Luxury Real Estate

Audrey Munsch of Property Concept

“Extraordinary property”, “first class location”, “extremely rare” … These are just some of the superlatives used by real estate professionals to describe properties that, whilst certainly not horrendous, often don’t live up to potential buyers’ expectations. We recently got wind of a very hush-hush, confidential project in the charismatic Ile Saint Louis area of Paris, and this time there’s no doubt as to its “exceptional” character …

Interview with Ms Audrey Munsch, marketing director.

You’ve been working in Paris real estate for 10 years now. Is this Ile Saint Louis project as “exceptional” as it sounds?

A.M: Yes, absolutely. Everyone is bowled over by the architecture and timeless character of the Ile Saint Louis, this tiny haven that literally oozes charm. For the last 10 years I’ve specialised in dealing with international buyers, and for the last 10 years my clients have been calling me up at 10pm, having just enjoyed a Berhillon sorbet sitting opposite Notre Dame, saying: “Audrey … forget everything else we said … this is where we want to buy.” Unfortunately, it’s almost impossible to fulfil that demand.

Why is that?

A.M: The key word is rarity. Ile Saint Louis is a tiny area at the heart of the Seine, measuring just 0.11 km2. There are only 8 roads plus the quays, with less than a thousand inhabitants … basically that’s the problem. There is a constant shortage of properties and demand is very strong. Ile Saint Luis is one of those micro-markets that’s never known a crisis. On top of that, town planning and conservation regulations can sometimes be restrictive. A lot of the buildings date back to the 17^th century and are classed as historical monuments, which means that you might fall in love with a 5^th floor apartment but there’s no hope of ever seeing a lift installed. The type of property on offer is also a problem. A lot of the apartments are huge (200 – 250m2), which means you’re talking about levels of investment that are unreasonable for a pied-à-terre. The rest of the market is mainly made up of small surface areas (18 to 40 m2), which don’t fit our clientele’s needs. Anything in between is rare.

Tell us about your project.

A.M: It’s a very beautiful 19^th century, cut stone building on the western side of the ile, with just 6 apartments of nearly 90 m2 each. Apart from superb interior features such as “Point de Hongrie” chevron hardwood floors, fireplaces, mouldings and balconies, the apartments enjoy fantastic views over both branches of the Seine. On the left bank: the Panthéon, the Tour Montparnasse and the towers of the Notre Dame cathedral; on the right bank: Saint Gervais church and the Marais neighbourhood.

We are carrying out high quality renovation work on all of the communal areas and we are also installing a lift. Interior design will be studied on a case-by-case basis with each client in order to best meet their requirements; these are clients who expect custom-made service!

For such exceptional properties, exceptional prices?

A.M: Yes and no. Let’s be honest; the Ile Saint Louis market is probably the most expensive in Paris, and it’s not accessible to everyone. Prices per square metre range between 9,000 € for an ordinary courtyard property and 35,000 € for a property on the southern quay with view of the Seine. Determining factors come down to view, aspect, quality of building … and the lift.

We have apartments at prices ranging from 1.8 to 2.3M€ depending on the floor, i.e. 20 to 25,000 €/m2, which puts us below market price.

Is there much demand from investors?

A.M: Yes, there is. Patrimonial values are very strong, as are levels of profitability. This is a very dynamic market for seasonal rentals; a 3-4 room apartment with view of the Seine is normally rented at 3,000 to 3,200 € a week. Even if it is only rented for six months a year, which would also allow the owner regular use, we’re still talking about 80,000 € a year in rental income, which is no small sum.

In these times of financial instability, how is the Paris real estate market holding up?

A.M: A lot better than you might think, considering what we’re being told on a daily basis!

You have to find a reliable source of information to understand what’s going on in our market, and in France that means, without question, the notaries.

The most recent quarterly report published by the French notaries (May 2009) shows figures from the third quarter 2008 that are much more detailed than those given by the media.

Whilst it’s true that during the 4^th quarter 2008 the overall volume of business went down by 17%, prices for apartments in the old part of Ile de France only reduced by -0.8%. They add that: “In Paris and other large provincial cities, prices for excellent neighbourhoods or zero-problem properties will remain stable and may even continue to increase very slightly”.

Our particular market has always been a lot steadier than that of our British or Irish neighbours, without naming names. It is a market that allows mid-term increases over periods of 8 to 10 years. Well-informed investors have absolutely grasped that …

To consult the French notaries’ 3^rd quarterly report (May 2009) in its entirety, please go to: