Rest assured we are not looking at a price drop in the Capital. Transactions started to get back to normal after the Christmas break by about mid-March despite a "phoney war" period as buyers were on tenter-hooks waiting to see if prices would begin to drop.

Not a chance! Paris is still a reasonable price for a world class capital on a global level and we will not see property prices tumbling here, even after the seven year hike which some predicted would pan out. 

So who's been buying in Paris over the last 6 months?  The following is translated from an article in French by Richard Bellanger.

Italians:  - Still the biggest group of foreign buyers.  Looking for small spaces with great views.  At one time very active in the Marais and Montorgueil but now colonising the 1er arrondissiment (Louvre-Marché St Honoré) Paris' "Little Italy".
Russians : - Despite grave economic problems there are plenty of Russian buyers (albeit a little less jet-set) searchingin  the 16ème and the Triangle d'Or area (Champs Elysées-Montaigne).  Looking for properties of 150m² with a preferenece for apartments witha beautiful facade, entrance and zero renovation needs.
Middle Eastern : - There has been a return of the buyer from Dubai the UAE and Qatar.  With a notable preference for the 8ème, 16ème and Neuilly, 300m² + with one bathroom per bedroom. Sought after properties are those which are private and secure.
New on the scene :  From Asia; buyers from India, Laos and Korea, from the eastern European countries; Bulgarians, Yugoslavians and Ukrainiens and a resurgence of buyers from Switzerland, Belgium and Luxembourg.

Bonapart Consulting is delighted to announce our move into the real estate sales market with a selection of prime hand-picked properties, all centrally located in the heart of Paris. You can look at the portfolio here.

These apartments are generally renovated and perfect for overseas buyers, either as a pied-à-terre or a rental property. Most of our properties are on an exclusive mandate basis with the option of being sold fully furnished. Many of these apartments belong to owners who have bought, and have been renting, via Bonapart.

We therefore have rental occupancy records for buyers looking to invest in a quality pied-à-terre with the ambition of renting it at a later date. It's our pleasure to provide a detailed rental income analysis whether we have been renting the property or not. With our experience in the rental market, we are also able to provide an evaluation and projection of occupancy for new apartments arriving on the market, as we will only be handling sales of properties that we personally believe in, and would be interested in offering to our discerning rental clientele.

Renovation needs can be handled in house to suit differing tastes and budgets. Our services extend to renovation and refurbishing by our qualified in-house English speaking professionals in order to further enhance the quality of the property for the new owner, or their potential rental clients.

These properties offer a complete package for the future buyer, as the apartments are generally already referenced on our site and have a steady flow of return clients. Many are being or have been used as rental properties, and our reservation and maintenance teams are very familiar with any particular quirks or special needs, the buildings and areas where they are situated.

Have a look at some of our choice properties near the Marais, Montorgueil Market, Bastille, Place Victories, Montmarte, and Saint Germain.

We wish you all a wonderful holiday season and look forward to hearing from you in 2009!

We found a wonderful article online recently and thought it would interest our readers.  When purchasing Parisian property, buyers are frequently misled by the average price per m2 which only gives a general idea but does not necessarily reflect the true value of a property, which can depend on several factors : address, level in the building, quality of common areas, services, etc. The table below gives an indication of how to evaluate, even though we all know, each property is a case apart. (Source PAP newsletter)

 I've just written to our owner's to remind them to look out for Tax d'Habitation and Tax Fonciere bills which usually arrive at this time of year. It's best to chase these up at the local Tresor Public, if you are able to put in place an automatic payment, so much the better and you can forget about it. Property taxes are low in Paris but just in case you feel like you got lucky as you haven't received anything, please don't just write it off! If your Tax Habitation or Fonciere is not paid, the "Fisc" will have no hesitation in freezing your bank account. Imagine the chaos caused by your direct debits for everything from the internet subscription to your electricity bouncing (resulting in your tenants losing power during their stay and the ancillary very long and boring re-instatement of the standing orders).

Don't think you could get away with it either by saying you didn't know you had to pay….. In France you are under obligation to know the law and being a foreigner will not help you persuade officals otherwise. We have obligations here and the authorites take a very dim view of our less rigid attitudes to the paperwork and minutae of daily life.

If you purchased your property in 2008 you will have nothing to pay this year but mark your calendars to make sure that you check next year that the documents arrive.

If you own property here and derive rental income through it, it’s necessary to file a Tax Declaration for a non-resident.  The law says to file, and it is especially necessary if the funds are deposited in your French bank account.  If your property is financed, there would probably be no tax to pay.  Interest and expenses are fully deductible.  I would strongly advise you to file and if you would like us to recommend a Tax specialist you can avoid excess preparation time (and therefore fees) accumulating at a later stage. 

