Thriving Business Hub: Paris's Attractiveness to Youthful Business Pioneers
In the heart of the Paris luxury real estate scene, the 18th arrondissement has experienced a staggering 35% price surge since January. The wealthy buyers stealing the headlines are mostly successful tech entrepreneurs in their forties. they're parents, raising two or three rugrats. "They" are the fresh, high roller family clientele that Barnes is serving in the 18th, causing such a dramatic spike in the prices of opulent real estate in this long-loved Parisian district.
According to Richard Tzipine, the CEO of Barnes, the 18th arrondissement's luxury properties now command an average asking price of 14,000 euros per square meter, a 40% gap from the average price in Paris, which hovers around 10,000 euros per square meter. No other arrondissement has seen such a significant increase this year, with the typical rise being a meager 2%. At nearly 16,500 euros per square meter on average, the 18th arrondissement now eclipses the 5th, the 8th, and the priciest arrondissements, with prices ranging between 13,800 and 16,000 euros per square meter.
Surprisingly, unlike the glitzy, expensive 6th and 7th arrondissements, where a square meter fetches between 18,700 and 20,000 euros, the 18th doesn't seem to be a haven for foreign investors seeking a pied-à-terre in the City of Light. Instead, the buyers are primarily French, and, in the words of Marie Beauchet, the director of Barnes agencies in the 18th, these buyers are "flush with cash."
These successful entrepreneurs are tired of the confines of the elite quarters such as the 6th, 7th, and 16th, and are drawn to arrondissements that offer a quaint, village-like atmosphere, with small restaurants, local shops, and a distinct ambiance, all within walking distance. With Montmartre's beautiful avenue Junot and rue Lepic high up, these families find their dream homes. Ironically, from the street level, these homes may appear like garages, but behind them lie houses with gardens, as Marie Beauchet puts it with a smile. In the past seven months, she's sold no fewer than six of these dream homes, with "astronomical" prices ranging from 2.5 million to 8.5 million euros.
Among her latest sales, the agency has sold a stunning, 2,860-square-foot, three-story house with six bedrooms and a garden for nearly 6.5 million euros. The buyers, like the sellers, are French. Marie Beauchet shares a laugh, saying, "I'm in the last remaining 'village gaulois' of Paris." A village that is historically beloved by middle-class families, but one that is increasingly out of reach due to escalating prices and high mortgage rates.
While there's no concrete evidence linking French tech giants to these real estate trends, Paris's bustling tech scene and the city's allure for entrepreneurs could be fostering an increased demand for luxury properties across various neighborhoods.
- These successful French tech entrepreneurs, flushed with cash from their businesses, are increasingly investing in the housing market, notably in the 18th arrondissement of Paris, where they've caused a dramatic spike in prices of luxury real estate properties.
- The average asking price for luxury properties in the 18th arrondissement has surged to 14,000 euros per square meter, significantly higher than the average price in other arrondissements, indicating an increased interest in this district among high-end investors for its quaint, village-like atmosphere and proximity to local amenities.
