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:

By: Nicola Christinger of HomeHunts

Location Spotlight – Paris 

Introducing Paris needs no introduction. As the capital of France it is recognized as one of the world’s major global cities for education, business, fashion, entertainment and politics. The Eiffel Tower leads the way in the long line of world-famous landmarks, institutions, parks and gardens. Nicknamed as the “city of lights” the name refers to its reputation for new ideas and its early introduction of street lighting.

The Eiffel Tower celebrates its 120th birthday this year, and Paris is honouring its creator, Gustave Eiffel, with an exhibition about the man who not only gave the country its most recognisable symbol but also was behind numerous beautiful bridges and other impressive powerful and poetic constructions.

Paris is divided into “arrondissements”, which are more like 20 separate villages, that joined to form the city of Paris as the power and influence of the capital became more important. The atmosphere, character and influence of each of the arrondissement are completely individual, making each one unique in culture and way of life.

Property in Paris offers some of the most beautiful, classic buildings in the world and a word often used to describe apartments in particular was Bourgeois. The term Bourgeois, or, Bourgeoisie means (literally) city-dwellers and it evolved from the Old French word burgeis, meaning “an inhabitant of a town”, it meant the middle-class, the merchants and shopkeepers, and in Marxism, it came to mean the ruling classes.

Historically, the bourgeoisie comes from the Middle Ages, whose status or power came from employment, education, and wealth, as distinguished from those whose power came from being born into an aristocratic family of land owners. In modern times, it is the class owning the means for producing wealth.

Over time it is a word associated with grandeur, the characteristics and recognizable architectural features are columns, frescos, large arched windows, high ceilings, wrought iron balconies. Bourgeois property indicated and portrayed an image of noblemen or the rich showing off their wealth.

Strolling through the city of style it is hard not to notice the many building which speak volumes about their history and Paris continues to captivate buyers and investors. Aiming to help investors get the most out of their euros, The International Law Partnership recently revealed its top property investment destinations for 2009 and Paris tops the list. According to the ILP, smart investors looking for a property offering value for money this year should consider a purchase in the French capital, Paris.

The continued popularity of Paris, the most visited city in the world, has meant that it has weathered the initial storm better than many other cities as the economic situation has worsened around the world over the past year or so. Paris-bound investors should be able to capitalize on a strong rental market, with high demand for rental properties likely to last over the next 12 months.

This 2 bedroom apartment (below) in Avenue Flandrin (16th arrondissement) offers living room, dining room 1 bathroom , kitchen, shower room and is priced at 1,210,000 euros.

For sale in a 17th century Bourgeoise building in Rue Cambon (below right) in perfect condition is this 105m2 apartment with air conditioning, 2 bedrooms, 2 bathrooms. Price: 1,350,000 euros.

Located in the Monceau district (below left) this magnificent apartment of 225m2 on the second floor of a superb building and includes a fitted kitchen, a living room of 50m2, 4 bedrooms and 3 bathrooms. It also offers a private parking space. Price: 2,350,000 euros.

Perhaps the property with one of the best views is this apartment whose bedroom overlooks the Eiffel Tower itself. With approximately 169m2, a kitchen looking onto the Trocadero, a dining room, a living room with a marble fireplace and bay windows looking out onto the Seine and the Eiffel Tower. The apartment also has a parking space and a further room. Price: 2,700,000 euros.

If you are planning a property search visit soon then, aim to book your trip between the end of June until the end of July – not only could you return home with a new property but the sales or “soldes” are on.

These sales are not just a couple of euros taken off here and there, but are the chance to purchase many designer luxury goods and a fraction of the original price. Starting on Wednesday 24th June – and continuing until Tuesday 28th July – five weeks of pure bargain-hunting pleasure: the only time of year when businesses are allowed to sell stock at a loss. With the current global economy, many shops will be making an extra-special effort to make money exit your purse and fly into their tills. In France we call that “une opération séduction“! Ernest Hemmingway wrote “If you are lucky enough to have lived in Paris as a young man, then wherever you go for the rest of your life, it stays with you, for Paris is a moveable feast.”

With its class and culture and so much on offer in the city of lights, Paris will surely satisfy everything.

If you would like more information on properties in Paris then please contact info@home-hunts.com

Information: The exhibition Gustave Eiffel, le Magicien du Fer can be seen at the Hôtel de Ville – Salle Saint Jean, 5 rue de Lobau – from 7th May – 29th August 2009 every day except Sundays and public holidays from 10am – 7pm. Admission is free. www.paris.angloinfo.com

By Dominique Brizard of Patrick Randi Real Estate

With eight French door windows opening directly on the Seine River, this 2300 square feet collector’s apartment has a very exclusive Parisian view. 

Situated in a beautiful stone building of the Seine banks, this residence features a triple reception and three bedrooms with four bathrooms, all in excellent condition with air conditioning. All decorations are subtle and elegant. A separate guest studio adds to the comfort and amenities proposed by this very special apartment.

About the VIth Arrondissement:

The sixth arrondissement is constituted of three main areas: Saint Germain des Prés, Luxembourg, and the south western rue de Rennes leading to Montparnasse.

St Germain des Prés is an extension of the Latin Quarter and offers the same characteristics with a slightly more stylish, artistic and intellectual feel. Accordingly, St Germain des Prés hosts many art galleries, interior design shops, cinemas, book stores, restaurants, cafés and bars. 

The Luxembourg Quarter is quieter than St Germain des Prés, but just as fashionable. At the centre of this neighborhood, the beautiful Palais du Luxembourg with its Jardin is extremely popular amongst families, tourists and university students.

Rue de Rennes is a very active shopping district and the nearby rue du Cherche Midi offers a multitude of independent boutiques and fashion designers. 

By Carl Peralta of 77 Great Estates

Last January, 77 Great Estates attended the Luxury Real Estate International Conference held in Paris.

The conference was held at the Hotel du Louvre with their efficient concierge service which delivered all our real estate promotional packages to each participant’s room.

The 60 luxury real estate agents hailed from countries including Australia, Canada, Caribbean Islands, France, French Polynesia, Greece, Italy including Sicily, Poland, Portugal, Spain including Palma de Mallorca, UAE, USA including Rhode Island.

The personal relationships created with such agents will help us source high net worth individuals and blue chip companies which are already existing clients of said agents. Their clients include international development companies, international franchise owners &/or directors, oligarchs, sheiks, Greek ship owners, sports’ team owners, actors such as John Travolta, Sharon Stone, Angelie Jolie and Brad Pitt just to mention a few.

The topics discussed by the highly experienced international real estate agents & by the real estate marketing company included:

• creating a global brand for our real estate agency firm;
• most cost effective methods of successfully marketing luxury properties internationally. In fact, Joe Paris from 77 Great Estates’ Auction Department is offering said useful methods to owners of properties in Malta & in Sicily;
• expansion of our real estate company networks in order to create a more global presence in each of our local markets;
• during the conference we were accompanied by a real estate advocate, travel writer and photographer - click on the following link to view the photos courtesy of Francis Chiasson.
• technology & trends offered on the internet including on LuxuryRealEstate.com. Our Marketing Department headed by Doreen Conti has already put such theories into practice;
• quality service to our clients: vendors, lessors, buyers & lessees. Julienne Borg from our Corporate Department is putting together all the necessary contacts in order to offer our clients a concierge service – a 1 stop shop.

At the end of the conference, practically all the participants agreed that the Maltese real estate, will retain and increase its value due to the islands’ limited space.

Once in Paris, Hugh Peralta & Associates – Advocates (Malta) referred Dr Carl Peralta to Dr Paul de Dree of Salans (Paris) which also enjoys offices in Almaty, Baku, Barcelona, Beijing, Berlin, Bratislava, Bucharest, Budapest, Frankfurt, Istanbul, Kyiv, London, Madrid, Moscow, New York, Noumea, Prague, Shangai, St. Petersburg, Tahiti & Warsaw. Dr Dree & Dr C. Peralta discussed the existing real estate opportunities in Paris – such as judicial sales – and also the real estate potential in emerging countries such as Asian countries.

Dr Peralta had the opportunity to eat at excellent restaurants such as Le Jules Verne on the Eiffel Tower by Alan Ducasse; the Cafe’ de l’Homme situated in the museum of anthropology next to Trocadero square enjoying views of the Eiffel Tower and finally Bouef Sur Le Toit which reminded him of Cipriani in London.

