While certain streets seem to have a permanent claim on being the most sought-after, some new streets and quartiers have been enjoying a great amount of success lately
“The new luxury Mozarts”. That’s what they call the new trend-setting streets in the French capital in a study carried out by the UK-based international property firm Knight Frank. In other words, streets and areas that have undergone a substantial increase in value in the last few years, without managing to budge the trio that are still in their seemingly immovable position: the Champs-Élysées, Rue de la Paix (including Place Vendôme) and Faubourg Saint-Honoré. While these three remain unbeaten, there are three choice outsiders.
This very central street (1st arrondissement) has undergone a regal metamorphosis in the last few years, that has led people to forget that it used to be considered as just a lesser-desired geographical extension of the Faubourg Saint-Honoré. The schism between the two at the level of Rue Royale was brutally clear-cut. On one side were the boutiques of prestige and on the other were the local shops and independent retailers. Now, all the luxury brands want to get a foothold in this sector. Between 2012 and 2014, the highest rental price went from €8,000/m2 to… €11,200 – an increase of 40% in 2 years, according to Knight Frank.
Although this impressive boulevard in the 8th arrondissement is particularly prized for its office buildings, it seems to be undergoing a process of revitalisation after a fairly calm 2013. In 2014, there was a real spike in activity: one of the big transactions of the year was based on square-metre rental of €9,000, while another reached €8,600/m2. Overall, there was an average increase of some 60% in rental values over 2013 and 2012, when the highest figures were €5,500.
This is all about the transformation of an entire arrondissement (the 4th) – a bit of a Monopoly game centered around the eye-catching Bazar de l’Hôtel de Ville (BHV) building. Key streets are Rue du Temple, Rue des Archives (where several new luxury shops are opening soon) and Rue Sainte-Croix de la Bretonnerie (where a new mega Italian food store of 4,000m2 is to open). This level of added value has not yet been reflected in the prices – the highest annual rent was €5,000/m2 in 2014 and €4,500 in 2013 – but that’s only a matter of time. “In terms of the level of investment in the area from top-of-the-range retailers, you can only see an increase in prices down the road,” explains Cyril Robert, research director at Knight Frank. The auctioneers have even begun to dub the area “Saint-Germain-du-Marais” in their brochures.