A new index shows that real estate prices increased in Paris during summer 2014
According to a new property price index, real estate prices in Paris increased by almost 1% over the three months to September 2014.
We reported recently on the development of the new index, “Les Prix de l’Immobilier”, launched in early October by an association of banks, financial institutions, and realtors. The index is based on sales figures reported by realtors throughout France. It includes around 40% of available data on real estate transactions.
The database is updated monthly to include sales figures from the previous month. It thus claims to be more up to date than the sales figures published quarterly by the Notaires de France (the officials who handle real estate transactions). Their figures have been criticized for being several months old and not reflecting the current property market.
The figures for Paris show an increase of 1.7% in a year, to an average price of €8,504/m2. As ever, this figure conceals substantial variation both among and within arrondissements (districts).
Professor Michel Mouillart, who developed the index, attributes this increase partly to mortgage interest rates that continue at a historically low level.
According to the index, seven arrondissements saw a significant increase in prices (the 2nd, 4th, 5th, 7th, 8th, 10th, and 19th).
The 4th and 5th arrondissements registered increases of 11.7% and 11.5% respectively over a year. The index shows the average price in the 4th as €10,591/m2; in the 5th it is €10,742/m2. It’s worth noting that these are averages. Our experience is that average prices are higher and those for high quality properties in sought after neighborhoods of these arrondissements can go to €15,000-€20,000/m2.
Les Prix de l’Immobilier was launched only a few weeks ago. Until its accuracy can be validated over a period of months, caution needs to be exercised in interpreting the results.
Crédit Photo – Dinkum