Clean Air: The Next Luxury Apartment Perk

When buyers of real-estate developer John Roe’s seven condos walk into their new Manhattan homes sometime after May next year, Mr Roe wants them to breathe deep and feel good about it. That’s because he has spared no expense on air quality.

The boutique building, called Charlotte of the Upper West Side, is being constructed with an airtight external shell. Fresh air, tempered, filtered and then treated with ultraviolet light, will be constantly pumped into each room, while the same amount of used air is extracted. If a resident is worried—say they muttered “God bless you” to a sniffly dinner guest a worrisome number of times last night—they can boost the air exchange in their unit by 120%. Buyers of Mr Roe’s properties will be well aware of how special their air is: Marketing materials, which typically might describe the amenities and luxe touches, include elaborate diagrams and animations describing how the air system works.

The cost of all this magnificent air? The cheapest unit will list at $11 million (A$14.5 million), while penthouses will hit $18 million (A$23.8 million), Mr Roe says. Those price tags are largely due to the location, size and luxury finishes of the units, but the air system wasn’t cheap, either, Mr Roe says. Still, like everything else in real estate that was once the preserve of the elite—think roof decks, gyms, stainless steel—these technologies were already on a path of increased adoption and lower cost. Covid-19 has poured accelerant on the trend.

Executives at some of the country’s largest developers say they believe that by 2030 such systems will be commonplace in all residential development. Buildings with a high degree of mechanical ventilation and energy efficiency will be routine. Indoor sensors will identify when air quality has dropped and automatically increase ventilation. Systems will aim to mitigate outdoor air problems, such as general pollution or smoke from bushfires, as well as indoor threats, such as a sick resident, a burned pot roast or overenthusiastic spraying of lemon polish. Homes will feature dynamic air systems with a “crisis mode” that can upgrade filtration and run a disinfection protocol. Once the threat has been neutralised, systems will return to status quo to save energy.

At the same time, questions remain about what technology is most effective and worth the cost in both dollars and energy use. Will home buyers care about air quality when Covid-19 is no longer affecting daily life?

Scott Walsh, a vice president and project director for Lendlease, a global real estate and investment firm, says he believes that, armed with a new understanding about air quality, consumers will demand homes that improve it.

Already, developers are drawing up blueprints with a focus on fresh air flow, filtration and purification.

“Air quality is now front of mind for our buyers,” says Elisa Orlanski Ours, chief planning and design officer at Corcoran Sunshine, the new development wing of the Corcoran Group real-estate brokerage. Her developer clients are currently exploring how to filter and disinfect the air in both public and private spaces, she says.

The most cutting edge technology today, which will gradually become less expensive and more widespread, is an “energy recovery ventilator,” says Andrea Mancino, executive vice president of New York for Bright Power, an energy management consultant. These are ventilation systems that recapture energy from hot air leaving the building to heat or cool the filtered fresh air going back in.

Air quality experts believe that the wide adoption of MERV 13 or 14 air filters—which the ASHRAE trade group, formerly known as the American Society of Heating, Refrigerating and Air Conditioning Engineers, recommended in April—will be sufficient to manage major particle-related problems. MERV, or “minimum efficiency reporting value,” describes the efficiency of a filter at trapping particles of different sizes.

The pandemic has brought a jolt of interest to systems that go beyond filtering undesirable particles out of the air. Instead, they act upon particles to destroy them, through ultraviolet light, UV photo oxidation, ionization and other tactics. Scientific studies are expected to shed light on which methods and systems are most effective in a home.

“All these products work somewhat differently, and for a lot of these new products, we don’t have good studies to know how well they actually work,” says Max Sherman, the residential team leader of ASHRAE’s epidemic task force.

Gandolfo Schiavone, president of Sav Mor Mechanical, an HVAC company, says that since July his company has installed over 300 air purifiers on buildings’ existing ventilation systems around the New York area. Blueair, a Swedish maker of portable air purifiers that Unilever bought in 2016, has seen triple-digit growth this year, says chief product officer Jonas Holst.

Mr Holst believes that the U.S. will eventually buy air purifiers at the same rate as Asia. “In the U.S., the penetration rate for purifiers is about 15%. In Japan and Korea, about 40% of homes have an air purifier,” he says.

