Property prices to remain stable in Paris in early 2016
The notaires of Paris and Île-de-France expect real estate prices to remain stable in the capital during the first quarter of 2016, at around 8,000 euros per square meter. Meanwhile sales volumes experienced strong growth at the end of 2015.
Real estate prices seem on their way to steadying in Paris, ending what professionals have dubbed a “yo-yo” of property costs in the capital. According to a recent forecast by the Île-de-France region notaires, the first three months of the year should see prices remain around the 8,000 euro per square meter mark.
Basing their predictions on a close analysis of preliminary contracts and sales agreements, the notaires specify that this expected stability over the first quarter of the year would still involve an “annual growth of 1.4%, related to the price increase observed last summer”.
In the Parisian inner suburbs overall stability will be due to a slight decrease of apartment prices paired with a small increase expected for houses, of “between 3 and 4% by end of March 2016”, according to the report.
Between November 2014 and November 2015, apartment prices varied very little in Paris proper (-0.1%, at close to 8,000€/m2). They fell by 1.8% in the inner suburbs — petite couronne — to 4,240€/m2 and by 2.1% in the outer suburbs — grande couronne — to 2,920€/m2.
Across the Île-de-France region, prices for houses remained virtually stable, growing by 0.1%. Thus, average prices for homes in the petite couronne and grande couronne still equal 340,000 and 271,400 euros respectively.
Where transaction numbers are concerned, the notaires note “historically high” activity levels. Over 42,000 housing transactions took place in the Île-de-France region between September and November 2015, which is 42% more than across the same period in 2014. This total is also 21% superior than the average of the last 10 years and “up 9% compared to the period of high activity of 1999-2007”.
Photo credit: Wikimedia / Sergey Galyonkin