letter called “French Insider” — a weekly exposé of what’s happening around the country, upcoming events you’ll want to take part in and articles about life in France that help you get through the ins and outs with ease.
And for those of you who wouldn’t mind a weekend in SAN FRANCISCO, get ready for a LIVING AND INVESTING IN FRANCE CONFERENCE March 12 – 14, 2003 with our finest speakers to help make your dreams come true. If you wish to know more about it, then please email us to put you on our mailing list.
A bientôt,
Adrian Leeds
Editor, French Property Insider
Email: [email protected]
P.S. We had exceptional service on the newest European Airline (since May 2003), JetMagic.com, that flies to Cork, Barcelona, Belfast, London, Milan, Rome, Nice, Alicante, Nantes, Jersey, Edinburgh, Liverpool and Paris. Paris to Cork was as little as 150 Euro plus tax! We were wined and dined by very pleasant attendants sporting gourmet handmade sandwiches.
Volume I, Issue 42, November 27, 2003
In this issue:
* Climbing the Alpine Price Slopes
* Doubling Up in Just Four Years
* Paris Prices Still Perking Up
* Northern France a New Safe Bet
* A Currency Exchange Update
* Hot Property: Alpine Haven
* Property For Sale: Auction Bargains in Paris and Northern France Best Bets
* General FPI Information…
By Jocelyn Carnegie
Strong demand from foreign buyers continues to support strong growth in the ski-chalet market. In Chamonix, realtors are having to take extra English lessons because last year almost half of all transactions in the Mont Blanc area were with British buyers. Not only have the British been buying up the Alps but also Dutch, Spanish, Russian and even Chinese buyers have been donning their financial skis to invest in the area. On average, prices have risen 10% for the last three years and importantly over 27% in the last 10 months. According to the president of the “Chambre de Notaires” in Savoie, particularly buoyant is high-end property with average prices of nearly 5,500 Euro per square meter for larger properties.
Prices have continued to rise while available land has dwindled. In and around most ski stations in this region, development limits have long since been reached and hence the price pressure continues to mount. There is demand, but no supply. This is one reason why buildings are now being redeveloped by companies such as Pierre & Vacances in Avoriaz and sold as Leasebacks. Eurogroup is another such developer and is the leading management company for Leaseback property in the Alps. It’s not all clear sailing for the happy investor as the Leaseback apartments are selling like hotcakes — even in a 1970’s new development concrete jungle like Avoriaz. The light at the end of the tunnel is that any new Leasebacks being built today are taking care to be a little more sympathetic in style. The subsequent oncoming train is that they are selling for up to 6,000 Euro per square meter. To illustrate the pressure, 700 apartments and chalets are in the process of being built at Arc 1950 (for this price the management company will deliver your groceries to your apartment if you are all skied out). Before the first stone was laid, they had pre-sold 90% of the development under the Leaseback scheme.
Better jump on the next flight to Geneva if you want to be involved in this Soviet bread queue!
By Adrian Leeds
Yes, it’s true. The prices of properties in France have doubled in less than four years. And there are simply no more apartments in Paris of three or four rooms for less than 100,000 Euros. “Point” (period). Prices have steadily increased on the average between 9% and 10% for all of France, with the average per meter for an apartment at 2,221 Euros and 1,521 Euros for a home.
The reasons? Partly because there are more single people living alone, they have more buying power, interest rates are at an all time low and prices across Europe as a result of the Euro are finding a level across the borders.
What has emerged from the statistics is that people are showing themselves to be “captaliens” (Parisians in the Capitol City), “îliens”(Suburbanites in the Ile de France) and “sudiens” (Sunbirds in the South). Montpelier has shown the largest growth evolving 24.7% from third quarter 2002 to third quarter 2003 and Perpignan not far behind at 21%. The Paris region has lost inhabitants…those who are seeking a better quality of life with more space, less pollution and less commute time. It’s the first time in 30 years that the principal property market is not in the Ile-de-France!
By Adrian Leeds
Prices in Paris are still on the upswing with no leveling yet in sight. Foreign buyers are still contributing to the flaming market. Americans are returning to France, but spending less (the weak dollar can be blamed), but meanwhile, the English and Italians are the most active purchasers, followed by the Swiss and the Belgians. They have become savvy buyers, are well-informed, and not overpaying as they might once had done.
