Hermès sets record with multimillion-dollar Paris property purchase

The Sixth Arrondissement in Paris is akin to New York's Upper East Side - the most expensive and luxurious area in the entire city. Property here is approximately $22,718 per square foot. Given the neighborhood's reputation, some might say this high valuation is unsurprising. A luxury brand recently purchased a property for that price per square foot.

Hermès has purchased property number 17 on Rue de Sèvres in the Sixth Arrondissement. The location is undoubtedly attractive, though not budget-friendly. 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, offering potential clients great convenience. The building that houses the boutique once featured 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 center for Holocaust survivors. Subsequently, a public swimming pool was built there, later converted into commercial space.

The building has been standing since 1935. Interestingly, Hermès has preserved the swimming pool inside.

The €230,000 per square foot sets a record. However, Paris is generally not cheap. Housing prices range between approximately $986 and $1,478 per square foot.

Until recently, Hermès had been renting the property but decided to purchase it outright for its boutique. According to the French daily Ouest-France, there's a trend called "Monopoly in Nature," where luxury brands are buying properties in prestigious districts permanently.

In the last few months, luxury brands have purchased at least $6.8 billion worth of properties in Paris.