Renting out an apartment or house in France always generates French income that is taxable in France. This is true even if the owner and tenant are American or UK/EIRE residents, and the payment is made in dollars in the U.S or Sterling etc. Now, one may ask, "how would the French tax inspector know that the place is rented to start with?" Just keep in mind that there are in fact telltale signs, such as the tax d´habitation applying to a secondary residence, the electrical meter in the owner’s name and high electricity consumption most of the year – not to mention the Gardien(ne) who figures out the situation within a couple of months after the rental business has started. Believing you are safe from tax inspectors because you have never had a problem gives you a false sense of security. Once tax cheating has been identified, the French tax inspectors tend to wait until it has been going on for three years before striking. This is because three years is the time period for the statute of limitations and they want to make the audit worthwhile.

Please contact us for further advice if you would like, by email and if need be we can also schedule a call.

From Curbed/Gridskipper.... Readers are always asking me where to go to outfit their Paris apartments, apart from the ubiquitous IKEA and everyone's one-stop shopping emporium, the venerable BHV (Editor's note - even the staff inform us it's a rip off but it's handy right in the centre of town I suppose). The number of Parisian home decor stores can be overwhelming in scope, style, and price. But there are a number of specialty shops around Paris where you can find your desired object, be it a light fixture or a couch or the perfect shade of paint, in multiple if stylishly edited propositions.

A couple of them I'd agree with:

"Peintures de Paris
Hiring painters costs a fortune in this town. If you want to DIY, best head to Peintures de Paris, a favorite of professionals and amateurs who want sound advice and … quality products. Professional, old-fashioned service, fair prices, and help matching any color. Several locations in Paris and the surrounding area.
Maison de Convertible
The Paris apartment is often a cramped affair, and the people at La Maison du Convertible have solved that problem by offering incredibly stylish, easy to use, and … quality armoire-lit that disappear when you don't need them and are a snap to summon when the need hits. Three locations in Paris.

Bonapart presents its market study on current developments in luxury residential area real estate. The study covered sales of apartments and homes in the exclusive residential areas of Paris (1e, 2e, 3e, 4e, 5e, 6e, 7e, 8e, 16e and 17e south) and its western suburbs (Neuilly, Boulogne, St Cloud).

To receive details of this report, contact Director Susie Hollands.

98.5 % of the 2 to 4 M€ transactions, and the almost all of > 4 M€ transactions in Paris and in Hauts-de-Seine were carried out in these residential areas.

There has been no drop in the number of transactions – or in prices – in the afore-mentioned luxury residential areas, contrary to the trend observed in the provinces and the greater Paris metropolitan region.

Just as I was writing about the Marais yesterday, I didn't mention the "Haut" Marais. it's the area that falls officially outside Ye Olde Marais but that in recent years has sneaked into the classification (much to the delight of those who have owned homes there since way back then). The last few years have seen an explosion in galleries, independent boutiques and the likelihood of being run down by skinny young graphic designers on scooters. For a slice of life, Melissa Unger has written a great piece for I V Y paris......

Last weekend, rushing from République, in an effort to get to the Marché des Enfants Rouges before the 15 euro orchid plants were sold out, I cut across the Carreau du Temple.

Because I am cheaper than day old bread, this type of bargain incites me to take perilous risks, like running in high heels and venturing down unknown streets. Despite nearly falling twice and being more focused on horticulture than culture 'tout court’, I still managed to notice that there were a whole slew of new art galleries and trendy shops on the criss-cross of streets just north of the rue de Bretagne (rue Charlot, rue de Saintonge, rue de Poitou and all around the Carreau itself.)

Read on.....

Through Bonapart’s sister site, I V Y Paris our clients interested in the Arts and entertainment stay informed of culturally enriching events taking place around the city.

The Guardian wrote today about the increasing Mall-isation of the Marais. "Paris's historic Jewish quarter, has fallen victim to the tourist onslaught and rocketing property prices." I was writing about this in September 2006 when the phenomenon was already well underway...........

"Plus the place is turning into a shopping mall. The worst I've seen is the new Lee store which has used the beautiful old facade of the building in a most heart rending manner to flog it's tawdry trousers."

Don't even think of going there on a Sunday for a quiet stroll, you'll be mown off the pavement.

That said, there are of course still charming pockets which you'll have all to yourself and it can't be beaten for being smack bang in the centre of town from where you can walk everywhere. Plus there are the hotel particuliers, the fun bars and Les Bain des Marais Hammam andit's good for spotting sexy young people of either sex. It's not all that bad.

A common problem with buildings in Montmartre is due to a curious phenomenon relating to carrieres (this means quarries).

The beautiful fin de siecle architecture scattered over the Butte and especially around Lamarck Caulincourt are on the hill where they originally got the stone for building Paris. The hill of Montmartre is just a thin veneer of rock over an underground quarry, a Swiss cheese of caverns and tunnels, and fortunes are spent pumping the caverns full of a mixture of concrete and clay. Initially the miners quarrymen left columns of stone to hold the whole thing up, but water has seeped in over the years, eroding away the columns, and surface subsidence has occurred.

Beware when you spot large fissures (cracks) in the buildings, it could mean the foundations are unsteady and the building is, well, moving......that can make for a big bill down the line when it comes time to steady the foundations. We'll be able to pick up issues like this during the time you are looking at the property with a view to buying and for more precise details, we'll see from the minutes of the co-ownership group if there are discussions about future works to come.