We look forward to attending the next European conference; possibly in Malta - fingers crossed.

Dr. Carl Peralta - Director of "77 Great Estates" - together with Mr. John Brian Losh (Chairman & CEO of Luxury Real Estate) and Mr. Raphael T. Harris Jr (Owner/Broker of World Real Estate, Sicily).

By Jim Walberg of Caribbean Island Realty

Who's Who in Luxury Real Estate International Conference - Paris, France. Day 3 - final two sessions

The last day of the Luxury Real Estate International - Paris Conference was focused on current and future technology critical to the international real estate community, and what are some concepts for exit strategies for selling a real estate company.

Victor Lund, one of the partners of the WAV Group, was the presenter on technology tools and trends. The research he did for this presentation was impressive. I would recommend you visit their website and learn more about the services they provide real estate companies around the world. I had several discussions with Victor and his fellow partners about how the success of Caribbean Islands Realty can even be expanded.

John Brian Losh was the facilitator for the last two sessions of the conference. The first session was about how one valuates a Brokerage, and if one is ready to retire or move on to a new adventure how can it be sold. There was a very lively discussion on this topic. Several of the comments from the participants were focused on they could not imagine retiring. There is something unique about owning a real estate company that allows one to serve clients as long as one is able and is still finding it a satisfying and profitable experience.

Mr. Losh wrapped up the conference with a time of reflecting on the profitable ideas that we will be taking back to our real estate businesses. There was a LONG list of ideas and tools that will be serving all of us in 2009. Some of my final thoughts from the Paris conference were:

• Some of my personal take aways from the Paris conference are focused on the extraordinary quality of the LRE members. Meeting new LRE friends and expanding friendships with those I already new was worth the price of admission.
• Each of us have unique businesses, and very specific local real estate markets in the as part of the Luxury Real Estate international membership. One can gather all the latest greatest “stuff” for our businesses, however the bottom line is it still is all about personal relationships. People do business with people they trust and actually enjoy working with.
• The ultimate power of the Luxury Real Estate network is still generally untapped. The more relationships we have within Who’s Who In Luxury Real Estate the more we are able to leverage our global real estate services and sell more properties.

From Australia to Poland, my real estate businesses have been expanded because of my participation in this important international conference in Paris. AND…did we have some amazing fun in Paris exploring restaurants, and even some fun cave vin bars. Actually, the fellowship time was where the long lasting effects of the Paris conference will benefit all of the delegates. My next adventure was to Geneva after Paris. Stay tuned…more to come.

By Jim Walberg of Caribbean Island Realty


Who's Who in Luxury Real Estate International Conference - Paris, France. Day 2 - all day seminars and networking opportunities


After Wednesday night’s cocktail reception and formal dinner, the real work of the Luxury Real Estate Paris Conference began. With delegates from 14 countries in attendance - from Australia to Poland, Day-2 of the conference focused on how we can expand our real estate company networks in order to create a more global presence in each of our local markets. The Hotel du Louvre was the perfect venue for the work of the conference. It was agreed by the delegates that the international members have barely scratched the surface of what is possible when all of us expand our sharing of information, experiences, and our luxury listings.

Day 2 of the Paris conference opened with John Brian Losh welcoming the delegates from 14 countries. What an impressive group of professionals who have come together to share their best ideas. The 60 delegates had the opportunity to introduce themselves and give a brief assessment as to the condition of their real estate markets given the world economic crisis. It was again a reminder that ALL real estate is local. We also had the chance to highlight one or two of our top listings that may be of interest to a room of Realtors from around the world.

Day 2: The first conference session was titled Your International Marketing Plan - Marketing Your Listings Abroard. Michael Audet from the WAV Group was the moderator, with myself - owner of Caribbean Islands Realty , Olivia Hsu Decker - owner of Decker Bullock Sotheby’s International Realty - California, USA, and John Brian Losh - founder and president of Who’s Who In Luxury Real Estate, Seattle, Washington, as the panel members. The second session of the conference was titled Developing Your Global Brand - Perspectives From International Companies. Marilyn Wilson from the WAV Group was the moderator, with myself, Ann Chiasson - owner of Sea to Sky Premier Properties - Whistler, Canada, and Ole Jespersen - owner of IRG International Realty Group, Portugal. Some of the highlights that were a part of the open discussion were;

