Paris real estate sales during the 3rd quarter of 2013
Paris notaires (officials who handle property transactions) recently issued figures for real estate sales during the 3rd quarter of 2013.
Real estate prices in Paris overall have seen a fall of 2.1% during the past 12 months but, in the 3rd quarter, they were slightly up on the same quarter in 2012. The average price for an existing property (as opposed to new construction) in Paris was 8,260 €/m2 – a 0.5% increase over the 3rd quarter of 2012.
Prices vary greatly among the arrondissements (districts) and neighborhoods. According to the notaires’ figures, the highest median price was 13,250 €/m2 in the Invalides neighborhood (7th arrondissement). Overall, Paris prices have tripled in 10 years.
During the 3rd quarter, the number of property transactions in Paris was up 14% on the same period in 2012. Around 8% of sales were to foreign buyers. Notaires are cautious about whether the figures signify a rebound in the market, since transaction volumes lag behind those of the boom years. However, they cite a number of factors that could stimulate the market in 2014:
- Demand remains high, property is seen as a good investment and low interest rates make borrowing more attractive for buyers.
- The possible increase in stamp duty as of March 1st, 2014 could incite buyers to finalize their transaction before then (it is not yet clear if Paris will apply this increase, which is voluntary).
- Sellers may put their properties on the market to take advantage of the proposed exceptional abatement of 25% on capital gains applicable until 31st August 2014.
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