Foreigners in Paris
France has given the world so much that almost every local toponym instantly causes an avalanche of associations with historical events, literary characters, subjects of cinema and painting, brands of products and wines, some of which have become household names, for example, champagne and cognac. It is easy to fall in love with this incredibly beautiful country with a pleasant climate and a high quality of life. It is not surprising that many foreign guests decide to make France their second, and sometimes first, home and acquire real estate here.According to research, about 6% of residential properties in France belong to foreigners, mainly British, Belgians, Portuguese, Italians. Over the past decades, citizens of the Russian Federation have also accounted for a significant share among buyers of real estate in the country, and not only in the elite segment. The peak of the activity of super-rich buyers from Russia in the French market occurred in the noughties and early tenths. After 2014, their number began to decline.
Can Russians, Belarusians, Ukrainians buy an apartment in France today?
Due to the sanctions against the Russian Federation that followed the outbreak of hostilities in Ukraine, as well as counter-sanctions, it has become much more difficult for Russians to conduct a deal to acquire property in EU countries. However, in France, despite certain restrictions, it is realistic to pay, you can even transfer funds directly from an account in a non-sanctioned Russian bank to a notary's account in France (in the case of an apartment purchase transaction, the amount is transferred not directly to the seller, but to the notary's office). Many notaries who have been working with agencies for a long time continue to cooperate and accept payments from citizens of the Russian Federation, provided that the source of the origin of the money is confirmed.
It should be noted that today it is easier to pay off when buying a home on the primary market. In this case, payments are made fractional, with only the first of them to the notary's office, and the rest to the developer's account. Companies tend to be more loyal. In addition, the transaction amounts for step-by-step payment are smaller and it is easier to coordinate them.
Experts of real estate agencies in France note that Russians and Belarusians now practically do not buy so-called "holiday homes", that is, housing for a vacation or a seasonal stay. (Recall that there is no direct air service between Russia and France, and the processing of Schengen visas has become more complicated). Today, when Russian-speaking clients turn to consultants, it is most often about moving. Despite the fact that the D visa is not given to citizens of the Russian Federation as easily as before, there are working options for immigration.
Citizens of Ukraine who come to France immediately receive a status that is equivalent to a residence permit. Thus, being residents, they can immediately open an account with a local bank and make any transactions.
To open an account, Russians and Belarusians must first obtain a residence permit of the republic (or a visa D, which is equivalent to a residence permit).
Residence permit in France
The most common type of residence permit is a Visitor's visa for financially independent persons, which is issued for a year with the right to extend. Digital nomads, pensioners, as well as people with passive income can count on it. The availability of finances must be confirmed. You must have either an amount of 25,000 euros (per person) in your account, or a monthly income of 1,500 euros plus 15% of this figure for a spouse and 10% for a child. If the family expects to obtain permanent residence and citizenship in the future, it is necessary to live in the country for most of the year and become a tax resident. If there are no such plans, then you can stay in France for any amount of time and continue to pay taxes in your country - it will be less expensive. To obtain a residence permit, it is required to confirm that you have rented (for a year or more) or bought an apartment here.
In addition to the "Visitor's Visa", the "Passport-talent" program is open. According to it, a residence permit is issued to qualified and highly qualified specialists, researchers, entrepreneurs, people of creative professions, athletes.
A residence permit in France can be obtained by investors investing from 300,000 euros in tangible or intangible assets, as well as businessmen opening a startup in the country or acquiring a ready-made company. The applicant for residency must invest at least 30,000 euros in his business, as well as create jobs.Note that the very first stage for obtaining a residence permit is the registration of a national D visa at the French consulate in your country.
There are enough ways to become a resident of France and find your place here. Often, a talented child (for example, having success in sports, art or science) becomes the locomotive that helps a family overcome administrative barriers on the way to obtaining a residence permit.
Types of real estate
One of the features of France is the diversity that is expressed in the landscape, architecture, lifestyle of people. Each region has its own unique look, dictated by nature, history, traditions, and such a universal concept as home means completely different in different parts of the country.
For example, here you can become the owner of a luxury modern villas on the Cote d'Azur, "modest" lock in the valley of the Loire River, that very romanticized house in Provence surrounded by lavender fields, a cozy chalet in the mountainous Chamonix, a solid fortress house in Brittany on the Atlantic coast, a mansion in Normandy just a couple of hours drive from the capital, a small studio in the historic center of Paris or a spacious modern apartment in the suburbs Bordeaux.
The paradox is that even in two neighboring places, the way of life can be fundamentally different. For example, in Nice, life is in full swing all year round, and nearby Saint-Tropez and Ramatuelle "fall asleep" out of season. These nuances must be remembered when choosing a house, both for your own residence and for investment.
The real estate market in France is mainly secondary housing. The country is extremely careful about the heritage accumulated over two thousand years, so there are not so many places for building. Nevertheless, the construction of new quarters is underway, and the quality of construction, as experts note, is high. The fact is that a ten-year guarantee from insurance companies is given for new housing in France, so developers are interested in the result.
