According to the latest official figures, the Paris real estate price trend remains flat.
But is it that black and white?
In this 56Paris update, we take a closer look into the different areas of our city, revealing a more detailed picture of the property market in 2024.
The latest from the Paris Chamber of Notaries
Four times a year, the Paris Chamber of Notaries publishes details of the real estate transactions for the previous three months.
Now, we can see the results from the first quarter of 2024. This gives us a snapshot of the current market in Paris – how many properties sold and also, for how much.
For January, February and March 2024, these reports show a current average price per square meter of 10,310 € for the city of Paris.
That’s a 2% decrease in average property prices compared to the previous quarter. This is a nominal drop, with prices considered flat.
The reports also show overall transactions for the same period – which are down 18% year on year.
However, this puts transaction volume back in line with pre-pandemic levels, averaging slightly higher than the first quarter over the past decade.
Reasons for the current Paris real estate price trend
The reports point to a few factors which are causing the current trend of flattening prices.
The major factor is rising interest rates. This prevents buyers from borrowing – reflected in the decrease in transaction volume.
But it's important to remember that overall sales figures are still close to the 10-year average for the first quarter of the year.
Also, for cash buyers, the current interest rates are not an issue.
However, at the time of writing, the European Central Bank (ECB) lowered its key rates by a quarter of a point.
This 0.25% drop is minimal, but is the first drop since September 2019.
Time will tell to what degree this will impact mortgages, freeing up more people to buy, thereby driving an increase in prices.
A closer look at the different districts
20 arrondissements (districts) make up the City of Paris.
And while the overall picture shows a Paris real estate price trend of flattening prices, that’s not happening in all the districts.
In fact, the more central and desirable areas are bucking the trend, albeit slightly.
For example, the 7th arrondissement is essentially flat, with prices rising 0.5% in the previous quarter to 13,250 €/m².
But within the 7th, there are pockets of bigger growth, like in St. Thomas d'Aquin, where you’ll find the 56Paris agency. Here, prices are up by 2.9% for the previous quarter, and now average 15,490 €/m². Exceptional apartments command higher prices, like this turnkey 1 bedroom with 1.5 baths in St. Thomas d'Aquin.
While the 6th district is down by 2.1% on average to 13,550 €/m², the sought after St. Germain des Prés quarter is actually up by 1% at 15,650 €/m².
Other areas show bigger differences within the same district.
This includes the 4th arrondissement which is up by 2.3% overall at 13,380 €/m². However, the Notre Dame quarter is down 12.2% at 15,780 €/m². While nearby Saint-Merri is up by an astonishing 19.7% to reach 13,850 €/m².
56Paris is listing this renovated 1 bedroom for sale in the Saint-Merri quarter, near the Pompidou Center.
Exceptional properties demand more
The real estate mantra ‘location, location, location’ remains true.
And even when most prices are staying flat, exceptional properties will always demand more.
Something else to remember is that prices in the notary reports are the net prices to the seller, without the agency fees that are included in listing prices.
56Paris offers a selection of properties like this, including apartments with breathtaking views of iconic Parisian landmarks.
Take a look at this stunning apartment with views of the Arc de Triomphe. The 2-3 bedroom, 2 bathroom corner property with terrace and balcony is in the prestigious northern 16th district, just steps away from the Champs Élysées and the Golden Triangle.
Another exceptional property in our portfolio is this 1 bed apartment with balcony. Set in the historical 18th and overlooking Montmartre Gardens, it has breathtaking views of the Sacré Coeur cathedral from every room!
Both properties would make an exceptional primary residence, pied-à-terre, or a rental investment.
Price predictions for the rest of the year
Finally, the notary reports also make some suggestions for the remainder of the year – looking at predictions for the second and third quarters of 2024. This information is based on advance contracts that have been signed.
So what do they say?
The reports suggest the downward trend could continue, with average prices dropping slightly to 10,090 €/m² by July 2024.
They also say that prices may dip below 10,000 €/m² during the third quarter of the year.
We’ll keep all our readers updated with the latest news in this blog.
The bottom line – flat not falling
While there has been a slight decrease in overall average prices, it’s important to view this within the context of a long-term growth trend.
Paris real estate continues to remain a valuable and desirable asset.
And those seeking exceptional real estate in prime locations can expect prices to hold – or even rise.
Here to find your perfect property
If you’re thinking about buying your own apartment, we’re here to help.
Get in touch with our team of English-speaking experts today. We have many years of experience helping foreign buyers find their perfect property in Paris.
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