• In the midst of the global economic crisis we need to change/adapt or die.
• Personal relationships are still the key to serving our customers at the highest levels.
• The Internet is merely the beginning of connecting to people - but it is THE critical tool to master given how people want to start a relationship with a Realtor.
• Make sure your business is leading with revenue regarding any financial decisions. Running out of money is why good businesses close their doors. Cash is KING.
• The business and marketing tools provided to the Luxury Real Estate membership are vast in order to assist all of us in the expansion of our businesses. The key is for each of us to understand what they are and then implement them.

The day ended with me having pages of notes, and a significant expansion of my professional and personal global network. It has already opened many new doors for the marketing of our Caribbean real estate projects. We then enthusiastically moved on to the nightlife of Paris. Until my next report…fair winds!

By Jim Walberg of Caribbean Islands Realty

I was invited to speak at the Luxury Real Estate International Conference in Paris this month. London was my first stop.

We are spoiled with 85F degree weather in the Caribbean almost 365 days a year! Europe in January is COLD. The Who’s Who In Luxury Real Estate’s 4^th Annual International Conference was this month in Paris, and I was invited to be one of the presenters. Before the conference I traveled to London for a few days visiting one of the ten families that make up my “European family”. It is amazing to step into the pace of Europe with London as the first stop. It is one fast paced city!

My time in London was generally walking this beautiful city - from Buckingham Palace and Hyde Park, to the museums and art galleries. Another reason why I was in London was to meet with one of the partners of Deloitte - an international consulting firm for the top corporations of the world. My friend is in charge of their international real estate division. My meeting was to gather information regarding his view of what is predicted for Caribbean real estate markets in the midst of the global financial meltdown. It was a very insightful hour with him.

What we are seeing the past six months in Caribbean real estate sales is an abrupt slow down in sales that require a mortgage. And, the European buyers have almost disappeared. If you recall the Russians started showing up last year in the Caribbean and they are no longer visible. The real estate product that is predicted to thrive is the Fractional Deeded Ownerships, and the Residence Club products. The HOT market is expected to continue in the Dominican Republic. It was very useful to have this conversation given that we have already noticed these trends.

No matter what the economic conditions in the world we will still figure out a way to make lemonade out of lemons regarding real estate sales. Until my next report…fair winds.

By Patrick Randi Real Estate

Patrick Randi opened his real-estate agency on the left bank of Paris in 1989. Since that date, our office has been playing an important part in the sales on the left bank, which includes the famous V, VI and VII districts and arrondissements of Paris.

While the V district is the oldest, it features many XVI-century buildings, made out of stones and beamed ceilings. It is a colorful district, attracting many students (the Sorbonne), and the apartments are generally smaller and charming.

The VI district is a mixture between the V and the VII centuries, with different periods of construction going from the charming little place to the more exclusive residences.

The VII district is prestigious since, historically, in the XVII, XVIII and XIX centuries enormous mansions with unbelievable gardens were built. Most of them are occupied by French government institutions (Hotel Matignon, house of our Prime Minister), therefore leaving less space for privately owned properties. It is divided in two different areas: St Germain, which is busy with hotels, restaurants and high-end shopping, and the Champs de Mars (Eiffel Tower), which is more residential and quiet. Foreigners adore these three districts, the entire world enjoy walking their attractive streets, where watching is an endless game to play. The Marais is quite similar to the left bank, very active and intriguing.

We also sell many properties on the right bank, the most exclusive being the VIII-century (Avenue Montaigne) and the XVI district (Etoile). These areas are glamorous and we have for sale there a choice group of XIX district apartments. Foreigners also find there the Museums (Grand Palais, etc.), the restaurants and shopping, they are attracted by wider avenues and very large flats (10,000 square feet on Avenue Foch or Avenue d’Iéna), suitable for clients from Russia, the Persian Gulf and United States. In Neuilly, the exclusive suburb of Paris, we handle sales of large mansions with enormous gardens, it is a greener space.

Old prominent French families(most of them a client) live in all these privileged arrondissements, in secluded and amazing properties, featuring the parquet floors, fireplaces and moldings, marvelous showcases for precious family antiques.