Buying a home on the primary market is often preferable for financial reasons. Despite some difference in price, new apartments are about 15-20% more expensive than the options from the owner, these costs are compensated for in about six years due to lower operating costs. In addition, when buying from a developer, you save on agency fees and notary fees (about 10% in total). Note: notary fee in the primary market is reduced by 2.5%.
There are other advantages of new housing - modern houses have more functional apartment layouts, and districts, as a rule, are provided with everything necessary for family living. For example, a new type of neighborhoods began to appear in the Paris suburbs, in which much attention is paid to infrastructure, shops, schools, playgrounds, parks, that is, in fact, the urban planning concept of the Soviet microdistrict was discovered in France.
Real estate market trends
Against the background of the global economic crisis of 2008, housing prices in France fell by an average of 4%. In the period from 2010 to 2011 there was a rapid growth, but it did not last long. From 2012 to 2015, prices per square meter went down again due to weak growth of the French economy, higher taxes and stagnant wages.In four years, apartments and houses have fallen in price, and buyers have gradually become more active. During 2016, despite the fact that housing prices almost did not increase, the number of sales went through the roof. The bottom of the market was reached, and prices began to rise. By 2019, the Association of Notaries of France reported that the number of transactions for the sale of houses for 2 consecutive years exceeded 950,000. By April 2021, sales of houses in France for the first time exceeded the 1 million mark (1,068 million objects were sold in a year). In general, a record number of transactions were registered in 2021 - 1.18 million.
During the coronavirus pandemic, there was no predicted price decline or slowdown in the market as a whole (only point-by-point and in certain periods). People continued to purchase housing, including remotely, taking advantage of record low rates (1.05% in August 2021). Many people chose apartments taking into account the new realities. According to research, sales of lots with a larger area with terraces and balconies have increased. In addition, in France, as in many other countries of the world, residents of cities rushed to the province. It is more comfortable to work away from megacitiesremotely. In addition, the cost of real estate there is significantly lower (if we are not talking about the resort area) for the same budget, you can afford to have a garden and 1-2 rooms more.
According to experts of the French market, among the beneficiary regions of the Paris exodus are Brittany and Normandy, located in the west and northwest. Many preferred the southern destinations, first of all Bordeaux and Nice, as well as Biarritz, Montpellier, Perpignan. Small comfortable cities with convenient transport links, such as Tours, Nantes, Rennes, Chartres, Orleans, Lille, were also in demand. In all these places, real estate prices were actively growing.
According to the statistics of the Association of Notaries of France, prices on the secondary housing market from the first quarter of 2021 to the first quarter of 2022 increased in almost all regions of the country. Houses outside the Ile-de-France (Paris region) have risen in price by 10%, apartments by 7.8%. In Ile-de-France, the indicators were more modest: an increase of 5.7% for houses and 0.9% for apartments.
The latest research data shows that in September-October 2022, the cost of real estate in cities (except Paris) and rural areas of France continues to grow, but at a slower pace. Thus, according to the report of the Federation of Real Estate Agents Fnaim, in October, the rise in prices on an annualized basis amounted to 6.7%. For comparison, in April it was higher than 8.2%. In the capital, housing prices decreased by 2.7% in annual terms and the downward trend is likely to continue.
Cooling in the French market was predicted by the professional community in the spring. It may be associated with an increase in the cost of living under the influence of inflation (a record 7.1% in October), as well as with the general situation of economic uncertainty, which is global in nature. In addition, the policy of banks to issue loans has tightened. Mortgage rates increased from 1.84% in January this year to 2.65% in October and continue to grow.
Another factor that has an even more significant impact than the increase in rates is the introduction from January 2022 of stricter requirements for those wishing to take out a housing loan (the borrower can borrow funds for a maximum of 25 years, and the amount of the monthly payment should not exceed 35% of the salary). It should be noted that today Russian citizens are not given a mortgage in France (previously it was practiced, it was enough to confirm the existence of a stable salary in a good company).
Paris region
The Paris region, which includes the capital and surrounding territories, is home to about a quarter of the total population of France. This is not only the original historical region of the country, but also the political, economic, and cultural center of the republic.
The trend to reduce the cost per square meter in Paris, the city with the most expensive real estate not only in France, but also in southern Europe as a whole, is quite understandable. There is an oversupply in the market of the French capital caused by the outflow of residents to the province after the pandemic, the ban on renting apartments for short-term rentals through platforms such as Airbnb, as well as plans to tighten the requirements for energy efficiency of housing. Starting next year, only apartments with an energy consumption class of at least G and F. will be available for rent.
In this sense, Paris is more vulnerable compared to other cities in France, as many buildings are built in the Ottoman style of stone with low insulation and sometimes with windows having single glazing. Owners of such housing often prefer to put their apartments up for sale, instead of investing in repairs. Similar offers went on sale en masse this year.
The authorities of Paris prevent speculation in the market in the interests of local residents, who rightly believe that the capital of France is not only a place for tourists (more than 45 million guests annually), but also a city in which the population should be comfortable.
Despite the fact that the laws adopted by the mayor's office have made it virtually unprofitable to rent apartments, especially small ones, there are always enough people who want to buy housing for themselves, as well as those who can afford to buy real estate and not rent it out.
