Sales volumes of Paris property rose during 2014 but prices dipped
During 2014, the number of sales of apartments in period buildings in Paris increased by 2% compared to 2013, but real estate prices decreased by 2.1%. These are the conclusions of the quarterly report for the 4th quarter of 2014 issued by the notaires, officials who handle property transactions in France.
The report notes that the average price of an apartment in Paris dipped below €8,000/m2 during the 4th quarter to €7,960/m2. As ever, this conceals wide variations both within and among arrondissements (districts).
Three arrondissements saw prices increase in 2014: the 5th by 1.3%, the 8th by 2.8% and the 9th by 1.3%. The seventeen other arrondissements experienced decreases in price, in some cases from very high levels, as in the 6th and 7th, which remain the first and second most expensive arrondissements in Paris.
The overall price decrease remains modest when compared to the increase in prices of 40.5% that occurred between June 2009 and June 2012 in Paris.
Odéon in the 6th arrondissement is the most expensive neighborhood, according to the notaires’ figures, with an average price per square meter of €13,790, followed by les Invalides in the 7th at €13,670, St. Thomas-d’Aquin in the 7th at €12,670, Monnaie in the 6th at €11,920 and Archives in the 3rd at €11,520.
However, it’s worth noting that these are average prices and it’s possible to pay more than €20,000/m2 for an upmarket apartment in a sought-after neighborhood.
The number of sales of apartments in period buildings in Paris increased from 28,060 in 2013 to 28,660 in 2014, a rise of 2.1%.
The notaires expect prices to fall slightly during the first half of 2015, although this contradicts other predictions, such as those made by the property price index Les Prix de l’Immobilier. The latter expects prices to stabilize or to increase. Even so, the notaires observe that any price decreases are not likely to be substantial.
Finally, the notaires identify a number of positive factors that favor the market in 2015. The number of viewings of properties for sale is on the increase. Mortgage interest rates remain at historically low levels, currently just over 2% for a fixed interest loan over 20 years for a buyer with an excellent profile. And the recent rise in the U.S. dollar against the euro is a positive influence for foreign buyers.