The Chambre des Notaires de Paris (Paris Chamber of Notaries) released its interim Paris property prices for the fourth quarter of 2017. While not yet the final figures for the quarter, they suggest the market is stronger than ever. The city is a prime location to invest in property.
Continued price increase
In November 2017, the median price of period properties in Paris reached 9,040 €/m2. This marked an increase of 1.7% in 3 months and 8.5% in one year. In the third quarter, the average price reached 8,940€. This was already the highest level to date. The latest Paris property prices have now exceeded that level.
As we reported, prices were expected to rise further to 9,200 €/m² by January 2018. This level is now thought to be reached in March. The notaries predict that prices will increase then to 9,260 €/m2. This would represent an annual increase of 9.5%.
The average price in the 8th district currently stands at 9,610 €/m2. This shows an increase of 4.4% in one year. However, prices vary considerably according to exact location and quality. Exceptional properties frequently sell for far more. This fully renovated luxury apartment on a high floor with balcony is on the market at 14,965 €/m2.
Transaction volume also on the rise
Nearly 10,200 apartments in Paris exchanged hands between September and November 2017. This represents an increase of 9% compared to the same period in 2016.
In the wider Parisian region of Ile-de-France, 46,130 period properties sold. This is an increase of 10% compared to 2016. Additionally, the notaries expect 2017 figures to finish with a 16% increase in the number of transactions annually.
The number of sales in the region is up by 31% compared to the last 10 years. This represents 10,800 extra transactions. Moreover, this is 19% higher than the average for the prosperous years of 1999-2007.
Paris accountable for more than 10% of transactions
Paris contributes to more than 10% of the total volume of sales in France in 2017. Out of a total of € 239 billion spent on French real estate, € 25.3 billion was in Paris. What’s more, Paris is the most active city in France with regards to real estate transactions.
Contributing factors for Paris property prices
Numerous factors contribute to Paris’ thriving real estate market. There is of course Paris’ everlasting charm. In addition, buyers are currently taking advantage of historically low mortgage rates. Moreover, Brexit helps cement Paris’ position as a prime investment city with great prospects.
Paris sits in the heart of Europe and offers two international airports. A vast railway network connects it to all major European cities. This makes it an ideal hub for travel and business. EY recently ranked its business district La Défense 4th best in the world.
Additionally, France currently benefits from a positive political situation. International approval of its young president, Emmanuel Macron, also contributes to Paris’ booming property market.
Paris a sound investment
We at 56Paris believe the interim Paris property prices are a testament to its perpetually healthy real estate market.
Typically a sound investment, buying in Paris nowadays often offers better returns than financial products.
To learn more about investing in Paris property, either as a rental investment or for yourself, please contact us.
Photo credit: Myrabella