Good news – according to the latest notary reports, Paris property prices have stabilized.
Following the challenges of buying and selling real estate in the midst of a pandemic, it’s a reassuring outcome.
We examine the financial results in detail, and what this means for property owners, and prospective owners, at this time.
The second quarter of 2021
Recently published by the Paris Chamber of Notaries and covering the months of April, May, and June 2021, the reports show the volume of Paris property transactions, along with the latest selling prices.
For the second quarter of this year, prices stand at an average of 10,650€/m². This is at a level equivalent to the prices reported a year earlier, albeit with a drop of -0.2%.
This nominal decrease shows a flattening of the prices, evidence that Paris property prices have stabilized.
Taking into account the Covid-19 pandemic, the extended confinement, and travel restrictions, this is encouraging news for owners and investors.
Number of transactions
But what about transaction volume? With 33,000 Paris transactions in this three-month period, that too is recovering. In fact, this volume is only 1% less than the same period in 2020 and is actually 6% higher than the 10-year average for second quarters in the past decade.
Also, looking at July 2020 through June 2021 reveals a 1% increase in overall transactions. Again, this is stable.
We believe the current stabilization of the market is due to the long-held confidence in Paris real estate, sometimes referred to as a ‘pierre coffre-fort’ (‘a stone safe’).
This is a special factor noted in our historic city, which is extremely resilient.
Paris is a unique market
It is also worth looking at the bigger picture.
Since the year 2000, overall Paris property prices have quadrupled, an impressive return in the long term.
Compare this to the other cities of France and their growth is far more modest, as prices have increased by no more than two-and-a-half times.
The strength of Paris’s unique market is clear. No other city comes close.
A look at the districts of Paris
As expected, there remain huge price differences in the different arrondissements (districts) of Paris.
According to the latest reports, by June 2021 three districts show price increases of more than 1%, compared to June of the previous year. These are the 5th, 18th, and the 19th.
While they may show the strongest growth at this time, these are overall averages for districts.
Higher levels of growth are evident for specific quarters within districts.
For example, just one property from the current 56Paris portfolio is this one-bedroom rue du Bac area apartment, located in charming Saint-Thomas-d'Aquin.
This neighborhood in the 7th now averages 15,130€/m², up 3.5% from the first quarter of the year. And fully renovated properties command higher prices.
What’s next now Paris property prices have stabilized?
In the latest reports, the notaries also predict what may happen in the next quarter of 2021.
Based on pre-contracts, they forecast an average price of 10,770€/m² by October. This would be an increase of 1.1 % over four months.
If achieved, it will almost match the price record reached in November 2020 of 10,860€/m².
We will, of course, report on the next quarter in this blog upon publication of the next notary results.
Here to help with your property investment
Following the news that Paris property prices have stabilized, you may be thinking about your own property investment.
Our team of real estate experts is on hand to offer advice, whatever your needs. For advice or any queries, please contact the experts at 56Paris today.