ENTR

05/10/2022

The association of Paris notaries has released its latest figures on how Paris real estate performed over H1-2022.

A couple of noteworthy data points stand out in this report:

👉🏻 The level of activity in Paris has been very high with over 40,000 properties sold over the last 12 months – this is the highest annual transaction volume for the past 20 years

👉🏻 Prices are on the rise again approaching €10,600/sqm end June and expected to reach c. €10,700/sqm by end October

👉🏻 The two most expensive districts (6th and 7th districts) have enjoyed the largest annual price increase: +5.4% for the 7th district and +7.8% for the 6th district as buyers are looking for “safe haven” properties

Members in ENTR Paris are reaping the full benefits of their real estate investment strategy focused on the prime districts of Paris. 💶

Attractive exchange rates, high level of savings and a desire for safe investments in a volatile environment provide solid tailwind for the Paris real estate until the end of the year.

04/10/2022

Looking for investment opportunities to protect your wealth against inflation?

Discover the top 5 most common misconceptions about real estate investment in Paris shared with l’Union des Français de l’Etranger

👉🏻 Rental income must at least cover the mortgage payment for the investment to be profitable

👉🏻 In a period of market volatility, the most expensive districts are the first to see their prices drop

👉🏻 It is better to borrow over 10 years than 20 years to save on the interest costs

👉🏻 Rental incomes are always heavily taxed

👉🏻 A buyer is better off when the agency fees are paid by the seller

All these assumptions are wrong and can prevent you from making the right decision for your wealth. 💸

14/09/2022

As one of the most popular cities in the world, Paris has a very tight rental market where demand for tenancy always exceeds the availability of rental properties.

The supply of rental properties changes significantly from one district (or "arrondissement") to another and this results in varying degrees of tightness in each local rental market.

Naturally real estate investors will be curious to know in which part of Paris the rental properties are the most scarce.

The ENTR team has calculated the availability of rental properties in each district and this has led to a couple of useful observations:
👉🏻 Only 1 out of 3 properties in the 7th and 8th districts is available for tenancy – the high rate of home ownership and the large number of secondary residences in these prime districts restrict the pool of rental properties.

👉🏻 Over 2 out of 3 properties in the 19th and 20th districts are used for tenancy – the quasi-absence of secondary residences in these districts and one of the lowest rates of home ownership in Paris lead to this high supply of rental properties.

This large difference in supply between districts is one of the explanations as to why investors benefit from higher rents when their properties are located in the center of Paris. 💸




See the graph below for the data on all the districts of Paris.
👇🏻

12/09/2022

This is the time of the year again when students get ready for another school year.

Home to universities, engineering and business schools ranking among the most prestigious in the world, Paris welcomes over 715,000 students making it one the largest higher education hubs in Europe. 👩🏼‍🎓👨🏽‍🎓

Properties in close proximity to one of these top schools or universities in Paris attract a 10% to 25% premium over the average price in their areas. 💶

In addition, students (and their parents) value the convenience afforded by these properties and are willing to pay a higher rental rate for this.

ENTR has mapped out where real estate investors in Paris should look to invest to benefit from this school proximity premium.

Partly due to their long history, most of these high schools and universities tend to cluster in a limited number of locations in Paris: the 5th, 6th and 16th arrondissements.

👉🏻 5th arrondissement is the “Quartier Latin” and the historical heart of academic excellence in Paris with a number of renowned institutions such as Lycée Louis-Le-Grand, Lycée Henri-IV and Panthéon-Sorbonne Université.

👉🏻 6th arrondissement hosts several prestigious institutions as Mines Paris, Université Paris Cité and Lycée Saint-Louis and top-ranking private schools such as Collège Stanislas.

👉🏻 16th arrondissement, as befits one of the wealthiest districts of Paris, is home to several elite schools such as the private Catholic schools Saint-Louis de Gonzague and Saint-Jean de Passy and the institution of higher education Université Paris Dauphine.

So where would you like to invest?

08/09/2022

3 key trends supporting prime real estate in Paris for global real estate consultant Knight Frank:
👉🏻 Lack of new supply continues to support price
👉🏻 Private equity funds are targeting Paris’ prime assets an inflation hedge
👉🏻 Major infrastructure projects (Olympics and Paralympics 2024 and Grand Paris Project) reshaping mobility and space in the capital

Worth noting that the 6th, 7th and 8th arrondissements are specifically targeted by sophisticated investors looking for “safe-haven” investments with attractive risk-return profiles.

Members in ENTR have also a seamless access to real estate in these highly coveted districts of Paris and gain an edge to navigate the current economic volatility.

The city of Paris is shining bright, its relative value, host of new infrastructure projects and safe–haven status are boosting its appeal.

06/09/2022

Real estate investors prefer smaller properties, like a studio or a 1-bedroom apartment, because they generate a higher rental revenue per square meter than larger apartments. 💸

If you are looking to buy this type of property in Paris, you want to know where they are easy or hard to find across the French capital. 🔎

ENTR has reviewed data about the mix of primary residences in each of the 20 districts in Paris and calculated the proportion of studio and 1-bedroom apartments in each of them.

