With the news that Paris real estate prices are flattening, we’re giving a full update to 56Paris blog readers.
Here’s the takeaway from the new findings for the second quarter of 2024.
The Paris Chamber of Notaries
Every quarter, we can see the full picture of real estate transactions taking place in our city.
This information comes from the Paris Chamber of Notaries. And their latest reports show what happened for the previous quarter of the year – in April, May and June 2024.
In short – prices are still very flat. This follows the trend we’ve seen for a while now.
But the notaries also make predictions for what’s likely to happen in the next quarter of 2024. And there’s some positive news for current owners, and those looking to buy a second home or rental investment property in Paris.
Modest decreases all round this quarter
So Paris real estate prices are ‘flattening’ – but what does that mean?
It shows that overall, prices have moved very little in recent months.
Figures from the second quarter of the year show that prices are stabilizing, with a slight decrease of just -0.4% – or less than half a percent.
This brings the average price per square meter in Paris to 9,450 €/m².
That’s down -6.7% compared to last year, or down -4.5% when looking at the previous five years.
Transaction volume – the number of properties sold – is also down by -9% this past quarter, and -19% when looking year on year.
But according to the same reports, these decreases could stop – soon.
Predictions for the next quarter
Looking ahead to the next three-month period, the notaries predict that average property prices in Paris will rise very modestly to 9,490€/m².
If this happens, it will reduce the annual decrease from -6.7% to -4.5%.
The notaries are able to predict this, by looking at the preliminary contracts already signed.
So it’s a good indicator of what lies ahead… and we will update you here in the next few months.
Not all Paris real estate prices are flattening
The top-line figures take an average of the whole property market in Paris.
But in reality, things are far more nuanced. Especially when looking at our city’s most desirable neighborhoods such as Saint-Thomas-d'Aquin and Champs-Elysées – central areas that continue to attract buyers and are retaining their value.
So while the 7th arrondissement (district) shows a slight overall decrease of -0.4% this quarter – that’s not true for all the neighborhoods.
Here, the prestigious Saint-Thomas-d’Aquin area (the location of the 56Paris office) is bucking the trend, with prices rising by an impressive 5.2% during the same period.
Year-on-year, prices in this district have increased by 2.2%, and risen 3.9% over the previous five years. This stability, combined with its charm, makes this part of the 7th one of the most desirable areas for both French and international buyers.
Now, the price per square meter in Saint-Thomas-d'Aquin stands at 16,300 €/m², placing it among the most expensive neighborhoods in Paris.
Current properties for sale in the 7th
We have a number of exceptional properties currently for sale in this desirable corner of Paris.
Take a look at this Musée d’Orsay one-bedroom apartment, nestled in the coveted antique dealers’ area of St. Thomas d’Aquin, on one of its most sought-after streets.
Tastefully renovated with a decorative fireplace, French windows, hardwood flooring and original moldings, it’s a move-in ready apartment in one of the best central locations on the Left Bank.
Also for sale, we have this one-bedroom apartment on Rue de Bourgogne in the Invalides quarter, another much sought-after neighborhood. Overlooking both the quiet street and a courtyard garden, this little gem is in excellent condition, with a spacious living and dining area and an open kitchen.
It offers classic Parisian living where classic charm meets modern convenience, ideal for those seeking a blend of historic architecture and contemporary comfort.
More price increases in the second quarter of 2024
Only one quarter demands more than St. Thomas d’Aquin in the 7th – the Champs-Elysées quarter in the 8th district.
It means this part of the 8th, where the Golden Triangle can be found, is the most expensive neighborhood in Paris.
Current prices here stand at 16,620 €/m², up 1.5% this quarter, reflecting the continued desirability of this world-renowned location.
While the 8th overall may have some slight fluctuations, the prestige of the Champs-Elysées quarter ensures consistent demand from buyers, both foreign and domestic.
In the heart of the Golden Triangle area, we have an exclusive off-market duplex property that is really quite special.
This apartment features a spacious layout with three/four bedrooms and three bathrooms, designed with a U-shaped floor plan that provides both privacy and quadruple exposure.
It’s a fully renovated, sunny, top-floor apartment with balconies located on the 5th and 6th floors of a remarkable period building with elevator, offering luxury and tranquility on a quiet residential street.
Further growth in the 6th and 4th arrondissements
The other central districts where prices are holding or even rising include the 6th arrondissement (district), up 2.7% in the last quarter. At an average price of 13 910€/m², the 6th remains the city’s priciest district overall.
One of the most expensive quarters here is La Monnaie, where prices have risen by 3.8% this quarter, and up 3.7% compared to the same time last year.
Finally, another highly desirable central area is Notre-Dame in the 4th. While prices are down slightly by -3.3% this quarter, it retains an impressive average of 15,260€/m².
Away from the central districts
While these central districts are holding prices above the 10,000k€/m² mark, there is one more, west of the center, that is also.
The 16th arrondissement is averaging 10,110 €/m², a slight rise of 1.1% this quarter. In the Chaillot quarter of the 16th district, its most desirable, prices average 11,290€/m.
It is here that we have this stunning Arc de Triomphe view apartment with a terrace and balconies for sale. With two/three bedrooms and two bathrooms, it lies just steps away from the Champs Élysées and the Golden Triangle.
Fully renovated with high-quality materials, the elegant air-conditioned property combines Parisian charm with modern comforts.
Mortgage rates to drop – a further boost?
There’s another factor at play.
The European Central Bank (ECB) recently lowered its benchmark rates by a quarter of a point.
It’s the second cut this year, and something we correctly predicted in our earlier blog about mortgage rates.
The drop brings the current rate to 3.5% – down from 3.75%.
Across Europe, banks use this figure to determine their own mortgage rates. So it should mean cheaper borrowing on its way for buyers, bringing more activity into the market.
Time will tell if the cut increases transaction volume and prices in Paris. But there are also suggestions even further rate drops from the ECB may come as early as 2025, which could boost the real estate market even further.
Here to help you buy Paris real estate
With the news that Paris real estate prices are still flattening, now is a great time to buy in Paris, especially if you’re looking for a future investment.
If you would like to speak to one of our local property experts, please do contact us.
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Photo: Valeriia Slobodeniuk