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
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
×