A dynamic and attractive city by preference, Paris still attracts both investors and tenants, whether for its economic dynamism, tourist attractiveness and very advantageous geographical location. Investing in Paris is a guarantee of benefiting from a very strong demand for rent, the unique charm of real estate and high capital gains from resale. However, to make a successful rental investment in Paris, as in any other place, you need to be especially careful when choosing the location of the property.
Choosing a property location depends on several criteria, including the budget and purpose of your investment.
So where to invest in real estate in Paris? My expat helps you see things more clearly.
Criterion № 1: budget for investment in rent in Paris
Even though the health crisis has affected the fall in prices in Paris in recent weeks, the capital remains the French city with the highest real estate prices. According to the LPI-SeLoger Barometer, in 2021 real estate prices exceeded the mark of 11,000 euros / m2.
Thus, to invest in the capital, you need to plan a minimum budget of 200,000 euros, or more precisely 250,000 euros to invest in inland Paris.
On the other hand, if real estate is more affordable in Grande Couronne around Paris, this type of location can be more risky.
As a foreigner, you will also need to look closely at the terms of funding. Today, banks require a larger contribution, almost 30% of the total project (including notary and agency fees). Therefore, for real estate investments in Paris will need to count on a minimum of 60,000 euros. Notary fees make up about 7 to 8% of the net sale price of old real estate.
Criterion № 2: The purpose of your rental investment
Another fundamental criterion to consider when choosing the location of your property when investing in a Paris rental is the purpose of your project.
If your main goal is profitability, then you should know that in Paris gross margin rarely exceeds 4.5%, while other French cities, such as Marseille, can allow you to benefit from gross margin of up to 6 or 7%.
If, on the other hand, you want to invest in heritage, know that Paris is the safest city in France for this type of project. Indeed, demand there is extremely high, and the market is under constant pressure. Among students, young professionals and tourists attracted by the City of Light, there is no doubt that the Paris real estate market will continue to grow in the long run.
Finally, you can set yourself the goal of buying a pied-à-terre in Paris. In this case, you will have the exact search criteria that match your personal tastes regarding the quality of the property and its location.
How to choose the location of your property in Paris?
Therefore, the choice of location of your property in Paris will be dictated primarily by your budget and your goal.
The Paris School offers great potential for investment in heritage with more affordable prices in some areas, such as:
On the other hand, the rental profitability will be higher in Grande Couronne. Investing in a rental property in Paris also means taking into account the cities of Greater Paris, which have the advantage of high profitability. Among them are Saint-Ouen, Saint-Denis, Saint-Germain-en-Laye, Boulogne-Billancourt, Nanterre…
What you need to know before investing in remote Paris real estate
As an expat, remote investing often creates a number of obstacles.
In fact, it is not always easy to find funding in France as a non-resident. Therefore, it is better to turn to specialists and banks that tend to provide loans to French people living abroad.
In addition, you should know that the Paris market is extremely dynamic and goods are sometimes shipped in just a few hours. Therefore, you should be able to quickly make an offer when the property catches your eye, which is often difficult due to the time difference.
Finally, taxation is another point of attention when investing in real estate as an expatriate. Be sure to choose the most profitable tax system. In the case of a classic rental investment, the LMNP (Non-Professional Furniture Leasing Company) is often the most advantageous status for non-residents.
In addition, to facilitate your remote investment in real estate in Paris, we strongly recommend that you accompany a professional.
Support you for greater investment security
My expat, a company that specializes in real estate investments for expatriates, offers you, for example, secure turnkey support. From finding a property to signing a deed at every stage of your project, you are accompanied by a team of Parisian real estate rental experts. For your part, you follow your project remotely, from a dedicated platform, without having to return to France at any time.