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Sextant Properties, 1 rue de Stockholm 75 008 Paris www.sextantproperties.com Tel (FR): 01 70 61 27 15 PARIS BUYER’S GUIDE DISCOVER PARIS PROPERTY PRICES IN PARIS LONG LET / SHORT LET INVESTMENT EXAMPLES REGISTER YOUR INTEREST “Dear Salah, Peter and I just wanted to thank you for your help and advice in our search for a Pied a Terre in Paris. Your local knowledge has been invaluable. Margaret & Peter T.

Paris buyer's guide 2014

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We have updated our guide for people looking to invest in Paris, buy a pied a terre or who wish to move permanently in Paris

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Page 1: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

PARIS BUYER’S GUIDE

DISCOVER PARISPROPERTY PRICES IN PARIS

LONG LET / SHORT LETINVESTMENT EXAMPLES

REGISTER YOUR INTEREST

“Dear Salah, Peter and I just wanted to thank

you for your help and advice in our search for a

Pied a Terre in Paris. Your local knowledge has

been invaluable.

Margaret & Peter T.

Page 2: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

Paris is the capital and largest city of France, situated on the river Seine, in northern France, at the heart of the Île-de-France region. The

Paris metropolitan area has a population of 12,000,000 and is one of the most populated metropolitan areas in Europe.

Paris is divided into 20 different districts called “arrondissements”. The 1st district is in the centre of Paris and the other districts go round

clockwise in a snail shell shape (with the 20th district being on the outer side of Paris). The main attractions are mostly in the first eight

districts. These include the Musée du Louvre, Saint Germain des Prés, Notre Dame Cathedral, the Eiffel Tower and Les Champs-Élysées.

DISCOVER PARIS

Page 3: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

DISCOVER PARIS

Map of Paris showing the 20 different districts (Arrondissements)

MontmartrePigalle

Champs Elysees

Bastille

St Germain (latin quarter)Montparnasse

Marais

Page 4: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

PROPERTY PRICES IN PARIS

It is a well known fact that property prices have always been higher in Paris than in the rest of France, and keep soaring.

However, in 2013 the Ile-de-France region (Greater Paris) has seen a decrease of 1.7% in property prices (reference: lefigaro.fr). This

decrease in prices give an opportunity to buy at the right price.

Moreover, in central Paris itself properties prices have decreased by 1.5% last year compared with 2012 (they increased by 26.2% over

the last 5 years).

Prices vary according to the districts; there is in general a significant difference between the first 8 districts and the 12 others. Indeed, the

first 8 districts tend to have a square metre price which can vary from around €9,500 to €14,000; the 6th district is more likely to be the

most expensive but its prices have reduced by 2.3% in 2013. The square metre price in the other districts vary from €7,000 to €9,500

(source: paris.notaires.fr).

On top of that, buying an apartment in Paris can be difficult without the help of a good estate agent as there are a numerous prospective

buyers and not many available properties on the market (although most of them are sold off-market, at Sextant we have access

1,300 exclusive mandates for sale in Central Paris which are not displayed on the Internet).

Alongside the stable political situation in France, Paris’ attractiveness will never cease and that’s another reason why we believe investing

in the French capital will always be one of the safest investments in the world. Especially before prices become totally unaffordable for

most.

Page 5: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

PROPERTY PRICES IN PARIS

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Price variation of apartments in Paris in each arrondissement (in %)

Variation 1 Quarter

Variation 1 Year

Variation 5 Years

Source: Paris Notaire (land registry)

Page 6: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

LONG LET

Mostly known as the ‘bail 3/6/9’ in France, this long-term lease is a contract dealing

with the lease of residential facilities. A long-term let deals with the relationship

between the landlord and the tenant. The regulation of residential leases is made of

public policy provisions, which means that you cannot waive it.

This residential lease lasts for 9 years with a rent review every 3 years.

Both parties can terminate the rental contract by giving 3 months notice.

SHORT LET

More interesting than the long let, a furnished short let allows the landlord to review the price on a more

regular basis.

In Paris, short let means renting an apartment from 1 week up to several months. It is designed for

people who spend their holidays in Paris or for expats who have just arrived in Paris and need quick

accommodation before finding a long rental lease. It is very difficult to find a good property to let in

Paris, that’s why it usually takes a few months to find the right one.

Unlike the French Riviera which sees peak season during the summer with high holiday rental prices,

Paris is an all year round tourist location with 27 million tourists per year (source: www.paris.fr ).

Page 7: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

SHORT LET INVESTMENT EXAMPLE

Paris – 2nd Arrondissement

Price: €1,150,000

2 bedrooms

Living area: 81sqm

Private lift

Situated on the right bank of the River Seine

Short let potential:

Price: €1701/week

Annual rental income: €79,607 with 90% occupancy

Yield: 6.92% Gross

Page 8: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

SHORT LET INVESTMENT EXAMPLE

Paris – 8th Arrondissement

Price: €2,394,000

Living area: 230sqm

3 bedrooms

1880s stone building

Lift

Short let potential:

Price: €3,375/week

Annual rental income: €157,950 with 90% occupancy

Yield: 6.60% Gross

Page 9: Paris buyer's guide 2014

Sextant Properties, 1 rue de Stockholm 75 008 Pariswww.sextantproperties.com Tel (FR): 01 70 61 27 15

London office:

Linton house

39-51 Highgate road

London NW5 1RT

Tel (UK): +44 (0) 207 4284 910

Fax (UK): +44 (0) 207 4284 919

REGISTER YOUR INTEREST

Paris office:

1 rue de Stockholm

75008 Paris

France

Tel (FR): +33(0) 1 70 61 27 15

Fax (FR): +33(0) 1 44 70 00 19

Email: [email protected]

Website: www.sextantproperties.com