Hermes acquires historic Paris property at record rate
The Sixth Arrondissement in Paris is akin to New York's Upper East Side - the most expensive and luxurious area in the entire city. A square metre of property has been valued at approximately €22,300. Some might say it’s no surprise, given the neighbourhood. A luxury brand has purchased the property at that price per square metre.
Property number 17 on Rue de Sèvres in the sixth arrondissement was purchased by the Hermes boutique. The location itself is not exactly budget-friendly but undoubtedly attractive. The street borders the seventh arrondissement, home to numerous tourist attractions, including the Eiffel Tower.
The boutique's new location will be adjacent to a five-star hotel, so potential clients won't have far to go. The building housing the boutique was once home to a luxurious art deco-style swimming pool frequented by hotel guests.
During the German occupation, the building was taken over by the Gestapo. Later, it briefly served as a centre for Holocaust survivors. Afterwards, a public swimming pool was built there, later converted into commercial space.
The building has been around since 1935. Interestingly, Hermes has not removed the swimming pool inside.
Paris sets records. Housing prices are staggering
The €22,300 per square metre is a record rate. However, Paris is generally not cheap. Housing prices range from about €10,000 to €15,000 per square metre.
Until now, Hermes has been renting the property but decided to purchase it outright for its boutique. French daily Ouest-France reports on a "Monopoly in nature phenomenon," where luxury brands permanently buy properties in prestigious districts.
In the last few months alone, luxury brands have purchased at least €6.5 billion of properties in Paris.
