Favoured Real Estate Hotspot: Paris, Drawing Young Business Innovators
Scorching the 18th: Paris' Hottest Real Estate Market
By Christine Lejoux Head of Real Estate Service
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Savvy tech whizzes in their mid-forties are causing a stir in the Paris real estate scene, sending prices in the 18th arrondissement soaring by a whopping 35% since January. These lucky parents of two or three kids are now the primary buyers, snatching up luxury properties in this once-tranquil Parisian district.
"They" are the new family clientele of the 18th arrondissement, Richard Tzipine, CEO of Barnes, tells us. "By luxury, we mean an average price per square meter of 14,000 euros, compared to a little less than 10,000 euros on average in Paris", he explains. So far this year, the 18th arrondissement has seen the sharpest increase in property prices compared to other areas across Paris, with an average increase of only 2%. Barnes puts the average price in the 18th arrondissement at nearly 16,500 euros per square meter, making it more expensive than the historic 5th, 8th, and the first trio of Parisian arrondissements, whose prices range between 13,800 and 16,000 euros per square meter.
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Cribs in the millions
Contrary to its flashy neighbors in the 6th and 7th arrondissements, where the square meter costs between 18,700 and 20,000 euros, Marie Beauchet, director of Barnes agencies in the 18th arrondissement, notes an absence of "hordes of foreign buyers" seeking a pied-à-terre in Paris. Instead, these affluent buyers, as Beauchet puts it, have "a lot of money" and are drawn to the 18th arrondissement's quieter, more intimate charm, favoring establishments that offer a "village-like atmosphere," small eateries, corner stores, and a cozy vibe. With views like the picturesque avenue Junot and the rue Lepic offering breathtaking panoramas of Paris, these entrepreneurs and families are snapping up properties for prices deemed "astronomical" by Beauchet, ranging from 2.5 million to 8.5 million euros.
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Among its latest sales, the agency has offloaded a 2,860 square foot, three-story house with six bedrooms and a garden for nearly 6.5 million euros. The buyers are, like the sellers, French. "I'm in the last remaining 'village gaulois' of Paris," laughs Marie Beauchet. A village that "middle-class families are also attached to, but where they can no longer afford to buy larger properties due to the evolution of prices and still high mortgage rates," she laments.
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Research into the individuals behind this wave of tech-driven demand for luxury property in the 18th arrondissement remains scant. While popular tech events in Paris, such as VivaTech, shine a light on various French and international tech luminaries, there is no definitive evidence linking them to the real estate market. Other well-known figures in Paris' tech scene, such as Delphine Moulu (co-founder of Femtech France), Jeremy Grandillon (CEO of TC9), Richard Malterre (CCO of Enchanted Tools), and Axel Dauchez (founder of Make.org), have yet to be directly associated with shaping real estate trends in the City of Lights. Further investigation into the local real estate market and its influencers is necessary to identify the big-money players fueling the surge in luxury property prices.
- Richard Tzipine, CEO of Barnes, identifies the new clientele of the 18th arrondissement as savvy tech whizzes with families who are the primary buyers of luxury properties, causing prices to soar by 35%.
- By luxury, Tzipine means an average price per square meter of 14,000 euros, significantly higher than the average in Paris.
- This year, the 18th arrondissement has seen the sharpest increase in property prices compared to other areas across Paris, with an average increase of only 2%.
- Barnes puts the average price in the 18th arrondissement at nearly 16,500 euros per square meter, making it more expensive than the historic 5th, 8th, and the first trio of Parisian arrondissements.
- In contrast to its flashy neighbors in the 6th and 7th arrondissements, the affluent buyers in the 18th arrondissement are drawn to its quieter, intimate charm and prefer establishments that offer a "village-like atmosphere."
- Prices for properties in the 18th arrondissement are deemed "astronomical," ranging from 2.5 million to 8.5 million euros, making it a hot market for investing in real estate, home and garden, and personal finance.
