In Paris, apartment prices fall while house prices increase
Despite a slight slowdown in January, sales volumes have remained strong in early 2016, in line with previous months, according to the Paris notaires. Prices for apartments have dropped slightly and are expected to stabilize while house prices will rise.
In the Île-de-France region, 35,940 homes were sold between November 2015 and January 2016, a 29% increase on the same period the previous year — in the detail this equates to a 30% increase in apartment sales versus 25% for houses.
Transactions between November 2015 and January 2016 were also 9% greater in number than for the average for the same period over the past decade (32,900 sales) and almost equivalent to numbers recorded during the market’s boom years.
These good results are despite the terrorist attacks that rocked the capital in November 2015, but had no lasting impact on the market’s performance.
Indeed, Paris itself was the most dynamic area in the region, with a 36% increase in transactions between Nov 2015-Jan 2016 compared to the same period the previous year. In the capital’s inner suburbs, the increase totaled 33% and 22% in the outer suburbs.
While price evolutions have remained very moderate, a slight increase of 0.4% has been recorded for houses with a small decrease of 0.7% noted for apartments.
The notaires believe these trends will continue in coming months, with an increase for houses, whose prices are “traditionally more volatile.” Given past developments and recent upward price trends noted in preliminary sales agreements, the notaires expect an annual price increase of 2 to 3% for house prices in the region.
Prices per square meter for Parisian apartments currently average out at 8,000 euros. They are expected to stabilize, reaching an average of 8,030 euros per m2 in May 2016.
Photo credit: Wikimedia / Thierry