Property prices in Paris are rising again
While prices appeared to be stable of late, the renewed activity of the French property market has boosted prices in Paris. According to experts, this increase could be substantial and reach an average of 8,240€/m2 by September.
Recent economic growth and historically low mortgage rates have resulted in strong demand from property buyers. Concurrently, real estate in Paris — already the most expensive in the country — is also experiencing a price increase.
Indeed, the property market in Paris has recovered, as is the case on a national level. The notaires’ latest figures reveal that sales of existing homes in Paris were up 12% between March and May 2016 compared to the same period last year.
Prices have quickly followed the rise in transactions: they grew 2.3% in a year to reach an average of 8,060 euros per square meter in May in the capital. Real estate professionals believe that prices could reach a high level by September, with the notaires projecting an average of 8.240€/m2 (a 2.8% rise year on year).
This figure is close to the highs of early 2012, when prices reached an average of 8,460€/m2. Meanwhile, real estate in the capital’s suburbs has not experienced Parisian property’s price growth, with apartment prices even falling by 0.7% over a year.
Paris is considered by experts as a distinctly separate market from the rest of France, with the capital often being at the forefront of the country’s recovery and benefitting from larger sales volumes despite higher prices than elsewhere in the country.
Thus, real estate investors see Paris property as a “solid and reassuring long-term investment,” notes Serge Bussat, from the Guy Hoquet agency in Paris. Even in rental investment terms “it is a tense and lively market, characterized by high demand and low supply, which ensures investors are always able to rent out their property.”
Photo credit: Wikipedia / Yann Caradec