Paris is the most attractive city for the ultra-rich


Second crap! World’s leading tourist destination, Paris is also the favorite city of wealthy property buyers, according to the annual ranking of the Barnes network, which surveyed the ultra-rich (whose assets exceed 30 million dollars, or more than 27 million euros, and who are a just under 400,000 worldwide). This unexpected attractiveness contrasts with the rather gloomy atmosphere that currently surrounds the City of Light and more generally the “anti-rich” actions which are multiplying in France. “Our customers don’t talk about it. This atmosphere does not affect them at allsays Richard Tzipine, Vice President of Barnes.

Stable in 2019 and 2020, acquisitions at more than 3 million euros climbed 43% in 2021 and 14% in 2022.These acquisitionss are no longer found only in the 6th, 7th, 8th or in the Marais but also in the 10th, 19th and 20th which are the new fashionable districts. The high-end market extends to all the arrondissements, each of which has its own Golden Triangle!», Analyzes Richard Tzipine. This is the case of the unexpected 9th. It is there, in the Saint-Georges district precisely, that a large apartment was sold for more than 75,000 euros per m². A record for 2022!

Paris can count on the return of French expatriates but also that of foreigners, starting with the Americans who benefit from a favorable exchange rate. “A new clientele has appeared: young high-tech entrepreneurs, aged 35-40, attracted by the north of Paris and in particular Montmartre, as well as the east of the capital.“explains Richard Tzipine.

10% price drop in 2023?

But, like the traditional market, luxury will also see signs at best of a slowdown or even a drop in prices in Paris. “We anticipate a drop of 5 to 10% in prices. The market will be tighter“, anticipates Richard Tzipine. Supply is swelling and demand is weakening due to the rise in credit rates and the cost of work, in particular energy renovation. A figure to illustrate this new deal: 48. This is the number of “flash” sales (made in less than 72 hours) made by the Barnes network in 2022. About half as many as in 2021 (92)! “Buyers are more demanding but also more reasonable on acquisitions under 3 million eurosconfirms Thibault de Saint-Vincent, president of Barnes.

Paris is not only the new darling of the ultra-rich but also the only European representative of the top 6. Regularly appearing in the top 3, London has returned to the ranks and occupies 7th place in the ranking. The United States places three cities in the top 5: Miami (2nd), New York (3rd) and Austin (4th). Although dethroned by Paris, the Florida city attracts an increasingly young population. “They had planned to stay 3-6 months and eventually found out that the weather is great all year round and real estate prices are half the price of New York despite having gone up 50% in 3 years», Decrypts Thibault de Saint-Vincent.

This house of 1390 m², at the edge of the water, in Miami, was sold for more than 36 million euros by an American to a Colombian. Photo credit: Barnes

Dubai, from 47th to 5th place

Photo credit: Barnes

But the best performance of this list is that of Dubai, which made a sensational entry into the top 5. The largest city in the United Arab Emirates, very popular with Russian customers, climbs 42 places! “It’s the city of the futureannounces Thibault de Saint-Vincent. The city has been transformed in half a century. It is made up of 90% expatriates, which allows newcomers to create a social life more easily.“. Add to that an attractive tax system: resident expatriates are exempt from income tax, VAT is only 5% (20% in France). Even the tax on profits, although on the rise, remains very attractive (9% for profits above around 100,000 euros. As for investors, they can expect rates of return of between 8% and 12%.

Downtown is a pedestrian, young and dynamic district of Dubai where exceptional real estate costs more than 15,000 euros on average. Photo Credit: Sophie James/Sophie James – stock.adobe.com



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