Clean Air — Mr Levitt examines a MERV 13 filter at Lakehouse. Air quality experts believe that the wide adoption of MERV 13 or 14 filters will be sufficient to manage major particle-related problems. PHOTO: DAVID WILLIAMS FOR THE WALL STREET JOURNAL

Sensor technology that analyzes indoor air quality is already in use in a handful of new luxury homes. Delos, which founder Paul Scialla describes as a “wellness real estate and technology company,” sells a system that monitors and mitigates air, water and light quality. Through an app, homeowners can see when their air quality drops below optimal standards; the built-in system then triggers ventilation.

In the near future, sensor-based technology that not only detects problems, such as cleaning chemicals in the air, but also responds by, say, automatically ventilating a space, will become widespread, as more manufacturers create better and cheaper systems, contractors learn about them and homeowners demand them, predicts Ryan Donovan, senior category manager for indoor air quality at Ferguson Enterprises, a seller of plumbing and HVAC products. Systems will also become more sensitive: “In 10 years, I do think it’s possible that the sensor will tell you there’s a flu virus,” Mr Donovan says.

Insiders compare the current state of the air quality industry to the early days of the organic food movement, before a U.S. Department of Agriculture standard was formalised. Today, there are a handful of voluntary certifications that speak to air quality, including Passive House and the WELL Building standard, founded by Mr Scialla’s Delos. Whether such labelling will eventually cohere into a government-backed standard, or lead to regulation, isn’t known.

At Lakehouse, a 196-unit condo building in Denver, developer Brian Levitt designed features he hopes will help him achieve the WELL certification “gold” level, he says. The apartments are for sale for US$499,000 to US$1.825 million. Mr Levitt says that residents will get their own ventilated air, furnishings were “off-gassed” in a warehouse for months, and he used low VOC paints and glues. “Buyers may not be willing to pay a premium for WELL yet, but we do think it increased our sales absorption,” and lowers resistance to multifamily living, says Mr Levitt, president of NAVA Real Estate Development.

Air quality is a concern across the price spectrum. Michael Bohn, senior principal at Studio One Eleven, an architecture and design firm based in Long Beach, Calif., redesigned an affordable-housing complex in Santa Ana, Calif., after the pandemic struck. It will now include MERV 14 filters and balconies for each unit.

Indoor air quality cannot widely improve until the building industry finds ways to ventilate, heat, cool, filter and purify air in an energy efficient way. Newly-constructed buildings have the best shot, says Dr Sherman: They can be designed to avoid leakage of air and can use the most efficient mechanical systems. Retrofitting existing buildings while meeting green building standards that will eventually become law is harder, says Derek Tynan, a project engineer with Efficient Energy Compliance, a consulting firm for commercial buildings in New York.

Developers and engineers believe one of the answers lies in dynamic systems that can boost air quality mitigations in times of crisis—thus using more energy—and then reset to a more energy-efficient setting when it is safe to do so.

It’s not clear whether pandemic shock will lead to lasting change. Dan Holohan, an author of 24 books about the steam heat industry, has studied engineering manuals during and after the 1918 flu pandemic. Back then, there was lots of discussion of “the fresh air movement,” but once it was all over, so was any mention of infectious disease, says Mr Holohan.

“Once we get vaccinated, people will forget this ever happened and get back to doing the cheapest thing,” he says.

PARIS —Paris has long been a byword for luxurious living. The traditional components of the upscale home, from parquet floors to elaborate moldings, have their origins here. Yet settling down in just the right address in this low-rise, high-density city may be the greatest luxury of all.

Tradition reigns supreme in Paris real estate, where certain conditions seem set in stone—the western half of the city, on either side of the Seine, has long been more expensive than the east. But in the fashion world’s capital, parts of the housing market are also subject to shifting fads. In the trendy, hilly northeast, a roving cool factor can send prices in this year’s hip neighborhood rising, while last year’s might seem like a sudden bargain.

This week, with the opening of the Olympic Games and the eyes of the world turned toward Paris, The Wall Street Journal looks at the most expensive and desirable areas in the City of Light.

The Most Expensive Arrondissement: the 6th

Known for historic architecture, elegant apartment houses and bohemian street cred, the 6th Arrondissement is Paris’s answer to Manhattan’s West Village. Like its New York counterpart, the 6th’s starving-artist days are long behind it. But the charm that first wooed notable residents like Gertrude Stein and Jean-Paul Sartre is still largely intact, attracting high-minded tourists and deep-pocketed homeowners who can afford its once-edgy, now serene atmosphere.

Le Breton George V Notaires, a Paris notary with an international clientele, says the 6th consistently holds the title of most expensive arrondissement among Paris’s 20 administrative districts, and 2023 was no exception. Last year, average home prices reached $1,428 a square foot—almost 30% higher than the Paris average of $1,100 a square foot.

