Real Estate Purchasing Power Improves in Paris
Parisian homebuyers will be pleased to know their purchasing power is on the rise. The results of a study show that buyers are able to afford larger properties for the price in Paris and its inner suburbs, as well as in Lille, Lyon and Bordeaux. The size of property a Parisian household can acquire with €1,000 per month on a 20-year term has risen to 26.4 m2, a 4.6% increase from the beginning of the year.EffiCity studied the size of property (in square meters) that a household could acquire for a monthly repayment of €1,000 with a 20-year term. Their analysis accounts for fluctuations in both interest rates and housing prices.
Purchasing power also improved by 4.3% in Hauts-de-Seine and 4.6% in Val-de-Marne. Purchasing power is stronger in these areas, but has increased more slowly than in big cities outside of Ile-de-France. We see only a 2.9% increase in Lille, a 2.1% increase in Lyon and a 2.8% increase in Bordeaux.
Real estate prices in Paris are stable or even down slightly accompanied by lower lending rates. This, combined with improved purchasing power, means now is the right time to buy.