Real estate activity in April 2017 saw Paris prices break their record level. Prices for period properties climbed to 8,510€/m². The last time we saw Paris prices break their record level was in August 2012, when they climbed to 8,490€/m².

The news comes from the Chambre des Notaires de Paris (Paris Chamber of Notaries), the officials who handle and register real estate transactions. The statistics are not yet those for the 2nd quarter, they cover the interim period from February through April 2017.

This is a 5.5% increase compared to the same period in 2016. Transaction volume went up sharply as well, rising 33% during the same period.

Will Paris Prices Break Their Record Level Again this Summer?

The news confirms the trend we reported on for the first quarter of 2017, when prices reached 8,450€/m². We will keep you informed of the definitive second quarter figures once they are available.

Preliminary sales contracts, as opposed to deeds of sale, give the notaires visibility for market trends in the coming months. Based on these figures, they expect the price per m² in Paris to reach 8,900€ by August. This would mean annual growth of 7.7%.

If the notaires’ predictions are confirmed, prices will have increased over 1,000€/m² between May 2015 and August 2017.

What This Means for Buyers and Sellers

This sort of consistent price increase inspires sellers to put their properties on the market. Those who hesitated in recent years when prices stabilized are now looking to cash in on rising prices. Therefore buyers find a better selection of properties on the market to choose from.

Buyers are entering the market in greater numbers as well, looking to secure a property before prices rise further. The increase in transaction volume is an indicator that prices will continue to go up. US dollar buyers are paying particularly attention to the market, due to the favorable exchange rate. Historically low interest rates are an added incentive.

The combination of these factors make it an interesting time both to buy and to sell. If you’d like to discuss your project with us, please contact 56Paris for more information.