"Historic sales levels and continuing pressure on house
prices" is the headline of the latest press release from
the Notaires du Grand Paris. They go on to tell us that
the latest transaction numbers show a 24% year-on-year
increase. Probably of more significance is that they show
a 17% increase when compared with the average annual
numbers over the last ten years. There are three main
reasons why the market is currently so strong:
● Limited supply, Paris has strict building
regulations and has no less than five UNESCO
world heritage sites. New build opportunities are
rare.
● Interest rates are at a 50-year low, our partners at
Ice Finance can currently source a fixed mortgage
rate at 0.9%, with 70% loan to value.
● Huge investment in the local infrastructure. The
Grand Paris project (see page 6) is putting Paris
at the forefront of global capitals.
Of course, these figures use a broad brush to paint a
complex picture. There has been much press comment
about an "exodus" of Parisians from the city centre into
the surrounding suburbs. It is too early to say this with
conviction though. INSEE figures tell us that in the last
10 years, 62% of central Parisian home buyers stayed in
A strong market
While in the regions the rise in
prices is accentuating (+7%), in
Île-de-France it is slowing down:
Insee and the Notaires note
an increase of 3.1% over the
last twelve months, whereas it
previously was 4.8% and 6.3%.
EXECUTIVE SUMMARY "
Paris, whilst last year this figure dropped to 54%. Of those
moving out, it was the Hauts-de-Seine department (92)
which saw the biggest influx.
Sonya Sévérac runs the Leggett office in Paris, she is
optimistic about the future of the real estate market
in the capital:
"The real estate market, which had been impaired by the
Covid-19 crisis, has experienced a strong recovery since
October 2020. The prices of old properties in France have
continued to increase in the second quarter of 2021 (5,9%
in one year), with a particular increase in some regions,
according to the index established jointly by the Notaires
and INSEE (published on 9th September)".
16e
-0,4%
18e
+0,9%
17e
-0,1%
18e
-1,2%
19e
+3,8% 20e
-2,3%
12e
+0,4%
11e
-2,3%
Paris Centre
-2,5% 13e
-0,4%
14e
-1,5%
15e
-1,5%
7e
+1,9% 6e
+0,8%
10e
-0,3%
9e
+1,8% 5e
+0,5%
Annual price changes for apartments in Paris
by arrondissement in Q3 2021
Annual price changes by m2
prices increased
prices remained stagnant
(between -1% and +1%)
prices decreased