Paris, with its unique real estate forces, has continued to show a stable and attractive price increase over the course of 2016 and into the summer of 2017. Despite the current economic climate within France, it couldn’t be a better time to invest in Paris property. Yes, prices are high, but the steady growth will prove a worthy investment, especially with the low interest rates. Local French buyers have not been hesitant in taking advantage of these trends and are making the most of the current dynamic Paris real estate market, resulting in ever-increasing volumes of sales.
In the first quarter of 2017, prices reached 8 450€/m2. With an increase of 5.5% over the past year, the Chambre des Notaires de Paris forecast that Paris property prices will continue to rise steadily as confidence rises, with a possible annual increase of up to 7% by mid 2017. With over 10 000 properties sold in the first quarter of 2017, the Paris real estate market has seen the best first quarter sale figures since 1991!
The Paris real estate market has bounced back since the slight fall in sales seen in previous years, with high demand and limited supply again being the norm. This has kept prices of real estate in Paris rising steadily. However, apartments of a high quality in the more sought-after areas sell very quickly while the less appealing apartments in less popular areas can stagnate on the market if the price is not attractive. In the fourth quarter of 2016, the difference in mean price between the most expensive quartier (Odeon) and the least expensive (Pont de Flandre) is over 8 500€/m². The most expensive areas are the 6th and 7th arrondissements, and the 19th and 20th are the most affordable.
Interest rates are expected to remain low and this is driving the Paris real estate market, especially with local buyers. International investors are returning to real estate in Paris due to the continued performance and stability of the market. While the Brexit referendum has resulted in uncertainty for the British buyers due to the reduction in the value of the pound, possibilities remain high for those wishing to take advantage of the Parisian lifestyle.
So, despite recent events, Paris Property remains a very attractive investment in a sometimes-uncertain international market. Let Flat Hunter® Property Search Experts help you find your ideal choice of Paris real estate.
Analysis by Flat Hunter Property Search Experts, August 2017
*Note: The quoted prices are average prices only. While drawn from the most current available sources at the time of publication, the figures may be slightly out of date as a result of delays in information availability. Further, the average prices are based on values of all apartments on the market, from ground floor apartments to upper level flats with a view. From the experience of our Property Search Experts in the field, we have observed an average of €12,000/m2 for the most desirable apartments.