Paris real estate prices still climbing
With the release of the new official notarial figures, Paris real estate prices are still climbing.
This is fantastic news for property investors and builds on the promising results seen earlier this year.
We take a look at the latest reports and the current situation for Paris real estate.
Notary reports for Q2 of 2019
Four times each year, the Chamber of Notaries publish data of all property transactions made in the capital. The notaries are the official body the French real estate market looks to.
The latest notary figures reveal the sales and growth for the second quarter of 2019. This covers the period from April to June. And the results are encouraging.
They show property sales volume increased 3% in Paris, continuing the sustained growth of previous years.
The figures also reveal a new average price of 9,890€/m² across the capital. This is an annual increase of 6.3%. It’s a return investors will be more than happy with.
Putting this growth into context, you only have to look at the figures since the turn of the 21st century.
Buyers who purchased a Paris apartment at 2,840€/m² in the year 2000 would be enjoying growth of 248%. An overwhelming increase.
A look at the arrondissements (districts)
Property prices still vary greatly across the city.
Overall, they are now approaching 14,000€/m² in the 6th arrondissement (district) and exceed 12,000€/m² in five of the city’s 20 districts. In addition to the 6th, these include the central districts the 1st, 3rd, 4th and 7th.
In fact, there are now only three districts where prices are less than 9,000€/m² per sqm. These are the 13th, 19th and 20th.
Prices also vary within districts, with each of their 4 quarters noted individually. The Odeon quarter of the 6th district, for example, averages out at 17,040€/m².
Bear in mind that the notarial figues are net of agency fees, making list prices 5% higher on average. And expect turnkey properties in desirable locations to well exceed the statistical average. Two examples follow here, both in the 7th district.
Tucked away in the sought after micro-neighborhood of Saint-Simon is this charming one bedroom apartment.
Or take a look at this two-bed Rue Cler apartment, overlooking a permanent food market, perfect for gourmets.
Reasons for Paris real estate prices still climbing
So why are property prices in the capital continuing to soar? There are suggestions of a few reasons.
Firstly, low interest rates are a key factor. These have dipped even further, from 1.51% in March to 1.39% in June.
In addition, realtor data indicates 26% more buyers than sellers in Paris.
Another reason suggested includes the improved labor market, including a drop in unemployment rates. This provides increased confidence in the real estate market.
August contracts indicate excess of 10,000€/m²
While these notary figures cover the second quarter of 2019, provisional reports are already starting to look at the months of July and August.
Based on reservation contracts signed in August, further growth is already in evidence, crossing 10,000€/m². This is something of a landmark. An all-time high.
The figures even suggest growth close to 10,300€/m² by October. This would mean an increase of 7.8% in one year. While it’s only projected, it means results are already looking promising as we look ahead to Q3 of 2019.
The best time to invest
With Paris real estate prices still climbing, there’s never been a better time to invest.
If you’re looking for no-obligation advice or just a chat on any aspect of the property market in the capital, 56Paris is here to help.
Our friendly experts would be happy to hear from you, so please don’t hesitate to get in touch with the team today.