Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Paris luxury real estate shines as London suffers Brexit blues

Paris luxury real estate shines as London suffers Brexit blues

British investor Robert Drake has bought a luxury flat near the Elysee Palace in central Paris for two million euros, lured by ultra-low borrowing costs, attractive prices and a belief in the growing allure of continental Europe for financiers post-Brexit.

The two-bedroom flat is Drake’s first overseas property investment. His purchase is a reflection of how the damage dealt to London’s global standing by Britain’s tumultuous decision to leave the European Union is contributing to sharp price rises in the French capital’s luxury real estate market.

In the ornately corniced living room of his new apartment, Drake, who is managing director of Bury Street Capital, said Britain’s relationship with Europe had “fundamentally shifted” since its vote to leave the EU in 2016.

“Whether Brexit happens or not I still think we are likely to see a transfer from the financial sector in the UK into the major European cities over the coming decades,” Drake said. “So from an investment perspective that’s a relevant point to me.”

Drake believes international bankers will increasingly seek top-end apartments in Paris, a city where strict planning rules will keep a firm lid on the supply of upmarket properties.

Paris property prices suffered under socialist president Francois Hollande, in power from 2012 to 2017. His 75% super-tax on earnings over 1 million euros reinforced France’s reputation abroad for being hostile to wealth. High earners fled, often to London, creating a glut in supply.

The election of investor-friendly Emmanuel Macron in 2017 spurred a turnaround, driven initially by French buyers. As the Brexit negotiations got messier, foreign investors increasingly lost confidence in London and set their sights on Paris.

“Paris today is the number one winner from Brexit when it comes to real estate,” said Thibault de Saint Vincent, chairman of leading international realtor Barnes International.

Knight Frank, one of Britain’s biggest real estate agents with operations across Europe, expects Paris’s prime market - the top 5% - to post further gains of 5-7% in 2020.


SAFE HAVEN?

At 19,000 euros per square metre, prime prices in Paris still compare favourably with other first-tier global cities – the equivalent in London and New York would be closer to 28,000 euros and 27,600 euros respectively.

Prime prices in Paris stand 21% above their low in the fourth quarter of 2015, Knight Frank said.

As well as British investors, Belgian, Scandinavian and Middle Eastern buyers are also turning to Paris.

“Whereas in the past overseas investors would have probably gone straight to London, suddenly they are pausing for thought for a variety of factors – Brexit and Paris being on the front foot – being the main two,” said Roddy Aris, London-based associate partner at Knight Frank.

“They see Paris as the best bet over other safe-havens. It’s portfolio diversification.”

House prices in London declined at their fastest pace in almost a decade earlier this year and will end the year in negative territory, hurt by the Brexit uncertainty and its impact on the city’s attractiveness as a global finance centre.

Last year, London lost its spot in Barnes International’s top five most sought after cities, behind Hong Kong, New York, Los Angeles, Toronto and Paris.

De Saint Vincent of Barnes International said clients in the United States faced borrowing costs of 4-7%, compared with loans of below 1% fixed for up to 20 years in France.

“We’ve got a really lively market here,” de Saint Vincent said. “In New York, Miami, Los Angeles, it’s moribund.”

Drake plans to buy more properties in the French capital - a move he acknowledged was not without risk, given the country’s tradition of high taxes.

“France has never been terribly stable in terms of its fiscal backdrop,” he said. “So there is risk there.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
×