France's 'Rich Tax' Creates Real Estate Bonanza

Luxury homes in Paris had been more in demand than in supply in recent years, thanks to a boom in high end real estate markets across Western Europe. Whether intended as investments or civilized pieds-a-terre, properties in the best neighborhoods have been highly sought-after. Increasingly, pricey acquisitions for the ultra-wealthy come from the Middle East, as well as Russia, China and and other emerging economies.

That's all changed since the new French president, Francois Hollande, vowed to levy a "rich tax" of 75 percent on the highest incomes. The country's ultra wealthy offering their homes for sale in numbers that give buyers more room to bargain.

Click ahead to see a few of the properties that some of Paris's top brokers have begun shopping since Hollande began threatening to soak the rich.

By Robert Frank and Paul O'Donnell
Posted 19 Oct 2012

Asking: €2.6 million ($3.38 million)

This relatively snug two-bedroom apartment occupies the two top floors of a five-story building in the Eighth Arrondissement, near the Place de la Concorde and the monumental Greek temple of a Catholic Church known as the Madeleine. The lower floor has a fully equipped kitchen, living room and a dining room, all with sleek ebonized floors and floor-to-ceiling casement windows. The upper floor has two bedrooms and a bath with a "dressing room" for Madame.

Asking: € 8.8 million ($11.46 million)

This multi-level home is not far from where former French president Nicolas Sarkozy lives with his wife, Carla Bruni, in Villa Montmorency. The three-level, elegantly refurbished townhouse boasts seven bedrooms, including a master suite with a sitting room and its own small kitchen. In the basement is a playroom, a wine cellar, and a backup kitchen for entertaining large groups.

Asking: €6.3 million ($8.2 million)

You arrive in this spacious duplex penthouse atop a classic 19th century building in the Seventh via a private elevator on the fourth floor. The elevator door opens into a living room with a balcony, a full kitchen plus a kitchenette, and a library. The fifth floor has a master with an outdoor terrace, an office, dressing room, and a sunroom with panoramic views.

Asking: €14.36 million ($18.6 million)

Located in an exclusive gated community, this five story townhouse has a movie ready media room, a climate controlled wine cellar, a poker room, and an office to satisfy the modern millionaire. It evokes the grand style of a bygone age. The large, fully equipped kitchen and dining area adjoin a vintage metal porch. The master suite — with two en suite bathrooms — as well as the four other bedrooms all have modernized walk-in closets.

Asking: Over €10 million (over $13 million)

On a high floor of a building near the Arc de Triumph, this 3,400 square-foot, sun-filled apartment has views of Paris, which includes the Eiffel Tour and the Bois de Boulogne. The luxurious living room, paneled dining salon and other public rooms are all linked by an elegant foyer. The master bedroom and four other bedrooms each have their own bathrooms, but perhaps the best amenity— especially in this part of town — is the apartment's parking for two cars.

Asking: €35 million ($45.3 million)

Close to the international resort of Saint Tropez, this sumptuous villa was built by an aristocratic family. Although Riviera mansions tend to run small, this one's location on the Mediterranean in the relatively quiet hamlet of Les Issambres, its Provencal flair and pedigree — it has hosted old school French celebrities like Edith Piaf and Maurice Chevalier—make it a steal for the right buyer.