Despite the fact that the market is stagnating in Paris itself, the Paris region is promising for real estate investments. It is worth considering both the near suburbs 30 minutes from the capital, which already have a metro, and the far suburbs an hour away. In these areas, the subway will appear in the coming years.
In the departments of the Paris region, such a decline in real estate prices as in Paris itself has not yet been observed. In the Upper Seine for the year, prices decreased by 0.3% (to 7,296 euros per sq. m.). In Val-de-Marne, growth slowed down, in Yvelines a decrease of 0.3% was recorded over the past two months (to 4615 euros per sq. m.), in Essonne prices remained at the same level (3291 euros per sq. m.). In Val-d'Uaz, the growth since the summer was 0.2% (+3.4% per year), and in Seine and Marne 0.8% (+ 5% per year). Saint-Saint-Denis is still the leader with an increase of 2.9% for the year (4325 euros per sq. m.).
According to experts, the Paris region is promising from the point of view of investments due to large state infrastructure development projects, as well as the formation of clusters of competencies. Among the latter are the financial center in Defiance, the pharmaceutical sector in the Ruey Malmaison area in the Upper Seine, the high-tech and business cluster Paris-Saclay, including the direction of nuclear physics, logistics in the Orly-Rangis area, aviation near Bourget, medical in the south-western suburbs. Metro and tram lines will be carried to all these places.
One-room apartment today an apartment in a new complex in the center of the business district of Ruey-sur-Seine (Ruey Malmaison) near the planned metro station "Ruey" can be purchased for 285,000 euros.
It should also be noted that in the Paris region, when choosing real estate, it is worth taking into account administrative nuances. Legislation in neighboring departments, for example, regarding the rental of apartments, may differ radically.
From the Cote d'Azur to Saint-Etienne
The Cote d'Azur does not lose its palm among the most popular destinations. All the climatic delights have converged in this region: in one day you can swim in the sea and go skiing, because the lifts are only an hour and a half drive from the beaches.
The average cost of an apartment in the most expensive city on the Cote d'Azur Nice is 5000-6000 euros per sq. m.
Three-room an apartment in the elite quarter of the "Liberation" in the center of Nice is offered for 580,000 euros.
In densely populated Marseille, the second most populous city in France, apartments cost an average of 2810 euros per sq. m. The average budget for buying a house in Marseille and the surrounding area is 379,000 euros.
If we talk about the elite segment, it's not for nothing that the region is considered one of the world's centers of luxury concentration. The cost of villas on the coast starts from 800,000 euros and can reach up to several million.
Real estate prices in Bordeaux have risen after the launch of a high-speed railway line, which attracted Parisian buyers to the city.The average cost of apartments is 5446 euros per sq. m, houses are 4304 euros per sq.m.
In Lyon, housing prices vary greatly by district. The average price for apartments is 5,090 euros per sq. m. The average cost of a house is 426,000 euros.
Budget housing in France can be purchased, for example, in Mulhouse, located on the border with Germany and Switzerland. The average cost per square meter of an apartment in one of the youngest cities in France (40% of residents are under 30 years old) – 1120 euros per sq. m.
In industrial Saint-Etienne, apartment prices are minimal, on average 1000 euros per sq. m.
Thus, the French real estate market can offer options both for owners of solid capital and for families with relativelysmall budgets for the purchase of housing.
Summary
The advantage of the French real estate market is, first of all, its stability due to its focus more on domestic demand, unlike some other countries where the absence of foreign investors is more noticeable. Stability is also ensured by the strict policy of banks towards borrowers, so a crisis of non-payments on loans is impossible here.
It is also important that the French legislation gives the investor guarantees and a sense of investment security. All issues related to the purchase and ownership of an apartment are so regulated and honed by many years of judicial practice that there simply cannot be surprises. For example, if you purchase an object with a sea view, then there will definitely not be a situation that, say, a new building will suddenly appear in front of your window that will not allow you to admire the waves in France. We can confidently expect that everything that is written in the contract (the contract for the purchase of an apartment in a building under construction contains 150 pages), the developer implements in full.
Today in France, despite the fact that the sales boom of 2021 has passed, there are many directions for the profitable purchase of real estate, both for their own residence and for investment purposes. This includes the Paris region (except for Paris itself), and large cities (and their suburbs), and villages in rural areas.
In addition to general trends that need to be taken into account when planning real estate investments, we also recommend paying attention to local "growth points" that in the future can improve the quality of life in some location and will affect prices. For example, on the day when the high-speed train from Paris to Marseille was launched, which reduced the travel time from eight hours to three, apartment sellers began to ask for 30% more for them. A similar situation occurred in Bordeaux after the opening of the superfast line from Paris.
It is possible to get a residence permit and move to France today with any passport. Having a desire and certain prerequisites in the form of qualifications, talent or a business idea, you will be able to go through an administrative procedure and realize your intention, and perhaps even a dream.
Thank you for your help in preparing the article:
Real estate agency in France Immoconcept: Director Irina Duport and CEO Irina Artemova
Real estate agency in France Premiumazur: director Olga Timonye
Photos: depositphotos.com