According to Meilleurs Agents, the Paris real estate appraisal company, the 6th is also home to three of the city’s five most expensive streets. Rue de Furstemberg, a secluded loop between Boulevard Saint-Germain and the Seine, comes in on top, with average prices of $2,454 a square foot as of March 2024.

For more than two decades, Kyle Branum, a 51-year-old attorney, and Kimberly Branum, a 60-year-old retired CEO, have been regular visitors to Paris, opting for apartment rentals and ultimately an ownership interest in an apartment in the city’s 7th Arrondissement, a sedate Left Bank district known for its discreet atmosphere and plutocratic residents.

“The 7th was the only place we stayed,” says Kimberly, “but we spent most of our time in the 6th.”

In 2022, inspired by the strength of the dollar, the Branums decided to fulfil a longstanding dream of buying in Paris. Working with Paris Property Group, they opted for a 1,465-square-foot, three-bedroom in a building dating to the 17th century on a side street in the 6th Arrondissement. They paid $2.7 million for the unit and then spent just over $1 million on the renovation, working with Franco-American visual artist Monte Laster, who also does interiors.

The couple, who live in Santa Barbara, Calif., plan to spend about three months a year in Paris, hosting children and grandchildren, and cooking after forays to local food markets. Their new kitchen, which includes a French stove from luxury appliance brand Lacanche, is Kimberly’s favourite room, she says.

Another American, investor Ashley Maddox, 49, is also considering relocating.

In 2012, the longtime Paris resident bought a dingy, overstuffed 1,765-square-foot apartment in the 6th and started from scratch. She paid $2.5 million and undertook a gut renovation and building improvements for about $800,000. A centrepiece of the home now is the one-time salon, which was turned into an open-plan kitchen and dining area where Maddox and her three children tend to hang out, American-style. Just outside her door are some of the city’s best-known bakeries and cheesemongers, and she is a short walk from the Jardin du Luxembourg, the Left Bank’s premier green space.

“A lot of the majesty of the city is accessible from here,” she says. “It’s so central, it’s bananas.” Now that two of her children are going away to school, she has listed the four-bedroom apartment with Varenne for $5 million.

The Most Expensive Neighbourhoods: Notre-Dame and Invalides

Garrow Kedigian is moving up in the world of Parisian real estate by heading south of the Seine.

During the pandemic, the Canada-born, New York-based interior designer reassessed his life, he says, and decided “I’m not going to wait any longer to have a pied-à-terre in Paris.”

He originally selected a 1,130-square-foot one-bedroom in the trendy 9th Arrondissement, an up-and-coming Right Bank district just below Montmartre. But he soon realised it was too small for his extended stays, not to mention hosting guests from out of town.

After paying about $1.6 million in 2022 and then investing about $55,000 in new decor, he put the unit up for sale in early 2024 and went house-shopping a second time. He ended up in the Invalides quarter of the 7th Arrondissement in the shadow of one Paris’s signature monuments, the golden-domed Hôtel des Invalides, which dates to the 17th century and is fronted by a grand esplanade.

His new neighbourhood vies for Paris’s most expensive with the Notre-Dame quarter in the 4th Arrondissement, centred on a few islands in the Seine behind its namesake cathedral. According to Le Breton, home prices in the Notre-Dame neighbourhood were $1,818 a square foot in 2023, followed by $1,568 a square foot in Invalides.

After breaking even on his Right Bank one-bedroom, Kedigian paid $2.4 million for his new 1,450-square-foot two-bedroom in a late 19th-century building. It has southern exposures, rounded living-room windows and “gorgeous floors,” he says. Kedigian, who bought the new flat through Junot Fine Properties/Knight Frank, plans to spend up to $435,000 on a renovation that will involve restoring the original 12-foot ceiling height in many of the rooms, as well as rescuing the ceilings’ elaborate stucco detailing. He expects to finish in 2025.

Over in the Notre-Dame neighbourhood, Belles demeures de France/Christie’s recently sold a 2,370-square-foot, four-bedroom home for close to the asking price of about $8.6 million, or about $3,630 a square foot. Listing agent Marie-Hélène Lundgreen says this places the unit near the very top of Paris luxury real estate, where prime homes typically sell between $2,530 and $4,040 a square foot.

