The Paris property market is rated highly both for its high returns and low level of risk. The authors of the report consider Paris as one of the most economically stable in Europe, with a geographically strategic location as a 'global gateway'.

The Paris property market is also considered to offer interesting fiscal opportunities for investors, notably in relation to urban regeneration opportunities.

The authors of the report interviewed 400 leading international investors most of whom considered that buying either office, retail or industrial property in Paris would be a good investment choice. 

This is the third year running that the Paris property market has taken top spot for investors. London came in second place, and another French city, Lyon, came in a commendable fifth place, with many viewing it as an interesting lower cost alternative to Paris.

The Office of Tourism also reported an annual 27 million visitors to inner Paris in 2006, with French hotels seeing a sharp rise in occupancy, pointing to a growing need to provide accommodation.

A survey by INSEE shows that in 2006 the average occupancy in approved hotels in Paris increased by 3.9 points compared to 2005, to reach 75.2 per cent with occupancy rates showing to be highest in September, October and June.

"With surveys showing a record figure of 14,946,849 visitors, overnight stays in Paris for the business tourism sector in 2005 one cannot neglect the tremendous need for accommodation," says Julien Lu, Regional Director for IMOINVEST International. "There is, therefore, huge potential for business and tourism property under leaseback schemes."

As well as attracting visitors with its charm and culture, Paris also has a growing economy and with its new President, Nicolas Sarkozy, set to formulate plans to promote property ownership by providing tax breaks of around 5 billion euros to encourage home ownership, the Paris property market offers opportunities for rental return and capital growth.

For those interested in investing in the Paris property market, IMOINVEST are currently marketing Nova Park in Villejuif, a new development five minutes from Paris centre. The apartments are also close to Charles de Gaulle and Roissy Internal Airports with regular flights to the UK and Ireland. Prices for Studios are from 111,000 euros and one bedroom apartments range from 187,000 euros to 282,000 euros.

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Article first published 4 July 2007