During its first “Investment Evening”, intended for private investors interested in real estate at reduced prices, Ikory Properties sold 17 lots and achieved a turnover of 9 million euros.
On Wednesday, June 22, the first Investment Evening took place in the Parisian Salons Fouquet. This new concept of private real estate sales launched by Ikory has allowed many investors to choose from 53 properties (apartments, premises and buildings) at discounted prices. The first test transformed for Ikory Properties, the Ikory pole dedicated to sale by lot, which recorded a total turnover of €9 million at the end of this evening, with 17 lots sold.
Private sale for revaluation of investments in old housing
The volume of sales achieved during the “Investment Night” shows that investors prefer properties with investment strategies that have evolved since the health care crisis.
A key player in the residential real estate market, Ikory has been able to understand and anticipate a wide range of investor needs, offering products that meet the evolution of this demand. Each investor was able to find objects that correspond to his vision of investing: tax exemption, yield or realization of capital gains in the long term. By launching these Private Sale Investment Evenings applied to the real estate sector, Ikory wants to redefine investment in older residential properties and, in particular, highlight the interest of long-term occupied properties.
The advantage of occupied housing for investment
The purchase of an already inhabited old house attracted special attention of visitors. They offer many benefits, such as the possibility of receiving a significant discount depending on the length of the rental. In addition, these properties are usually ideally located (many plots in inner Paris), in well-kept and quality buildings. They also benefit from a solid tenant history in place. As a guarantee of quality, most of the products offered on the evening of June 22 come from funds or institutional investors who are rationalizing their portfolios by selling several assets.
Thus, for equal quality, occupied housing is sold for an average of 8-15% less, depending on the term of the lease agreement. The discount reached even 27% for cases of long-term rent, in which elderly people live.
For example, a 70 m2 Parisian apartment with a terrace and parking in the 15th arrondissement, in the heart of the Convent district, was offered for €675,000, or €9,286/m2, thanks to a temporary discount of 8%. Similarly, in the 18th arrondissement, apartments over 65 m2 were heavily discounted (from 22 to 27%), allowing them to benefit from a price per m2 of less than €8,000, which is quite rare for rue Marcade. which fixes an average price of 10,500 euros in 2022 (Approximate price per m2 seloger.com).
Purchase of group plots or commercial premises, search for rental income
Attracted by the possibility of this private sale of real estate, some participants rushed to reserve small areas or commercial premises for a high profit strategy. Unsurprisingly, the property located in Cannes left clustered plots at the beginning of the evening, mostly reserved by pure investors who took the opportunity to invest in the dynamic market of this city of Congresses, where rent control is not practiced. Commercial premises located in Agnieres-sur-Seine in Haute-de-Seine also quickly found buyers, given their location and estimated gross income (between 4 and 5.8% depending on the area).
For example, by investing in an 18m2 studio in Cannes for just €140,000 (thanks to a 2% discount), an investor can expect a gross return of 8.8%, much higher than renting in Paris.
Invest in new to take advantage of tax exemption schemes
In addition to most of the older properties, several new parcels of land also attracted people looking for tax-exempt products. For example, the four proposed apartments, some of which are located in Pinella, were quickly booked. Located in Bondi, Seine-Saint-Denis, and Montesson, in Yvelines, these plots, from studios to 4-bedroom apartments, offer potential yields of 3.8 to 5.9%.
With an additional discount applied only for one evening, it was possible to invest in a new 3-room apartment (to be completed early 2024) of 66 m2, with a 5 m2 terrace, for €256,070, just 8 km north-east of Paris.
“This first private sale allowed us to meet investors with very different profiles. From the first-time investor looking to explore Stone, to experienced families coming to complete an already solid rental portfolio. And all ages says Waqas Maqbool, director of Ikory Properties.
At its first Investment Night, Ikory was successful: awakening investors’ interest in this new way of buying and attracting new customers, sometimes newbies, but ready to embark on the adventure of real estate investing.