The most expensive “quartier” in Paris (by average per square meter) continues to be Saint-Germian-des-Prés in the 6th at 6,823 Euros. Least expensive is the Goutte-d’Or in the 18th at 2,029 Euros.
If you’re placing bets on best return on your investment in the near future…buy in the 10th for a pleasant surprise. Expect to spend less than half as you would in the 6th and half again more as you would in the 18th, but ten years from now, the 50 square meter apartment you purchased for 160,000 Euros will be worth 693,754!
By Jocelyn Carnegie
The lure of living in France is not only about alfresco dining and donning your beret to go to the market on Sunday mornings. There are naturally many more reasons for waving either a temporary or indeed a permanent farewell to wherever happens to be called home, not least of which are the potential margins still available in property throughout France.
The English County of Kent’s decision to encourage British commuters to buy property in France and commute across the Channel due to the lack of housing in England was cited recently as ‘taking nimby-ism to new extremes.’ The article appeared in a British publication which did begin in rather cynical tones due to the fact that Eurotunnel (the UK/French company set up to administer the tunnel between France and Kent in England) had no plans to reduce its fares or introduce season tickets to mitigate the rapidly crippling £320 ($550) per day cost of the exercise. The author, however, continued that, with careful sourcing of the right property in the right area, the commute could be done on a weekly basis with the help of flexible working and the ubiquitous low cost airline, Ryanair. He also suggested that it could be an extremely good investment and since the article appeared a £10 ($17) commuter ticket has been mooted by Eurotunnel.
To give Kent Council its due, it has been asked to accommodate nearly 15% of the 800,000 new houses scheduled for construction in the south east of England by 2016. There is, however, an opportunity in this superficially hair-brained scheme for UK vendors to move to northern France and potentially save themselves 30% on the cost of a new house. Looking at it another way, there is little difference in getting up at 6 a.m. to catch the ‘snailrail’ into London from Kent and getting up an hour later near Le Touquet and still being in London by 8:46 a.m.
The investment required to build all these houses is less clear – Kent has a sum of over $10 billion to raise for housing and infrastructure over the next 20 years and is trying to increase the flow of traffic both ways by encouraging French companies to establish themselves close to London. I spoke to local authority leader, Sir Sandy Bruce Lockhart, who told me that they had raised a little over $150 million to date. Some ways to go I fear!
“This idea was first mooted when Eurotunnel approached us to suggest that up to 10,000 new homes could be built in northern France to accommodate and encourage cross-channel commuting. Eurotunnel has huge influence in the Calais region and felt that a commercial opportunity might arise that could benefit both sides of the Channel.”
Does this present a realistic opportunity for IL readers? Potentially, with below average building land values, there may be an opportunity in a long-term asset growth play in this region.
Since the late 1990’s the British have been flocking to France and it is estimated that the rate is now 20,000 per year. The French government is actively encouraging this trend by introducing tax incentives and opening up the banking and lending mechanisms for foreign buyers. The French region of Pas de Calais is in desperate need of inward investment and although prices in Calais itself have broken 12% growth in the last year, the regional average per square meter is still low at just over 1,000 Euro.
How feasible an option is it to commute from France to London on either a daily or a part-weekly basis? The answer may well be, increasingly. Eurotunnel were upbeat about the feasibility of the proposal, “The improved ease, efficiency and cost-effectiveness of cross-channel travel means that cross-channel commuting is now a reality.” The company cites lower housing prices, lower costs of living and quality of life as three good reasons why British buyers might consider this option. Ryanair now flies to almost 20 provincial locations in France. EasyJet, Air France and British Airways have flights linking Paris and other French cities to several UK destinations.
Prices have been rising in most areas of France at around 10-15%. Some areas have reported an 18-20% rise in property values; some up to 40%. Even the French have begun to call the Dordogne, ‘Dordogneshire.’ Calais has never been a choice destination for holidays, however, given a reason to live in the region — the incentives are there in terms of val
ue for money and standard of living — there may well be an opportunity to build an unusual asset portfolio in the region. Le Touquet is approximately 30 minutes from Calais and the tunnel and is famously known as ‘Paris Plage’ (literally Paris Beach!), a coastal resort to where many Parisians spill in the summer. Within fifteen minutes of the tunnel, there are some charming, unspoiled villages both on the coast as well as inland, where a three-bedroom traditional cottage can be bought for $150,000-250,000. There may be opportunities for Leaseback investments as well as ‘out of France’ sales to UK buyers and developers.
