Follow the Starving Artists

Date: 10/02/2005

International Living Postcards-- Saturday Edition
Saturday, Sept. 3, 2005
Paris, France

Dear International Living Reader,

The Jordaan district was built by the city of Amsterdam in the 1600s to house low income workers. It fell to ruin over the centuries and was almost demolished in the 1970s, but was saved by the locals at the time: painters, musicians, poets, sculptors, and writers.

These artists moved into the area because of low rents (and, sometimes, no rents) thirty years ago, although none of them can claim to be the district's first starving artist (Rembrandt has that honor).

Today the Jordaan is one of the most popular addresses in the city, its streets lined with fashion boutiques, top restaurants, and plush canal-side apartments, most artists priced out of the market.

The Jordaan is not unique. Greenwich Village…Soho…Dublin's Temple Bar…Oltrarno in Florence…all have a similar story to tell.

Time and again, artists move into an ailing area, make it trendy…and the money follows.

I know of two areas where this is happening right now, where you might be able to get in on the right side of the gentrification:

Batignolles, Paris. The mayor of Paris, Bertrand Delanoë, has returned to his city this month along with every other Parisian. Top of his post- to-do list is renovating the Batignolles area in the 17th arrondissement. Cleaning up Batignolles was part of the city's Olympic bid for the 2012 Games. As you know, the Olympic Committee was more impressed with London, but it looks like Batignolles is still going to get the funds set aside for it last year.

. The mayor of Paris, Bertrand Delanoë, has returned to his city this month along with every other Parisian. Top of his post-rentrée to-do list is renovating the Batignolles area in the 17th arrondissement. Cleaning up Batignolles was part of the city's Olympic bid for the 2012 Games. As you know, the Olympic Committee was more impressed with London, but it looks like Batignolles is still going to get the funds set aside for it last year.

A friend in Paris likens this part of the city to a "new Bastille," where you'll find artists enjoying brunch on Sunday mornings. (Hmmm…since when can real artists afford to "brunch?" This market may be too far gone already…)

You can currently buy an apartment in Batignolles for 4,385 euro per square meter. To buy in the best area in the 17th, Ternes, will cost you, on average, 5,176 euro per square meter. That's an 18% difference in real estate values. Will Delanoë's planned improvements help raise Batignolles prices to Ternes levels? Our man in Paris, Jocelyn Carnegie, thinks it's possible. Contact him at Findproperty@internationalliving.com.

Barracas, Buenos Aires. If we turn out attention to the other side of the world, we see a similar situation under way in Buenos Aires, Argentina. Barracas is an old commercial area in southern B.A. After the recession, the factories (mostly textile) in this area closed down or moved to a more economical location. Thanks to government incentives, developers are renovating these factories, and many have become apartments.

. If we turn out attention to the other side of the world, we see a similar situation under way in Buenos Aires, Argentina. Barracas is an old commercial area in southern B.A. After the recession, the factories (mostly textile) in this area closed down or moved to a more economical location. Thanks to government incentives, developers are renovating these factories, and many have become apartments.

You'll find artists and art studios in Barracas, which is near San Telmo, one of the better areas in B.A. and popular with tango enthusiasts.

To buy a new-built apartment in Barracas costs $80 per square foot, less than half the price of Palermo, the area currently most popular with tourists looking for short-term rentals.

Paul and Maria Reynolds, IL's real estate team on the ground in Buenos Aires, can tell you more: Argentina@Internationalliving.com.

International real estate can be the safest investment in your portfolio… and can be simple, too. I specialize in finding easy real estate buys… "no brainers" that can set you up for the retirement of your dreams. Identifying ups and downs…booms and busts…cycles…this is my beat at Global Real Estate Investor. Take a look.

Lief Simon
Real Estate Editor, International Living

P.S. Carol Milligan, our woman on the scene in Italy, reports one more area to watch: the medieval town of Viterbo, close to Rome and Tuscany. Already a favorite with artists, real estate values have started rising as the moneyed classes move in, but prices are still reasonable. Contact Carol for more details: italy@internationalliving.com.