Can Paris maintain its charm on Chinese property buyers in the midst of coronavirus pandemic?
- Prices of prime residential property in Paris rose 6.4 per cent in 2019, second only to Berlin in Savills’ World Cities index
- Chinese buyers are among top investors as foreigners account for nearly one in every six transactions in the City of Light
Chinese investors have been picking up property in Paris in recent years, a decision that reaped handsome rewards as prices appreciated faster than most cities in Europe, bar one. The arrival of coronavirus could temper optimism this year.
Prices in the City of Light climbed 6.4 per cent last year after a 4.5 per cent gain in 2018, according to the Savills’ World Cities Prime Residential Index that tracks 16 cities in Europe, Asia, Middle East and Americas. Berlin topped the list with more than 8 per cent advance, while prices in other cities either eased or declined.
Overseas investors accounted for 16 per cent of property transactions in 2019, up from 15 per cent a year earlier, according to Savills, citing data from Paris notaries. Top foreign buyers included Chinese nationals, it added.
“The coronavirus aside, Paris is one of the top cities for cross-border buyers in 2020 due to several fundamentals,” said Georg Chmiel, executive chairman at property portal Juwai IQI. “There is significant new infrastructure development with the Grand Paris Express, price growth is favourable.”
Britain’s exit from the European Union promises to boost demand as organisations relocate their offices from London, while the build-up to the 2024 Summer Olympics in Paris is also seen aiding price appreciation, Chmiel said.
While French developers are offering products that appeal to buyers from China, it’s likely that the response this year will be different as the coronavirus pandemic triggers travel alerts and lockdowns across Europe and hurts global financial markets.