Here are a couple of observations from this exercise:
👉🏻 Almost 2 out of 3 properties in the 2nd and 18th districts are either a studio or a 1-bedroom apartment – the highest proportion in Paris. It is worth noting that the 18th district has the largest number of properties among the 20 arrondissements.

👉🏻 On the other end, less than 45% of the properties in the 8th and 16th districts are either a studio or 1-bedroom apartment – not unexpected in these two affluent residential districts where the 19th century Haussmann architecture favors large family apartments.

Two approaches can be followed here.

1️⃣ One approach is to target the lower hanging fruits in the 2nd and mostly 18th district: the larger supply of smaller properties means they are easier to find but equally there is more competition when the investor wants to rent them or sell them.

2️⃣ The second approach pursued by ENTR for our members is to leverage scarcity value in the districts where the smaller properties are rarer. They will be harder to find but they will generate a superior rental for the more tenacious investors.

Which investment approach do you prefer?

02/09/2022

Paris ranks as one of the largest and most active real estate markets in Europe.

Going beyond the obvious, an astute real estate investor will dive deeper into the distinct characteristics of each of the 20 districts (or “arrondissements”) in the French capital.🔎

ENTR looked here at the proportion of primary vs. secondary residences in each arrondissement and made a couple of observations:

👉🏻 On average 10% of the residences across Paris are used as secondary residences

👉🏻 The core 1st to 9th arrondissements have a much higher proportion of secondary residences – 25% and above for the 6th, 7th and 8th arrondissements

👉🏻 With the notable exception of the 16th arrondissement, all the other districts have less than 10% of secondary residences – going down to 2.6% in the 20th arrondissement

What does it mean for investors? 🤨

These numbers show that buyers looking for a secondary residence in Paris are overwhelmingly attracted by the core 1st to 9th arrondissements.

These core arrondissements have thus a broader pool of potential buyers going well beyond the traditional buyer looking only for a home to live in.

A broad and diversified range of potential buyers creates higher market liquidity.

And higher market liquidity is crucial for real estate investors to easily exit their investments whenever they want.💸

Now that you know where liquidity is higher, you can better decide where to invest within Paris. 🎯

31/08/2022

The strong capital growth in the prime real estate segment reported in this CNBC article is in line what the ENTR team has seen on the ground in the core districts of Paris over the past few months.

The prime properties curated by ENTR in Paris for our members have actually registered a double-digit price appreciation over the past 12 months.

👇🏻

“If you’re in the market for capital growth, consider casting your eyes to the ever-alluring cities of Western Europe

Price growth in Europe’s prime real estate markets – categorized as the top 5% of the market in value terms – has been among the highest in the world in the past year, according to Knight Frank. […]

Elsewhere, property price appreciation has been strong this year across the high-end real estate markets of Edinburgh (11.2%), Dublin (10.2%), Zurich (10.2%) and Paris (8.9%).

The continued rise of the region’s top cities come as growth rates slow across the global property market amid rising interest rates and a darkening economic outlook. However, Knight Frank said the slowdown has not yet translated to property prices – with the luxury sector proving particularly resilient”

Whether you're on the hunt for a vacation property or a store for your cash as stocks somersault, Europe has a host of compelling second home destinations.

30/08/2022

This post closes our series on busting myths about Paris real estate

👉 Myth # 5: real estate agents call international buyers first when there is a good opportunity

Walking down the streets of Paris on holidays, it is tempting to pop into a real estate agency to give your details and explain how seriously you want to buy a property in Paris.

You are likely to receive a time-honored response from the agents: “Great. We will contact you when we have something that suits you”.

And indeed, you will receive emails listing opportunities as exclusive or time-limited.

Strangely the asking prices are always a lot higher than for the past transactions in the same street.

You also note that these properties come with a catch: it is a ground floor unit, with a weird floor plan or a terrible view...

You may then wonder where are the good deals? 🤨

The answer is that good deals in Paris are very often done off-market, through informal channels and without publicity.

When a good opportunity comes, agents contact in priority fast-moving buyers with a track record so they have higher chances to get their commissions quickly.

It is hard for potential buyers living hundred or thousand kilometers from Paris to compete.

Members in ENTR benefit from the on-the-ground network built by the ENTR team over the years and they gain access to off-market properties in Paris at the right price. 🎯

29/08/2022

Let's debunk another myth today on Paris real estate!

👉 Myth # 4: Prices in the most expensive parts of
Paris go down first when market is under pressure

End of Q1-20 (before any effect from COVID), average price for a property in Paris ranged between €9,000/m2 in the 19th district and €13,750/m2 in the 6th district.

Let's fast forward 2 years to Q1-2022.

The average price in the 6th arrondissement has
increased to €13,820/m2. ⤴️

On the other hand, the average price in the 19th
arrondissement has dropped to €8,830/m2. ⤵️

In a volatile period, investors follow a flight-to-quality approach that actually favors the central prime district at the expense of the outer areas.

This is why ENTR focuses exclusively on these prime districts to grow the real estate portfolio of our members with confidence.