Luxury real estate in Europe has gotten a lot cheaper in recent months with the stronger dollar and rising inventories. It’s an 18th century chateau in Carpentras that’s been restored with modern amenities. It’s got more than 16,000 square feet of living space, with seven bedrooms, a grand entrance hall, reception rooms, a dining room, kitchen, library and a master bedroom suite with a dressing room.
The property is listed for 11 million euros. At exchange rates a year ago, that would have been around $15 million. Today, that’s about $11.7 million—creating an effective price cut of more than $3 million.
Prime property in Paris is now running around $2,000 per square foot, according to Harvey. Compare that $2,700 per square foot for prime property in Manhattan, according to estimates from Jonathan Miller of the appraisal firm Miller Samuel.
The currency drop isn’t the only thing helping American buyers of European homes. With weaker economies and more of the wealthy moving to lower-tax countries, inventories for high-end real estate have been rising, and prices have been falling, throughout the region.
And it’s not just castles and pieds-a-terre, many American companies and investors have been coming to Europe for deals on commercial real estate and other investments given the attractive values, Harvey said. Many of those Americans are now also looking at real estate investments for themselves, he said. Read more…