Paris Right Bank property market increasingly sought after
On the right bank, the real estate recovery stretches from popular areas to the more chic and expensive districts, with only the 16th arrondissement still being slightly slighted by property buyers.
“There is a considerable price gap between the 18th, 19th and 20th arrondissements and super-central Paris: the 1st, 2nd, 3rd, 4th and 8th arrondissements”, says Yann Jehanno, the CEO of the Laforêt network. This price discrepancy reaches up to 30% between the popular districts in northeastern Paris, where the average sits at 7,000 euros per square meter, and areas where property sells for over 10,000€/m2.
In these contrasted parts of Paris’ right bank, the real estate market has recovered since the start of the year, and more particularly within the last 6 months. This recovery involves sales number a well as prices, which have started to grow in the whole north of Paris. They have risen by 1.6% over a year (between July 2015 and July 2016) with a 2.4% increase between January and July 2016 alone.
Price evolution varies considerably from one arrondissement to the next however. Prices grew in the 1st by 6.5% over a year (between July 2015 and July 2016), in the 3rd by 5%, 4th (3.1%), and 19th (2.8%). They rose slightly (by between 1.5% and 2.2%) in the 8th, 10th, 17th, 18th and 20th and stayed fairly stable in the 2nd, 9th, 11th and 12th. However, prices dropped considerably, by 5.3%, in the 16th, and most especially in the south of this particular arrondissement.
Indeed, the 16th suffers from a poor image, according to Yann Jehanno, with buyers no longer attracted to the buildings from the 60s and 70s with high co-ownership fees and poor energy ratings. Moreover, this arrondissement concentrates a great number of large apartments (130-140m2) which have difficulty finding buyers — the average buying surface in Paris in 2016 is between 50 and 55m2 according to the Laforêt network.
Meanwhile, demand has returned for luxury real estate on the right bank — while it never really deserted the more sought after left bank. Since the start of 2016, buyers are back and prospecting in large numbers in the right bank, where luxury property stocks have started falling after accumulating over the past 4 years. Selling time on family apartments costing between 1 and 2 million euros have fallen considerably, with prices growing between 3 and 5%, according to the luxury real estate network Daniel Féau.
Photo by Anissa Putois