Increasing French property sales
French real estate face high level of Arab Gulf investments
More and more people from the Arabian Gulf are investing in French real estate as it is becoming a “popular investment alternative” for many in order to become a permanent resident, to have a second home or for a “long-term holiday let”. This is an advantageous and logical property investment for them.
Arabian Gulf investors, especially Qatari Royals’ investors, are increasingly attracted by French properties. Qatar is facing a great economic expansion and its real GDP growth average was 16.2% per annum from 2005 to 2011. The high commercial real estate investment power of the Arabian Gulf investors in France is the result of their successful economic boom promoting French property investments, the strong trade relationship it has with France and also of their oil richness. Finally, they have the power to invest in French properties thanks to their strong economy and the low interest rates France is experiencing on its property mortgages.
Following a treaty sealed between France and Qatar in 2008 under Nicolas Sarkozy’s power, Qataris’ property investors are discarded “from taxes on profits when they sell properties”. However, this aspect has been persistently discussed by politicians. The Qatari Royals have purchased numerous famous French properties such as Virgin Megastore flagship, the Hotel Martinez in Cannes and a breathtaking stud farm located in Normandy. One of their latest French real estate acquisitions was a chain of malls under the Printemps banner in Paris purchased for 1.7 billion euros in August 2013.
Property investment in Paris by the Arabian Gulf investors
Paris has become a very attractive city in terms of property investments, with the Middle East accounting for about 18 percent of total investment in commercial real estate. With around 40 owned properties in France, Reuters’ data reveals that the Qataris’ property investments might amount to 5.9 billion euros since the last few decades and their Paris attractiveness might be explain by the fact that Paris is one of the most renowned cities boosting Islamic finance to promote economic growth. The Qataris’ French investment transactions are often hidden and most of the Qatari Royals’ investors use interlocking holding companies in order to remain private.
