Prices are soaring in these particular Parisian areas
While prices in Paris are already the highest in the country, the real estate market’s current recovery has led prices in the capital to rise, especially in certain areas.
After a few months of stability, property prices are on the increase again in Paris. Economic growth, low mortgage rates and renewed interest on the part of foreign and French buyers alike have fueled the country’s real estate market and led to a price hike in the capital.
Boosted by the rising purchasing power of creditworthy households, the recovery in sales volumes is also accompanied by a rise in prices, especially in large cities and in Paris in particular.
According to the Paris and Île-de-France notaires, prices in the capital have grown 2.3% in a year — reaching an average of 8,060 euros per square meter in May — and are expected to grow to 8,240€/m2 on average by September.
Over just the month of June, 2016, prices increased by 0.5% on average. The increase was mostly driven by large apartments (+0.6%) while smaller properties — studios and 2-bedroom apartments — also saw their rates increase (+ 0.4%).
The increase is most visible in certain central districts, not so in others. In the 7th arrondissement, prices per square meter rose by more than 5% in the first quarter of 2016 as compared to a year before, reaching 11,760€/m2.
In the 1st arrondissement prices grew by 8.6%, reaching 10,710€/m2. The area’s popularity was substantially boosted by the renovation of the Forum des Halles, which led prices in the revamped shopping center’s immediate vicinity to rise by 11.2%.
Meanwhile, prices grew by a mere 3.2% in the high-end 6th arrondissement and even declined in the 8th (-2.1%), a district containing some of the capital’s most expensive streets.
L’Express recently published a detailed list specifying average prices per area in Paris.
Photo credit: Wikipedia / Adrian Pingstone