Paris was voted for several years the best risk adjusted investment location in the PricewaterhouseCoopers Urban Land Institute Survey. Additionally, it is the most visited city in the world and is very well placed to suffer less from the current recession than most other countries.
In Paris, location is everything and the performance of an investment will vary from street to street. The third and fourth arrondissement are good areas to look in, indeed, there is very heavy rental demand and prices here are lower than other high demand areas such as the sixth arrondissement.