It is a long commute from the US to London via the Channel Tunnel, but perhaps the demographics are worth a look as the world grows ever smaller. England is smaller still, would fit into France several times and has the same population. You never know, you could make a quick turn on some real estate on this side of the English Channel.

*1,000 m2 represents approximately ¼ acre.
If you have basic questions concerning apartment and home renovation, contact our resident expert Derek Bush by visiting https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/services.html

A service of http://www.xe.com
Subscribe for free at: http://www.xe.com/cus/

Rates as of 2003.11.27 22:31:21 UTC GMT.
1 U.S. Dollar equals 0.839455 Euros (0.839552 Euro last week)
1 Euro equals 1.19125 U.S. Dollars (1.19111 last week)
1 U.K. Pound equals 1.44121 Euros (1.43051 Euros last week)
1 Euro equals 0.693860 U.K. Pounds (0.699053 Pounds last week)
The International Living Paris Office can help you secure a mortgage in France with interest rates as low as 3.35%.
Visit https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/loan for more information or contact us

We are constantly looking at properties for sale to offer to our subscribers only. Each week we will be bringing you one or two properties we believe are especially worth your consideration. As a subscriber, you will have an exclusive first look at these.
Properties sell very quickly in Paris. The best way to find the apartment or home of your dreams is to allow us to do a preliminary search before your arrival so that you visit only the best of the properties and can make a decision quickly.
To learn more about our property search services, visit: https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/propertyconsultation.html
See photos of the properties by visiting the website at https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/currentissue.html
To access any password protected pages, the username is: fpiuser and the password is: paris1802
Near CHATEL, about 3 kms from the Swiss border and 800 meters from the center of the village of Portes du Soleil, this 300m2 (3,229 sqft) chalet is divided into four 50m2 furnished apartments. Each apartment has two bedrooms, sitting room, kitchen and either a terrace or balcony, central heating, cellar and large attics. The property has a clothes drying room, its own parking and a south-facing view over a lake. This has good rental potential and would suit an investor.
Asking Price 470,000 Euro + 2% Finders Fee
Serious inquiries email: Haute_Savoie
See photos of the properties by visiting the website at https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/currentissue.html
To access any password protected pages, the username is: fpiuser and the password is: paris1802
All of the following apartments are for sale by owner. There are no agency fees incurred with the exception of a finders fee we place to connect you with the owner and assist you in the purchase. We have chosen two very high level properties and two very low level properties, but both in very rentable areas of the city, should you wish to make your investment profitable.
The prime rental neighborhoods are the 1st – 8th arrondissements, but each depending on location within each arrondissement. The most requested is the Ile Saint-Louis, second the 6th, third the 4th. The most expensive property in the city is the Place des Vosges in the 4th, Ile Saint-Louis (also 4th) and the 6th arrondissement.
Property auction December 16
Bercy Expo
40, avenue des Terroirs de France
Paris 12th
For more information about how to buy property at the auctions, read articles on the French Property Insider site at:
https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/articles/auctions1.html and https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/articles/auctions2.html
* 3 pièces 58,30 m² apartment
34 rue de l’université, PARIS 7th
Opening Bid: 266,000
Consignment: 53,200
* 3 pièces 58,30 m² apartment
34 rue de l’université, PARIS 7th
Opening Bid: 287,000
Consignment: 57,400
* 2 pièces 18,47 m² apartment
23 rue Saint Jacques, PARIS 5th
Opening Bid: 34,500
Consignment: 6,900
Set in almost an acre of wooded and enclosed land. 130m2 (7 rooms) house with salon, dining room, equipped kitchen, 3 bedrooms, bathroom. Located in a small village to the south of Calais; about 15 minutes from the Channel Tunnel. Garage and outbuilding.
Asking Price 266,994 Euro + 2% Finders Fee
Serious inquiries email: Near_Calais
**ETAPLES: About 30 minutes from Calais
In a residential sector of Etaples, near to Le Touquet, this superbly renovated and maintained property set in a garden with a wonderful sea view. 95 m2. Huge salon and 3 bedrooms. Total cellar.

