Now more than ever is the time to invest in Parisian real estate! We are in the midst of the perfect storm of a weak euro, low French interest rates and stable yet undervalued property prices (for the moment.)
From its low point last year to now, the dollar has strengthened by at least 23% against the euro. The last time the dollar traded this high against the euro was in 2003.
Euro to US Dollar rates in April 2014 went from 1.38 to today’s 1.08 and many analysts are predicting it’s on the way to a 1 for 1 exchange.
The Euro to British Pounds rate went from .82 to .73, also a major swing in favour of pound sterling buyers.
FRENCH MORTGAGE RATES
Twenty year fixed rate French mortgages went from 4.20% annually last year to 2.55% - an enormous drop.
While the 2014 French Notaire’s Parisian real estate price report stated an overall drop in price of 2.1%, we didn’t see much reduction in price for the typical apartments that our clients tend to select (well located, lots of light, logical layout, etc.) for the smaller studio and one bedroom apartments.
However we did see lots of price negotiation in the larger apartments. The last few weeks have seen a change due to the weak euro and low interest rates. Now even the larger apartments are selling much faster and more often at selling price. All this said, we strongly feel that Paris apartments remain undervalued compared to New York and London.
Contact us today with your project and learn how to take advantage of these unusually favorable market conditions!