Philippe Menager & Nicolas Hug : Paris for aesthetes
For over 30 years, the Philippe Menager & Nicolas Hug agency has nurtured a singular vision of Parisian real estate : here, apartments are seen and acquired like works of art. In today’s volatile market, Nicolas Hug analyzes a capital city henceforth split between the local wait-and-see attitude and international desire.
In Paris, the property market no longer moves in unison. For Nicolas Hug, it has clearly been split into 2 contrasting realities. Firstly, a so-called “classical” market, in sharp decline. “Here, people sell square metres,” he says bluntly. Often devoid of any special features, these properties are mainly geared towards a French clientele held back by the brutal rise in interest rates, from 1 to 3.5 %, inevitably increasing the cost of their acquisition. “And resulting in few calls, few visits, and sellers still reluctant to lower their prices.” At the other end of the spectrum, the ultra-luxury market still posts insolent vitality. Here, acquisition is based on sentiment : “Buyers acquire a little chunk of Paris”. An international clientele led by Americans, but also buyers from Brazil, the Philippines or Taiwan, competes for impeccable, rare properties, in prime locations with enchanting views. The capital is still an indicator of success, underscored by the showcase effect of the Olympic Games : “We recently sold an apartment of 223 m2 on Rue St-Simon, in the 6th arrondissement, for 8.7 M €, to Chinese buyers.
In this niche market where 90 % of the clients are foreigners, rarity creates excitement and sometimes even a waiting list. Outstanding properties are rising in value, some attaining levels above those prior to the crisis”. Another noteworthy development : growing enthusiasm for turnkey apartments. “They meet the expectations of a clientele giving priority to excellence and immediate access.” Global market balance nevertheless remains fragile. Nicolas Hug pleads for tax relief and a significant drop in interest rates, which he currently sees as dissuasive. He also draws attention to the effects of certain regulations in force : rent controls, energy efficiency requirements, complex renovations in Paris, which can limit the supply of rental accommodation, while prompting discussion on the capital’s development. Beyond all these challenges, however, one thing is self-evident : “Paris will always remain Paris”.
