With Paris 2024 set to be the biggest sporting event ever organised in France, millions of people from all over the world will flock to the capital to take part and thrill to a fortnight of sport. Plans are already underway to regenerate the area, making it a golden opportunity for homeowners and property investors to reap the benefits of this prime location while property prices are still affordable.
If you’re interested in buying a property in the fashionable and luxurious city of Paris, The Luxury Property Show offers expert advice for securing an Olympic investment ahead of the games.
How will the Olympics impact Paris?
Olympic developments have a history of boosting the area they’re in, both economically and socially, particularly around formerly neglected areas of the city. It’s something we saw in London back in 2012 (Lloyds Bank), and it’s no doubt something we’ll see in the French capital in 2024. In fact, a study conducted by the Centre for Law and Economics of Sport (CDES) at the University of Limoges has estimated that the Olympic and Paralympics could generate €10.7 billion in economic benefits to the region (Paris 2024). But, if the London Olympic games is anything to go by, this number could be significantly larger.
Both French and foreign investment will contribute to the economic growth, and the building work and games itself will help boost local employment rates. Perhaps the sectors that will benefit the most are construction, transport, and hospitality, with speedier transport links and major enhancements to the area itself, making the region a prime spot for investment.
What are the best areas for investment property in Paris?
The Paris Olympics will be hosted in the north of the city, which means the areas around the region could be in for an economic boom. If you’re interested in investing ahead of the 2024 Olympic and Paralympic games, then these are the areas to focus on during your property search.
Saint-Denis will be home to the Stade de France, where the opening and closing ceremonies will take place. It’ll also play host to the aquatics centre and the 86,000-acre Olympic village itself. Currently, house prices in the area are around 30% lower than in more desirable Parisian neighbourhoods, but they have potential to boom once the games grow closer. So, now is the perfect time to invest in property in this area. You could see substantial returns whether you’re thinking of making it your primary residency or a letting opportunity.
The Île-Saint-Denis is a small strip of land in the Sieine river, between Seine-Saint-Denis and Hauts-de-Seine. Originally built as a fortress island to prevent the Normans from moving inland, this small but vibrant strip is steeped in history. With a range of housing, picturesque parkland, and a shopping outlet, this area has everything you need if you’re preparing to make the move abroad.
Again, houses in this area are generally affordable, but could see a significant boom because of the Olympic buzz. If you’re looking for property in Paris but want to be a little further away from the hustle and bustle of the city centre, then Île-Saint-Denis is the prime location for property investment.
The banks of the Seine
Along with the Olympic investment, the overall project will see significant regeneration along the banks for the river Seine. With the creation of new business sites, green spaces, and gardens, alongside the already established real estate hotspots, the Seine is a prime location for investment. Properties here can make the most of the unique views while also benefitting from the newly regenerated infrastructure.
Areas of interest include the 8th arrondissement of Paris, particularly around Pont Alexandre III, which will see various theatre, music, and sculpture spaces open up to the public. A new warehouse conversion is proposed on the Canal L’Ourq, which will include artisan breweries and bakeries, as well as a café, market, and restaurant. Other plans include a green hub on Avenue President Kennedy, and plenty of art projects in the 7th arrondissement, on the left bank of the river between Grand Palais and Les Invalides.
It’s not just the inner-city areas that will benefit from the Olympic boom, but the surrounding suburbs too. As part of the infrastructure, the French government is planning the Grand Paris Express, Europe’s largest transport project. This development will see a 2000km extension of the railway line, expanding the network to nearby areas and connecting them with the city centre. Newly created links include lines from Saint Lazare station in Paris to Port-Cardinet, Clichy and Saint-Ouen, which can make these areas more accessible and therefore more desirable.
Gare Du Nord, a small town situated on the Eurostar route, will be transformed over the next four years ahead of the event but will maintain its historical architecture. Passengers travelling from London to Paris will soon see the changes that will make it an up and comer for those looking to invest.
How and when to look for an investment property
In short, the best time to look for an investment property is when you feel ready. But, if you’re thinking of making the most of Olympic investment, then the sooner you can get your foot in the door the better.
While looking for an investment property, it’s important to focus on three things: location, price, and potential. If you narrow down your search to the main regeneration hotspots of Paris (those mentioned above), then it’s likely that you’ll find a property that is affordable right now, and will appreciate once the Olympic investment transforms the area.
The easiest way to look for property is by visiting the right websites and estate agents. You can usually narrow your search down to a specific region or city, which makes it much easier to find a property in the location you want. Then all you need to do is browse the listings until you find one that you’re interested in.
It’s also a good idea to visit a property show if you can. These will showcase the best properties on offer, along with the latest property investment news. You may also have the opportunity to speak to various experts, including lawyers, currency specialists, and independent financial advisers, who can offer advice and help you prepare for your investment.
How to make the most of your property in 2024
The Olympics will bring an influx of tourists looking for local accommodation, so if you’re not thinking of staying in your home permanently (or you fancy a trip away during the summer) then consider letting it during this time instead. There’s a whole range of people who will be looking for accommodation, from those who are working at the games but don’t live nearby, to TV crews, journalists, and spectators.
Remember that property in these areas will continue to be desirable even after the Olympics is over, so it’s worth continuing to rent it out— either to long-term tenants or short-term visitors — to benefit from the new infrastructure and jobs.
If you’re planning on renting out your property, there are two avenues you can go down, and each have their own pros and cons. One is by listing it with a letting agent or estate agent, who will advertise for you and deal with the general letting and maintenance of the property. If you take this route, it’s worth bearing in mind that you will need to pay a fee to the management company.
On the other hand, you could choose to list your property privately. While you won’t need to pay an external agent, you will have to deal with the letting and maintenance yourself. So, this is an option that’s best if you’ll be somewhere nearby during the course of the rental.
No matter which avenue you take, it’s important that you research the legalities of letting your property first. For example, you may need to register as a professional landlord and business. While you will be liable for French income tax on your earnings, you may also be able to take advantage of any available tax breaks.
Christopher Nye, Senior Content Editor at The Luxury Property Show, said: “Paris is already a prime spot for tourism and real estate. But, while luxurious neighbourhoods such as the Champs-Élysées, The Latin Quarter, and Le Marais have long been sites of culture and opulence, it’s time for the underdogs to take the lead.
“The upcoming Olympic investment could see areas away from the current tourist hotspots stealing the limelight. Plans are being made to regenerate these areas and bring in a variety of cultural developments, along with the Olympic village. Saint-Denis, the bank of the Seine, and the neighbouring suburbs will be a prime spot for art lovers and foodies alike.
“These areas will soon become a centre of opportunity and desirability, which means now is the perfect time to invest before the market booms. Whether you’re looking for a residential property in an up-and-coming neighbourhood, or a letting investment with plenty of potential, it’s definitely worth focusing your search in these areas.”