Paris real estate: 2 in 3 buyers are company directors and executives
The significant increase of Parisian property prices over the past decade has led to a growing monopoly of wealthy real estate owners in the capital and its region, according to a study by the notaires.
Just 10 years ago, managers and company directors comprised less than half of all Parisian property buyers. Today, they represent nearly two-thirds of homeowners in the capital, according to the Chambre des Notaires de Paris et d’Île de France.
Between 2005 and 2015, Parisian real estate prices soared, despite suffering a slump as a result of the 2008-9 economic crisis. Nonetheless, average price per square meter in the capital jumped from 5,200€ end 2005 to nearly 8,100€ by the end of 2015.
The notaires’ report details that the number of property owners who are CEOs and high-end company executives swelled accordingly, growing from 48% in 2005 to 63% in 2015.
Consequently, modest and low-income households’ share in the property market has dropped. Intermediate households now represent 21% of buyers in the capital, against 29% 10 years ago, and employees and workers account for 7% of transactions, down from 13% in 2005.
The evolution of property ownership in the inner suburbs is essentially the same as in the capital, with the share of buyers who are employees and workers declining from 18% in 2005 to just 8% in 2015.
Disparities are notable between the different départements of the inner Parisian suburbs. Company executives comprise 53% of buyers in the Hauts-de-Seine, to the west of the capital, but just 30% of buyers in the Seine-Saint-Denis department, to the northeast of Paris.
In a similar but less pronounced pattern, the share of corporate executives and directors has slightly increased in the capital’s outer suburbs. There, employees and workers nonetheless retain a 29% share of property purchases.
Over the Île-de-France region as a whole, managers and executives account for 44% of buyers, against 28% for middle management and 17% for employees and workers.
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