The Chambre des Notaires de Paris (Paris Chamber of Notaries) has released figures on real estate prices in Paris for the third quarter of 2017. Figures suggest that Paris’ housing market continues to thrive, making it the ideal city to invest in property.
2017 sees continued success of Paris property market
In 2007, property sales were extremely healthy. The first 9 months of 2017 saw a higher number of sales in the Ile-de-France region, where Paris is located, than in the entirety of any of the years 2012, 2013 or 2014. Yet current sales volumes far exceed the level of the prosperous period of 1999-2007.
In Paris alone, the level of transaction volume is stabilizing. Yet prices could increase by as much as 10% at the end of 2017. The Notaries have yet to release these figures. It is therefore clear that buyers continue to feel the pull of Paris real estate. Further encouraging this boom in real estate prices in Paris are the low interest rate levels for mortgages.
Real estate prices in Paris to reach record high
In Ile-de-France, the rapid increase in prices is now slowing down. Conversely, in Paris the increase continues. This is due to a high demand and a lack of offers. In one year, the average price of Paris apartments rose by 7.8% to 8,940 €/m2 by the third quarter of 2017.
By end January 2018, the notaries predict the price per square meter in Paris will likely reach around 9,200 €/m². This would constitute an increase of almost 10% in just one year. In slightly over two years, and compared to the low point of May 2015, prices would have risen by more than 1,300 €/m². This would mean an increase of 17%.
Prices on the rise
The Saint Thomas d’Aquin quarter of the 7th arrondissement (district), where our office is located, is one of the most expensive districts in Paris. The price per square meter is currently 14,650 €/m2. This is an increase of 8.6% in just one year.
However, exceptional properties in the area in exclusive buildings can easily sell for far more than the average price. For example, this turnkey one bedroom apartment currently for sale here is on the market at 24,545 €/m².
In the Champs-Élysées quarter of the prestigious 8th district, also known as the Golden Triangle, prices now stand at 13,060 €/m2. This is an increase of 2.8% in one year.
Regarding entire districts, only the less central 19th and 20th have prices lower than 8,000 €/m2, at 7,090 €/m2 and 7,610 €/m2 respectively. The 3rd, 11th and 18th districts have already seen an increase of more than 10% by the third quarter of 2017.
Given the levels achieved, the growth potential has naturally decreased.
Nonetheless, consistent demand, low mortgage rates, and confidence in the new administration all contribute to the success. So, we can conclude that the Parisian housing market will maintain its impressive position in the year to come.
If you would like to find out more about investing in Paris’ thriving real estate market, please contact us.
More news accompanies the third quarter 2017 figures. The notaries have created a new method to calculate Paris real estate prices. Keep checking our website for a detailed explanation of these changes in the coming weeks.
Photo credit: Juan Enrique Gilardi