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Two Plus Two: Appreciates More than Four

Volume II, Issue 43

This month, the Chambre de Notaires published the city’s property price growth for second quarter 2003 to second quarter 2004 — a growth that continues to be in excess of 10% per year (as high as 18.2% in the 10th arrondissement) and one which continues to bring Americans and foreigners to Paris to make solid investments. (Scroll down to read the report on the Paris property market!)
We’ve seen several clients this month buying properties they will be able to enjoy themselves and at the same time bring a return on their investment via short-term or long-term rentals. Our advice: buy two and three-bedroom apartments with at least two bathrooms, if you can afford it. Why? Because studio and one-bedroom apartments abound — agencies are having harder time filling their overflowing inventory, especially during a time when American tourism is down, while they can’t satisfy the demand for larger apartments. On this subject, we are listing several sample apartments that fit that description, in locations we believe are low-risk rentals with high occupancy possibilities.
Just today, one of our clients agreed to a 5,670 euro per-square-meter price on a spacious three-bedroom apartment in the 2nd arrondissement at a very bustling corner on an elevated floor and a view of some of Paris’ most “vivant” streets. Agents have advised that a property of this kind can easily rent between 2400 and 4000 euros per week. In researching some comparables, I found two apartments on Claude Nédérovique’s http://www.FranceForRent.com that fit a similar description and rent for between $4,790 per week in low season to $6,790 in high season. On Rik Gitlin’s http://www.timeandplacehomes.com, an apartment in the same immediate neighborhood rents for $4,428 Weekly. These are top-of-the-line apartments, but they just go to show that returns on the right kind of investment can be quite high. (Should you happen to contact Rik or Claude, please be sure to tell them we sent you!)
This past week, I had the pleasure of speaking with Mayor Pierre Aidenbaum of the 3rd arrondissement on a variety of subjects, the housing market one of the more important ones. He shared his thoughts and opinions on how foreign buyers are bringing up the prices. Is that good or bad? Scroll down to find out.
And big news is that FINALLY one of the French newspapers is embarking on a new adventure to publish an English language edition — long overdue!

A bientôt,

Adrian Leeds
Editor, French Property Insider
Email: [email protected]

P.S. If you’re seriously interested in learning how to make a smart property investment in France, then mark December 29th on your calendar to be in Paris. I’ll tell you why in just a few short days…but if you can’t stand the suspense, email Schuyler Hoffman at [email protected]/parlerparis to be the first to know!
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Volume II, Issue 43, October 21, 2004
In this issue:
* What a Paris Mayor Has to Say About Foreigners Buying French Property
* Meet the City’s Associations This Coming Weekend
* The French Debate the Issues — Your Chance to Participate
* Hot Off the Press: The City’s Newest English-Language Newspaper
* Paris Property Prices Still on the Rise
* Currency Exchange Update
* Hot Property: Two Bedrooms, Two Baths — a Perfect Combination
* Classified Advertising: Apartment Rentals

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Meeting with the Mayor

By Adrian Leeds

I see Mayor Pierre Aidenbaum (of the 3rd arrondissement) from time to time on rue de Bretagne, dining in Chez Omar, or officiating at local events. He seemed to be very much at the forefront of this very active community, and I discovered that he is Jewish, born during World War II when his family fled to Au Puy to escape the Vichy government, and is the head of the International League Against Racism and Anti-semitism, a devoted socialist and radically left.
I set out to learn more and was graciously invited to meet with Mayor Aidenbaum and his press se
cretary, Cyril Egner. With the assistance of Pascal Fonquernie, long time resident of Le Marais and manager of several luxury short-term rental apartments (http://www.parismarais.com), we visited with them both in the Mayor’s grand office on the second floor of the Mairie de 3ème Tuesday afternoon this past week.

