Like the rest of the economy real estate is living the era of globalization. Social migration, globalization and currency fluctuations have changed the global real estate markets. Commenting on these issues Thibault de Saint Vincent, the president of Barnes Group says it is very common to see people from France buying appartments in London for their children who go there to study, or in New York. The weakness of U.S. dollar and British pound have allowed some buyers to make great deals in 2009.
The group's specialists say London has never been more affordable for the French then it is now. New York, where prices of houses and apartments have started to climb again, still holds great opportunities and bargain deals.
In Paris, group says one can find upscale apartments at 10,000 euros per sqm. Paris real estate prices have dropped 10 percent during the crisis. The prices in the European capital of art are trying to stabilize. Quality and upscale apartments in Paris have rarely been offered for less than 10,000 euros per sqm in 2009 Thibault said.
Barnes says London housing prices are only 20 percent higher than in Paris. However, average apartment price in London is still at historical level. The group says they have never been this accessible and affordable for real estate buyers. Richard Tzipine, CEO of Barnes, tells Les Echos that while London real estate prices are only 20 percent higher than that of the Paris, traditionally the British capital has been twice more expensive than Paris.
New York City: Few Good Opportunities
The report says real estate prices in the New York City have significantly recovered between the June of 2009 and the January of 2010. The number of transactions have risen nearly 55 percent mainly because of the return of the European real estate investors. New York City apartments and house prices provided great opportunities for the European investors who wanted to take advantage of the low real estate prices and the strong Euro vs. U.S. dollar. As a result the prices in NYC are up 7 percent from the previous quarter. However, the Big Apple may quickly lose its attraction as the U.S. Dollar gains strength. When Europeans took advantage the euro was $1.50. Now it's $1.36 per Euro, making NYC less attractive for the French and British real estate investors.
Written by Armen Hareyan