Asking Price 216,000 Euro +2% Finders Fee
Serious inquiries email: Etaples
About ?-acre (14,424 ft2 / 1,340 m2) of building land near Le Touquet in a quiet rural setting yet close to a village.
Asking Price 45,400 Euro + 2% Finders Fee
Serious inquiries email: Near_Le_Touquet
In the Valley of the River Somme, about 1.65 acres of land for building with small lakes included.
Asking Price 20,125 Euro + 2% Finders Fee
Serious inquiries email: Building_Lots
This is your opportunity to meet twice a 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.
For a detail description of the past meeting and for more information about Parler Paris Après Midi, visitb https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apresmidi.html
Don’t forget that with your FPI subscription you are entitled to a discount on the purchase of any Insider Paris Guides. You’ll find details of the guides at http://www.insiderparisguides.com. When ordering, a box will pop up allowing you to enter the following username/password
Order more than one guide at a time and you will receive an additional discount!
Username: propertyinsider
Password: liveinfrance
If you are seeking to rent a furnished apartment for a week, a month or a year or you have an apartment you wish to rent, contact Adrian Leeds
– FPI Website: To access any password protected pages, the username is: fpiuser and the password is: paris1802. If your computer utilizes cookies, once you log into a subscriber only section, the login information will remain active for seven days, after which you will have to login again.
– Past issues of FPI are available on the website. You will find the “Past Issues” link on the left under “Subscribers Only” or by going to https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/archives.cfm
– To receive your free French Leaseback Report or the Paris Property Report, click on https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/reports2003.cfm and download the pdf versions.
– Instructions for upcoming conference calls are on the FPI website. You’ll find the link under the “Subscribers Only” section on the left of any page.
– Get In On The Discussion: Care to weigh-in on current HOT topics of discussion on France? Get in on or start your own thread on our bulletin board at http://www.agora-inc.com/forums/index.cfm?cfapp=15
2 lovely apartments in the 1st arrondissment across the street from the Tuileries Gardens, 3 minutes form the Place Vendome. Available for rent by the week or longer term: 6 months to 1 year. 2-3 bedroom duplex w. 2 baths/ Tuileries view. OR 1-2 bedroom same building. Both are elevator accessible, non-smoking and no pet properties.
To check them out and for reservation and contact information go to http://www.youlloveparis.com
Elegant, Tasteful, Calm at Saint-Germain-des-Prés, 6th arrondissement, one bedroom apartment, sleeps 4. Amenities: Fireplace, Phone, Cable TV, Full Kitchen, Microwave, Refrigerator, Cooking Utensils provided, Linens provided, Washer & Dryer, Bathtub with Shower.
For more
information, visit:
https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/rentals/scott.html or contact
Stay in your own 17th-century pied-à-terre in the heart of Saint-Germain-des-Prés, Paris, by the week or month. Sleeps 4. Newly furnished and redecorated. Totally charming. From $150 per night. Visit https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/rentals/mazarine.html or
contact Porter Scott at Mazarine
Guest Room or Two-Bedroom Apartment Located in a 17th century Le Marais Hotel Particulier, this 70 square meter apartment two-bedroom apartment with lots of light is nicely furnished and is perfect for a single woman in the freshly renovated guest room when owner Adrian Leeds is in or for up to 4 people when she’s traveling.
The Guest Room is offered at $575 per week ($250 deposit required). The Entire Apartment is offered at $875 per week ($350 deposit required — AVAILABLE MOST DATES THE SECOND AND THIRD WEEK OF MARCH.) References are required.
Pictures and more details available at https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apartments/rentals/leeds.html
For information and reservations email: ABL_Apartment
In the heart of the Marais extremely charming 42 square meter studio with loft. Fireplace, exposed beams on a beautiful 17th century courtyard.
All amenities: telephone, fax, Internet, cable TV, washing machine, fully equipped kitchen, housekeeping once a week, piano allure
Métro: Arts et Métiers 600 euros per week / 2000 per month available year-round
Contact: Alexis Magaro
To convert square meters to square feet, multiply 10.763 by 3.281 and for more conversions, refer to:
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!): http://www.internationalliving.com/signup.cfm
* * * * * * * * * * * *
Copyright 2003, Agora Ireland Publishing & Services Ltd.


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