We sat around a large round table, spoke in French and we posed many questions. Mayor Aidenbaum spoke openly and freely about his beloved district and expressed anger for problems that threatened the quality of life for its inhabitants.
The 3rd arrondissement is very “mixité” (like a melting pot) — almost 30% of the “quartier” is Chinese and overall very diversified. Pascal interjected that in his own building on rue Charlot, there are Germans, English, Americans, French, old and young, gay and straight, in newly redecorated apartments and 1948 rent-control apartments — very “mixité” indeed.
Mayor Aidenbaum complained of rising property prices in the district, and accounted most of it to foreigners buying property. He’s not opposed to individual buyers, but to the corporations who have tried to buy up large blocks of apartments, convert them and resell them at much higher prices, forcing out long-time residents. One recent example of this was centered around the Résidence des Arquebusiers not far from Place des Vosges.
In 2003 approximately 150 residences there (along with approximately 4000 other apartments in the city) were purchased by the American Retirement Fund WESTBROOK for billions of euros with the ambition to resell the properties within five years and net a profit of 30%. The idea was to buy large lots of apartments and then sell them off individually at much higher prices. Mayor Aidenbaum’s protectionist group vehemently protested and proposed a law to protect the tenants of such properties. In actuality, the projected gain of 30% in 5 years is only 6% (non-compounded) a year, and is less than the actual current appreciation.
I don’t fully agree with Monsieur le Mayor…all major European cities have large populations of foreigners, yet Paris is still less expensive than the others (1. Dublin, 2. London, 3. Rome, 4. Paris). So, in effect, Paris has a long way to go before it catches up with its European counterparts. Perhaps, that’s the real culprit! And interestingly enough, in the areas where most foreigners buy such as the 6th and 7th, prices have seen the least amount of increase! One must also consider that foreign buyers bring lots of money with them, contributing to a flourishing economy in the areas in which they live. Pascal noted that if it weren’t for the foreigners, he wouldn’t be earning a living!
Along the same vein, he speaks strongly on the subject of low income housing, on which is currently a hot debate. Paris can only attribute 14% of its housing as low-income when legally it has a quota of 20% to meet and it doesn’t expect to reach it before 2020! In the 7th and 8th arrondissements, less than 1% qualify while in the 18th, 19th and 20th arrondissements, more than 30% qualify as “HLM” (Habitation à Loyer Modéré). City Hall is now promoting developers to construct 25% of their housing as HLM to make up the deficit faster!
Residents fear big blocks of low income housing which could form ghetto-like environments. Mayor Aidenbaum is campaigning for a more diversified approach, mixing the apartments among the others of higher rents and hopes that the 3rd won’t get so expensive as to become just a holiday resort.
To that, I clearly agree!
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Forum des Associations Parisiennes 2004
Discover Paris Associations — at the 3rd edition of the Forum des Associations Parisiennes 2004 held October 22 and 23 from 10 a.m. to 7 p.m. on the square in front of the Hôtel de Ville.
Many different fields touching everyday life or the activities of leisure will be presented: health, services for the aged, human rights, associations of young people, women, religious organizations, sports associations and international solidarity. In October 2003, more than 400 associations had presented themselves to 19.000 visitors.
To consult the list of associations present, download the pdf listing: http://www.paris.fr/fr/citoyennete/actualites/forum_associations/assos.pdf
To consult the program of the spectacles, download the pdf listing:
http://www.paris.fr/fr/citoyennete/actualites/forum_associations/spectacles.pdf

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Public Debates (In French)
Mairie of the 3rd Arrondissement
2, rue Eugène Spuller

The Odds of the American Election, Bush vs Kerry
with Hubert Védrine
Monday, October 25, 2004, 7 p.m. to 9 p.m.

Monday, November 15, 2004, 7 p.m. to 9 p.m.
The Inequalities at Schools
with Eric Maurin

Monday, December 6, 2004, 7 p.m. to 9 p.m.
The Inequalities in the City
with Jacques Donzelot

Monday, January 10, 2005, 7 p.m. to 9 p.m.
The Inequalities and the Commercial Market
with Daniel Cohen

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France Soir to Re-Launch with English Edition
Agence France-Presse

PARIS. Oct 18 (AFP) – One of France’s best-known daily newspapers France Soir is to be re-launched with an English-language edition aimed at expatriates and businessmen after its purchase by Egyptian millionaire Rami Lakah, staff said Monday.
The paper – which once sold more than a million copies a day – has been in dire financial difficulty and is losing some EUR 500,000 (USD 625.000) every month for its current owners, the Italian group Poligrafici Editoriale.
Lakah, a 41 year-old businessman with dual French and Egyptian citizenship, was expected to spe
nd EUR 4.5 million and take over 70 percent of the newspaper’s mother company Presse Alliance in a sale to take place Tuesday.

Insiders confirmed widespread press reports that Lakah plans to set up a France Soir International, which would be published in English six times a week from next month and distributed initially in Paris, Lyon, Bordeaux and the Mediterranean Riviera.
“The project is sewn up – it’s ready to go,” a France Soir staff-member told AFP.
Lakah is already the owner of Lafayette press which has concluded a deal to publish a French version of the American magazine Newsweek. So far only one test edition has been published.
Founded almost exactly 60 years ago shortly after the liberation of Paris. France Soir saw its heyday in the 1960s when its combination of show business and crime stories won it a mass audience. Today it has dwindled to fewer than 70,000 copies sold every day.
The paper’s 100 staff – including 60 journalists – have voted in favor of the takeover but many are fearful that the international edition will come to eclipse the French title. “France Soir national must not be the poor relation of this operation.” one journalist said.
The English language edition is expected to consist of 12 pages assembled by a team of six English-speaking journalists and sell for EUR 1.5. Lakah hopes to be selling some 75,000 copies by next year, insiders said.
The entire French national newspaper industry is going through its deepest crisis since World War II, thanks to a collapsing readership, plummeting advertising revenue and mounting competition from free-sheets and the Internet.
Recently the country’s most prestigious daily Le Monde announced plans to lay off 90 staff – including 30 journalists – after non-subscription sales fell by 10.5 percent in the year to August.
© AFP
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Paris Property Prices Continue to Rise!
Prices Reported by the Chambre de Notaires (INSEE) for Second Quarter 2004
http://www.paris.notaires.fr/

