Paris luxury real estate shines as London suffers
British investor Robert Drake has bought a luxury flat near the Elysee Palace in central Paris for two million euros, lured by ultra-low borrowing costs, attractive prices and a belief in the growing allure of continental Europe for financiers post-Brexit. The two-bedroom flat is Drake’s first overseas property investment. His purchase is a reflection of how the damage dealt to London’s global standing by Britain’s tumultuous decision to leave the European Union is contributing to sharp price rises in the French capital’s luxury real estate market. In the ornately corniced living room of his new apartment, Drake, who is managing director of Bury Street Capital, said Britain’s relationship with Europe had “fundamentally shifted” since its vote to leave the EU in 2016. “Whether Brexit happens or not I still think we are likely to see a transfer from the financial sector in the UK into the major European cities over the coming decades,” Drake said. “So from an investment perspective that’s a relevant point to me.” Drake believes international bankers will increasingly seek top-end apartments in Paris, a city where strict planning rules will keep a firm lid on the supply of upmarket properties. Paris property prices suffered under socialist president Francois Hollande, in power from 2012 to 2017. His 75% super-tax on earnings over 1 million euros reinforced France’s reputation abroad for being hostile to wealth. High earners fled, often to London, creating a glut in supply. The election of investor-friendly Emmanuel Macron in 2017 spurred a turnaround, driven initially by French buyers. As the Brexit negotiations got messier, foreign investors increasingly lost confidence in London and set their sights on Paris.
Tags : INTERNATIONAL