With all of the international buyers scooping up the high ticket distressed and non-distressed properties here in the Bay Area we thought that we would look across the pond toward Paris to see how there real estate market looks. Thanks to knowledge of Alain Pinel for some of the scoop.
Like here in the San Francisco Bay Area, Paris continues to be a sellers market (we think temporarily), and that goes for the high end market. Sure they have a lot of window shoppers in the City of Lights but many serious shoppers remain. Like here in San Francisco a bulk of the upper end buyers come from somewhere else.
In short, the domestic demand in Paris remains confined to the roughly $1.5M and $3.5M range, the entry level to what could be considered the high end in the region. Above $3.5, the large majority of the French buyers drop from the market. The foreign buyers continue to buy the royal palaces up to $100M.
We got this breakdown from our France contact, a firm by the name of FEAU,” Daniel Feau Conseil Immobilier”.
Paris Real Estate – Who’s Buying and How Much?
FEAU determined who, among the foreigners, represented the buyers and in what price range in Paris. We found the numbers interesting and these statistics may represent a bellwether for US cities like San Francisco.
• European buyers (euro zone) represent, together, 13% of the foreign buyers in Paris. Just like the French locals, they shop in the $1.5M to about $5M range and prefer the historic districts.
• The British (they are European too, although sometimes they don’t admit it) represent 10% of the buyers. The Brits hunt for the same goods mentioned above and in the same price range.
• The Swiss count for 15% of the sales (who knew the Swiss made up such a large chunk?) and they buy up to around $13M. Their economy is doing alright and they hold everyone’s money, so now they want to spend it.
• Africans have an 8% share of the Paris luxury stock and buy also up to about $13M.
• The Middle East buyers represent 12% of the total. They start their shopping at roughly $10M and go up to $100M or so.
• We, Americans, together with our Canadian friends, account for 10% of the Paris buyers according to the study. Unlike the Middle East buyers, our range sits at $2.5M to $6M, mostly in historic districts.
• Brazil and the rest of South America comprise 4%. They spend up to $6M but want the money districts.
• The Russians purchase 20% of what’s offered and they want the crème de la crème, up to about $25M.
• Finally, don’t forget about the Chinese buyers who represent 8% of all buyers in the City of Lights. They too want the best of the best, at least up to $13M.
Think that you’re ready to buy? What’s your budget?
Photo courtesy Wikipedia