The Most Expensive Suburb: Neuilly-sur-Seine

The Boulevard Périphérique, the 22-mile ring road that surrounds Paris and its 20 arrondissements, was once a line in the sand for Parisians, who regarded the French capital’s numerous suburbs as something to drive through on their way to and from vacation. The past few decades have seen waves of gentrification beyond the city’s borders, upgrading humble or industrial districts to the north and east into prime residential areas. And it has turned Neuilly-sur-Seine, just northwest of the city, into a luxury compound of first resort.

In 2023, Neuilly’s average home price of $1,092 a square foot made the leafy, stately community Paris’s most expensive suburb.

Longtime residents, Alain and Michèle Bigio, decided this year is the right time to list their 7,730-square-foot, four-bedroom townhouse on a gated Neuilly street.

The couple, now in their mid 70s, completed the home in 1990, two years after they purchased a small parcel of garden from the owners next door for an undisclosed amount. Having relocated from a white-marble château outside Paris, the couple echoed their previous home by using white- and cream-coloured stone in the new four-story build. The Bigios, who will relocate just back over the border in the 16th Arrondissement, have listed the property with Emile Garcin Propriétés for $14.7 million.

The couple raised two adult children here and undertook upgrades in their empty-nester years—most recently, an indoor pool in the basement and a new elevator.

The cool, pale interiors give way to dark and sardonic images in the former staff’s quarters in the basement where Alain works on his hobby—surreal and satirical paintings, whose risqué content means that his wife prefers they stay downstairs. “I’m not a painter,” he says. “But I paint.”

The Trendiest Arrondissement: the 9th

French interior designer Julie Hamon is theatre royalty. Her grandfather was playwright Jean Anouilh, a giant of 20th-century French literature, and her sister is actress Gwendoline Hamon. The 52-year-old, who divides her time between Paris and the U.K., still remembers when the city’s 9th Arrondissement, where she and her husband bought their 1,885-square-foot duplex in 2017, was a place to have fun rather than put down roots. Now, the 9th is the place to do both.

The 9th, a largely 19th-century district, is Paris at its most urban. But what it lacks in parks and other green spaces, it makes up with nightlife and a bustling street life. Among Paris’s gentrifying districts, which have been transformed since 2000 from near-slums to the brink of luxury, the 9th has emerged as the clear winner. According to Le Breton, average 2023 home prices here were $1,062 a square foot, while its nearest competitors for the cool crown, the 10th and the 11th, have yet to break $1,011 a square foot.

A co-principal in the Bobo Design Studio, Hamon—whose gut renovation includes a dramatic skylight, a home cinema and air conditioning—still seems surprised at how far her arrondissement has come. “The 9th used to be well known for all the theatres, nightclubs and strip clubs,” she says. “But it was never a place where you wanted to live—now it’s the place to be.”

With their youngest child about to go to college, she and her husband, 52-year-old entrepreneur Guillaume Clignet, decided to list their Paris home for $3.45 million and live in London full-time. Propriétés Parisiennes/Sotheby’s is handling the listing, which has just gone into contract after about six months on the market.

The 9th’s music venues were a draw for 44-year-old American musician and piano dealer, Ronen Segev, who divides his time between Miami and a 1,725-square-foot, two-bedroom in the lower reaches of the arrondissement. Aided by Paris Property Group, Segev purchased the apartment at auction during the pandemic, sight unseen, for $1.69 million. He spent $270,000 on a renovation, knocking down a wall to make a larger salon suitable for home concerts.

During the Olympics, Segev is renting out the space for about $22,850 a week to attendees of the Games. Otherwise, he prefers longer-term sublets to visiting musicians for $32,700 a month.

Most Exclusive Address: Avenue Junot

Hidden in the hilly expanses of the 18th Arrondissement lies a legendary street that, for those in the know, is the city’s most exclusive address. Avenue Junot, a bucolic tree-lined lane, is a fairy-tale version of the city, separate from the gritty bustle that surrounds it.

Homes here rarely come up for sale, and, when they do, they tend to be off-market, or sold before they can be listed. Martine Kuperfis—whose Paris-based Junot Group real-estate company is named for the street—says the most expensive units here are penthouses with views over the whole of the city.

In 2021, her agency sold a 3,230-square-foot triplex apartment, with a 1,400-square-foot terrace, for $8.5 million. At about $2,630 a square foot, that is three times the current average price in the whole of the 18th.

Among its current Junot listings is a 1930s 1,220-square-foot townhouse on the avenue’s cobblestone extension, with an asking price of $2.8 million.