Prices stabilize and sales increase in Île-de-France, but not in Paris
In Île-de-France, prices have stabilized and transactions are accelerating early this year, say the notaires. Meanwhile, sales volumes in Paris have fallen while prices continue to increase very slightly.
According to the Paris and Île-de-France notaires’ latest report, the recovery of transactions that began in 2015 is accelerating this year. During the first quarter of 2016, the number of homes sold was 11% higher than during the same period last year. This was more marked for houses (+13%) than for apartments (+10%).
Moreover, prices have increased across France for the first time year on year since 2012. The price rise only amounts to 0.5%, yet this is the first annual increase in over 4 years. The increase is mainly carried by house prices, growing 1.1% in 2016’s first quarter compared to the same period last year.
In Île-de-France, prices have risen by 0.7% year on year, again boosted by houses, whose prices increased by 1.2%, while apartment prices fell by 0.4%.
The recovery is driven by the “exceptionally attractive” low level of interest rates, which is allowing more buyers to enter the market. However, it is mixed depending on the location. While the market is very dynamic in the capital’s inner and outer suburbs, it is not quite as vibrant in Paris proper. There, sales numbers have fallen by 7%.
According to the notaires, this is partly due to the entry into effect of higher transaction taxes in the capital since January 1, 2016. They believe this situation has “caused a peak in sales at the end of 2015, followed by a drying up of activity in January 2016.” This strong loss was slightly recovered by good transaction numbers in February and March.
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