The attraction of Paris all over the world is always growing and therefore it may take some time finding the property of one’s dream. Private individuals, as well as investors, are willing to place their money on an ever-increasing market and take advantage of a unique lifestyle.

In Paris, the supply has never been able to keep up with demand, and the prices increase accordingly.

Our most important sales have been to French tycoons, Europeans, Americans, Persian Gulf residents and now we start to welcome Russians and Asians, all of whom are looking for a typically Parisian apartment.

We are lucky enough to be confronted each day with this diversity and vast history. It is fun to encourage and help our foreign clients to «play the French», showing them the open air-markets, the quaint unknown areas, all the little «codes» that make up the French mind or way of life. If we take good care of our long-time French families, we enjoy very much meeting and helping clients from all over the world to settle in Paris for a while or why not forever?


Editor’s Note:
Patrick Randi is the Founder and President of Patrick Randi Real Estate in Paris, France. He is a distinguished member of Who’s Who in Luxury Real Estate. This is a great blog entry, giving us a taste of the French luxury market and Parisian delights. By the way, Paris is where the 4^th Annual Luxury Real Estate International Conference will be hosted. Be sure to sign up for it! The photo is from www.flickr.com/photos/tangysd/2139262874 and it is the copyright of skinnydiver.

By Jean-Yves Piton

With a devalued U.S. dollar against many other foreign currencies (i.e. Euro, Pound Sterling, etc.), now is the best time to invest in luxury real estate in the United States.

Whether this initiative is part of your diversification strategy or not, your property investment(s) in the United States will pay off in both the short and long term. Namely, your purchasing power is greater today in the United States and your ability to create greater returns in the future is increased tremendously.

To further exemplify present investment trends, I recently came across the following article “U.S. Real Estate Tops Foreign Investors’ List, Interest in Asia Grows” posted in the July 7, 2008 issue of www.Bostonsf.com.

The commentary reveals that, based on the results of the recent 16th Annual AFIRE Foreign Investment Survey, the U.S. real-estate market is at the top of global investors’ list.

Furthermore, “with 56% of the votes, the U.S. again emerged as the most stable and secure country for real-estate investment. No other country has ever come close to this number-one position. The second-ranking country has historically been the U.K., but this year Germany, with 10.5% of the votes, took that honor; Australia and the U.K., with nearly 9% of the votes, tied for third place.”

Agreeably, “this year, New York City and Washington, D.C. were named foreign investors’ top global cities. New York City leaped ahead by a substantial margin to be named the top global city, followed by Washington, D.C. and London in a tie for second place. Last year, New York City was ranked second globally and Washington was ranked fourth. Paris fell from second to fourth rank.”

Directly involved with global real estate on a day-to-day basis, I find such figures and trend eye-opening.


Editor’s Note:
Jean-Yves Piton is the Global Services Membership Manager for LuxuryRealEstate.com. He assists Bente Madtsen, the Director of Global Services, in expanding the LuxuryRealEstate.com brand into even more countries around the world. There are some wonderful opportunities available for U.S. buyers and sellers. One person’s downturn is another person’s bargain, so be sure to look for the good out there. The photo of the U.S. flag is from www.flickr.com/photos/tomsaint/2525886032 and it is the copyright of tomsaint11.

By Bente Madtsen

Did you know Luxury Real Estate will host the 4th Annual Luxury Real Estate International Conference in Paris, France January 21st – 23rd, 2009?

The conference will be held at Hotel du Louvre in one of Paris’ finest districts. This is the one conference you cannot afford to miss, whether you are located in the United States, Australia, Thailand, Brazil, United Kingdom, France, Spain or any other country in the network.

Meet your peers from other parts of the world, connect with them and expand your business. See the sights, partake in the shopping and feel the luxury of the most romantic city in the world.

If you are interested in more information please feel free to contact me at 206.695.4802.

We look forward to seeing you in Paris!


Editor’s Note:
Bente Madtsen is the Director of Global Services with LuxuryRealEstate.com. She works closely with a number of brokers around the world to ensure that our members benefit from our international reach. Our next conference is the 13th Annual Fall Conference in Philadelphia on October 11-14, 2008. Don’t miss out on either of these upcoming events because they can be quite helpful in unexpected ways.