Paris Real Estate Market in February, March and April: 33% jump in Transactions
The Paris Notaire have released their monthly update on the Paris real estate market. The latest edition concerns the months of February, March and April.
After a first quarter report that recorded 70% more transactions than the same period last year, the next Notaire release was unlikely to better such a figure. But talking of a ‘slow’ in the market is misleading, as the months of February, March and April still saw 33% more transactions than the same period last year.
A total of 9,880 properties were sold in the capital in the three months ending May 1, with 44,270 in the whole Ile-de-France region. The Notaires have recorded a price per m2 average in the city of €8,510 by the end of the period, 5.5% higher than 12 months earlier.
How long would it take for every property to have been sold?
Each report has a slightly new focus to complement the official transaction and price statistics. This time round, they worked out how many years it would take, at the current rate, for every property in the Ile-de-France region to have changed hands at least once.
The average annual number of sales for the last decade is 167,000 properties. With some 5.6 million total units in the whole agglomeration, according to INSEE, this means 3% of properties are bought and sold each year. So, for the whole of the Ile-de-France region to have seen a transaction it would therefore take 33 years for the Paris real estate market to go through a ‘cycle’.
They point out that a large number are never sold, including social housing (HLM) – 1.2 million properties – and institutionally-owned prestigious buildings. Subtracting these from the figures leads to a slightly shorter period of 26 years.
Change in Paris real estate market prices over time
Below is a timeline of the price movements for existing apartments in Paris and Petite Couronne (the inner ring of the Paris suburbs). The dotted line towards the end is the Notaire’s prediction of where the market is heading, with the adjoining figures their predictions for the end of July.
image © Pixabay