From iconic fashion houses to legendary jewelers, luxury retail real estate in Paris is going from strength to strength.
It’s nothing but good news for those involved in the city’s property market, both commercial and residential.
The Paris retail revival
As previously reported in this blog, Paris has enjoyed a strong ‘retail revival’ this past year. It’s seen many of the world’s top luxury brands opening stores in the city.
In fact, according to real estate firm Savills, last year Paris accounted for 5.6% of all designer store launches worldwide. That’s more than any other city around the globe.
There are, of course, many factors at play. One is that even though in this modern world of online shopping, luxury stores continue to be hugely profitable. High-end, luxury purchases are still largely made in person, not online.
Another is the high-value revenues generated by tourism, specifically Chinese tourists. Paris enjoys more Chinese overnight visitors than any other city, attracted by the luxury shopping market. By purchasing in Paris, not only do they enjoy lower prices, but also the guarantee that the goods are authentic.
Changes on the Place Vendôme
The Place Vendôme is seeing huge changes, thanks to some of the world’s top fashion brands.
This was something of a homecoming for the brand, returning to the location where they first opened their doors over 160 years ago.
But they are not alone in this part of the city.
Chanel on the Rue Cambon
Close by, Coco Chanel famously owned an apartment on the Rue Cambon, opening up the ground floor as her first-ever boutique in 1918.
It’s still Chanel’s flagship to this day. But it’s about to get even bigger.
Their new, revamped store is due to open this year, just in time to celebrate their 100-years on the Rue. As well as being larger it will also house office space, workshops and even a museum looking back at the brand’s illustrious history.
The area is also hugely popular in the residential market, as you can see with this apartment currently for sale.
Reaping the benefits
According to AEW Global, Paris rents have been increasing by 9% every year since 2013. So naturally, property investors and landlords are reaping the benefits of this buoyant market.
Other investors are ‘flipping’ premium retail properties, to great success. This includes Thor Equities, who recently sold two of their properties on the Rue de Rennes.
Your own Paris investments
With the retail giants making waves, it’s certainly a fantastic time to consider your own investments in Paris.
Whatever your needs, make sure you get in touch with the team at 56Paris. Always following current market trends, we’re on hand to give friendly, no-obligation advice.
Photo: Diego Albero Román