Despite the challenges of Covid-19, Paris prices are still rising in the real estate market.
This is according to the latest official figures published by the notaries. However, there are indicators that there may be a slight dip looming.
We take a closer look at the reports, and what they mean for those buying or selling property at this time.
The notary reports for the third quarter of 2020
Four times a year, the Chambre de Notaires de Paris (Paris Chamber of Notaries) publish the results of property sales in the capital.
The current reports detail transactions and prices for the third quarter of 2020, from July to September.
It is good news for investors. The reports show continued growth for Paris real estate, with overall prices up 1.1% this quarter.
This builds on the upward trend shown in the second quarter of the year, something we earlier reported in this blog.
The new average for property in Paris now stands at 10,790€/m². So although growth seems modest at just over 1%, it is still an increase of 6.9% year on year.
The best performing districts
Of all the 20 arrondissements (districts) in Paris, some are showing more growth than others.
Prices now range from 9,040€/m² in the 19th arrondissement, up to 14,590€/m² in the 6th.
In fact, all the arrondissements now exceed 9,000€/m². While the 6th and 7th districts remain the most expensive at 14,590€/m² and 14,100€/m² respectively.
These are statistical averages of net seller prices, and actual market prices are 5% more. In addition, premium properties command much higher prices.
For an example of a property in the sought after 7th, look at this luxurious Bellechasse one-bedroom apartment which lies in St. Thomas d’Aquin, the most exclusive part of the district. It is a turnkey property in an elegant Haussmannian building.
Or another turnkey investment opportunity, this time in the 16th, is this one-bedroom apartment. It offers a quiet location near Paris’ modern art museum in the Chaillot quarter. The 16th is among the top five districts for growth, increasing 8.1% year on year, according to the latest reports.
Covid-19 has pushed transactions down
The rising prices are certainly good news. But as you would expect, the overall number of property transactions is down.
The challenges of buying and selling during a pandemic are obvious, so it is no surprise that fewer properties are being sold overall.
Another factor is the current situation with mortgages. Due to the coronavirus pandemic, prospective buyers may find it more difficult to obtain a loan. Even if the rates are extremely low, still less than 2% at the time of this report.
Paris prices are still rising, but for how long?
The notaries’ reports also detail predictions for the future, including what may happen to prices in the fourth quarter, and into the new year.
These suggest that a slight drop in prices may be on the horizon.
The report states, “there may be a slight decrease in prices in December 2020 or January 2021.”
We will report on the next official figures in 2021, following publication by the notaries.
The 56Paris team are here to help
We know it is a unique situation at the moment, and if you are considering an investment in Paris real estate we are here to help.
If you are looking to buy or sell property in Paris, please contact the team at 56Paris to see how we can best assist you.