Recently, a Qatari buyer paid 44 million euros ($58.5 million) for a 2,600 square metre 19th-century mansion near the Champs-Elysees. He was not alone. Paris' luxury market is in comeback mode.

Till recently the city's market for luxury residences priced one million euros and above had been (at best) stagnating. Wealthy French people like actor Gerard Depardieu decided to go abroad to escape President Francois Hollande's increasingly burdensome tax regime. The resulting glut precipitated a price drop of more than 10% in a year. With prices now reduced, Paris upscale property suddenly became attractive to foreign investors. More so, when they realized that most new tax measures do not apply to them. 

Prices in London's upscale Knightsbridge and South Kensington are about 20,000 euros  (US$27,604) per square meter, and in New York's Upper East Side starts at 15,000 euros (US$20,703). Similar properties in Paris's 16th arrondissement are priced at just 10,000 euros (US$13,802) per square metre, according Barnes, a property brokerage specializing in the luxury market. 

Not all foreign buyers are in Paris solely for the investment opportunity. Many wealthy buyers from the Middle East want to get away from the growing unrest in their region. 

Not all foreign buyers are in Paris solely for the investment opportunity. Many wealthy buyers from the Middle East want to get away from the growing unrest in their region.