Paris Price Per Square Meter Approaching Record High
The Notaires of Paris are predicting that we will see the 2012’s Paris price per square meter record broken this year. Also, the luxury property market has wind in its sails again after stagnation in the last few years.
The start of 2017 shows a Paris close to eclipsing the record levels seen in August 2012 prior to the Eurozone crisis. The Notaires of Paris – the profession that finalizes property transactions in the city – have published their numbers for 2016 and start of 2017, with predictions for the current quarter.
The Paris price per square meter average at the beginning of the quarter stands at €8,340, a 4.4% increase on the same point last year. They are predicting a figure of €8,520 by April, eclipsing the record of €8,460 set three and a half years ago. The figure for apartments in the suburbs of Paris is now €5.430/m2.
Only four arrondissements remain below €8,000/m2 (The 12th, 18th, 19th and 20th, with the 19th the only below €7,000/m2). Half of them saw 5% growth or more during 2016. See a map below of Paris’ arrondissement averages, courtesy of the Notaries of Paris.
While transactions have fallen in Paris proper, this is because of a lack of supply, which is also the reason behind price growth. Meanwhile, the suburbs’ price growth is down to ballooning transactions. The Ile-de-France region saw 160,000 in total (of 848,000 nationwide), 110,000 apartments and 50,000 houses.
Luxury property market picking up the pace
Coldwell Banker, a luxury real estate agency in France, have reported a revitalized luxury property industry in France, largely thanks to Brexit. According to their president, 50,000 extra transactions will take place in France thanks to the Brexit effect.
According to them, the presidential election is having little effect on the market and 2017 has started very well after 2016 saw a pickup. Properties defined as luxury saw 60% more transactions than the previous year, totalling 490 million euros.
The agency cites the election as significant only in so far as it delivers on real fiscal reform. Most important are reforms to the wealth tax and a shortening of the capital gains waiver period (currently 22 years). Only once these have been done, they say, will the luxury market reach pre-crisis levels.
image © Wikicommons
image © Source Base BIEN – Notaires de Paris-Ile-de-France