Paris real estate prices are on the rise in 2016, with a higher transaction volume noted as well.
The cost of buying a property in Paris may be as much as 6% more by the end of 2016 than it was in 2015.
Property in Paris is selling at its highest rate for 17 years. The Paris property market reached a new high over the summer. It’s now enjoying buoyancy not seen since the boom years of 1999-2007.
Paris real estate prices reach new high
New figures give a clear sign of the continuing upturn in the Paris property market.
They come from the Chambre des Notaires de Paris (Chamber of Notaries of Paris). They are the French officials who handle all real estate sales.
The notaires report that a bumper figure of 46,600 houses and apartments sold in the Île-de-France region from June to August. (The Île-de-France region is the région parisienne or Parisian region. It’s made up of eight administrative departments, including Paris itself.)
The volume of sales in the region is 9% higher than the same period last year.
These are what the notaires call their ‘interim figures.’ They’re released in advance of the final third quarter figures (July to September). They give a strong sign of the direction of property sales in Paris.
So how much does a Paris apartment cost in 2016?
Paris real estate prices have already increased by 3.3% this year over last year. This brought the average price per square meter for an apartment in the French capital to €8,270/m² in August. Based on figures of pending closings, the Chamber of Notaries says the price hike is set to continue. The average price per square meter is likely to reach €8,500/m² by December. That’s 6% higher than last year.
Are you looking to buy a Paris condo soon?
Across Paris, prices for properties vary according to the arrondissement (district) and each of its 4 neighborhoods. Within these neighborhoods, they vary even more so from one property to the other. This depends on the apartment’s features. The average price per square meter for an apartment is only a guide. Apartments often cost more in high-demand prestigious areas.
Here’s an example. In the 8th arrondissement this summer, in the Champs Elysées quarter, a superb six-room 326m² Haussmannian apartment sold in avenue Matignon for €7.35m. It was in perfect condition and came with a studio, cellar, parking and elevator. That was a price per square meter of €22,545/m².
In the same arrondissement, just a few blocks away, it was a different picture. In avenue Pierre-Ier-de-Serbie, a seven-room 202m² Haussmannian apartment sold for €2.67m. That was a price per square meter of €13,240/m². This period apartment was in need of renovation and had additional drawbacks. Common defects can be a view of an unispiring courtyard, a low floor level, lack of sunlight, noise or the absence of an elevator.
How Paris real estate prices differ
A further example is a sale in the 7th arrondissement. This was a luxury apartment in a 19th-century building just a block from the Seine on rue de Lille in the Assemblée Nationale quarter. This historic five-room 168m² condo was in exceptional condition and sold for €4.1m. That was a price per square meter of €24,400/m².
In the same arrondissement though, a short distance away, a Haussmannian apartment on boulevard St Germain, near the Assemblée Nationale, sold. This five-room 130m² condo was a total gut and was located on the 1st floor, facing the noisy boulevard. It sold for €1.35m, or a price per square meter of €10,385/m².
A new direction for Paris real estate prices
Are Paris property prices likely to continue their upward swing? Yes, say the French notaries. They say the upturn “will probably continue over coming months.” They also say this will reverse the slight drop in Paris property prices seen over the last few years.
But the French presidential elections will take place in April and May 2017. These traditionally slow down sales volume. It remains to be seen whether they will also impact the rate of the rise of Paris real estate prices.
We’ll keep you informed as it happens. Meanwhile, to learn more about investing in Paris real estate, you can contact us here.
Photo credit – Benh LIEU SONG