Paris property prices are up 7.9% from the first quarter of this year to the second quarter! For one year, from second quarter 2004 to second quarter 2004, prices on the average in the City of Light rose 13.1% with an average per square meter of 4.316 euros.
There seems to be no end in sight as to property appreciation. The 6th arrondissement continues to lead the pack with 6,745 Euros/m² (+10.5%), followed by the 7th with 6,598 Euros/m² (+14%), the 5th with 5,932 Euros/m² (+13.7%), the 4th with 5,923 Euros/m² (+13.2%), the 8th with 5,867 Euros/m² (+11.7%), the 16th with 5,407 Euros/m² (+13.1%) and the 1st with 5,370 Euros/m² (+15.2%).
In contrast, the least expensive district is the 19th with 3,045 Euros/m² (+12.5%), followed by the 20th with 3,321 Euros/m² (+14.4%), the 18th with 3,442 Euros/m² (+15.1%), the 10th with 3,568 Euros/m² (+18.2%) and the 11th with 3,990 Euros/m² (+15.5%).
The arrondissements showing the most growth for the past year (second quarter 2003 to second quarter 2004) are:

* 10th + 18.2% (3,568 Euros/m²)
* 11th + 15.5% (3,990 Euros/m²)
* 1st + 15.2% (5,370 Euros/m²)
* 18th + 15.1% (3,442 Euros/m²)
* 17th + 14.4% (4,230 Euros/m²)
* 20th + 14.4% (3,321 Euros/m²)
* 7th + 14.0% (6,598 Euros/m²)
* 9th + 14.0% (4,206 Euros/m²)
* 5th + 13.7% (5,932 Euros/m²)
* 4th + 13.2% (5,923 Euros/m²)

As the table shows when property was at a high in 1991, to the lows of 1998 and today, all arrondissements did not evolve in the same manner. Some did not fully recover: the 16th, 8th, 7th and 17th districts, some of the most desirable and chic areas of the city. Conversely, the fall of the prices was more moderate or there was a stronger recovery in other districts: 14th, 9th, 6th, 3rd, 10th and 1st.
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TODAY’S CURRENCY UPDATE
A service of http://www.xe.com/
Subscribe for free at: http://www.xe.com/cus/

Live mid-market rates as of 2004.10.21 07:47:52 GMT.
1 U.S. Dollar equals 0.792979 Euros (0.809531 Euros last week)
1 Euros equals 1.26107 U.S. Dollars (1.23528 Dollars last week)

1 U.K. Pound equals 1.44434 Euros (1.45346 Euros last week)
1 Euro equals 0.692360 U.K. Pounds (0.688014 Pounds last week ==============================

SEEKING A MORTGAGE IN FRANCE?
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FOR SALE: FPI HOT PROPERTY OF THE WEEK
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 https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/propertyconsultation.html
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* 75 PARIS 4th Arrondissement, Rue des Francs Bourgeois
3 rooms, 80m², on the 4th and last floor, beautiful duplex. On the first level, entry, salon, dining room, bedroom, equipped kitchen, bath, toilet. On the second level, master bedroom with fireplace, bath and toilet. Parquet, wood beams. Good condition.
Asking Price: 530,000 Euros + 2% Finder’s Fee
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* 75 PARIS 1st Arrondissement, Etienne Marcel
3 rooms, 98m², in an old building, atypical, in perfect condition, two baths, double exposure, wood beams, parquet, exposed stone walls, lots of charm.
Asking Price: 545,000 Euros + 2% Finder’s Fee

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* 75 PARIS 1st Arrondissement, Opéra/Louvres/Pyramides
3 rooms, 80m², beautiful duplex on the last floor, double salon, under glass, two bedrooms, shower, bath, toilets, parquet, gas heating, cave, quiet, sunny.
Asking Price 520,000 Euros + 2% Finder’s Fee

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PARLER PARIS APRES MIDI
EVERY SECOND TUESDAY OF THE MONTH, 3 p.m. to 5 p.m.

NEXT MEETING: Tuesday, November 9th, 2004
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.
LOCATION:
Upstairs at La Pierre du Marais
96, rue des Archives at the corner of rue de Bretagne, 75003 Paris
Mtro Lines 9, 3 et 11, stations Temple, Rpublique or Arts et Mtiers
For a detail description of the past meeting and for more information
about Parler Paris Aprs Midi, visit:
https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apresmidi.html

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INSIDER PARIS GUIDES DISCOUNT FOR FPI SUBSCRIBERS
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
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RENTING AN APARTMENT IN PARIS OR HAVE AN APARTMENT TO RENT?
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, visit https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apartments

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CLASSIFIED ADVERTISING
==APARTMENT RENTALS==
For all International Living managed apartments in Paris, take a look at https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apartments or https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/longterm.html for long term apartments.
==APARTMENT RENTAL==
For rent by the week or longer

Two lovely 2 or 3-bedroom apartments — 1st arrondissement, same building. Just minutes away: the Louvre, Tuilleries, Place Vendome and more. French style gives you a true ta
ste of Paris. Fully equipped makes your Paris stay effortless, comfortable and memorable.
Complete information at http://www.youlloveparis.com


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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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SUBSCRIBE TO PARLER PARIS
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Copyright 2004, Adrian Leeds Group, LLC

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