Following one of the most challenging years in living memory, this blog gives an update on Paris real estate prices in 2021.
Despite the prolonged Covid-19 pandemic, the property market here continues to show strong resilience.
We reveal the latest reports from the notaries, which is sure to be good news for those who own property in Paris.
Official reports from the first quarter of 2021
Four times a year, the Paris Chamber of Notaries publishes reports detailing the prices and volumes of real estate transactions. These cover the French capital and the entire Ile-de-France region.
The official figures allow us to gauge the health of the property market, how it has performed in the last three months, and also give clues to the future.
The reports for January to March 2021 are now available, and reveal that even taking into account the pandemic, prices have not gone down. In fact, they continue to rise, albeit modestly.
In the first quarter, we can see Paris real estate prices in 2021 have grown by 1.7%.
This means average prices now stand at 10,640€/m².
While this is modest growth and less than the higher amounts we would normally see, it is still a positive trend.
The most expensive arrondissement (district) remains the 6th, where property in the Odéon area averages an impressive 16,920€/m².
Paris property owners and investors are sure to be satisfied with these results.
Reasons for the increasing Paris real estate prices in 2021
The real estate growth of 1.7% is above expectations, as predicted in this blog back in March.
Last time the notaries suggested growth might stay under 1%, so this rise is impressive given the context.
So what it is about Paris that makes the property market so resilient? There are a few reasons.
First, is the enduring, romantic appeal of the French capital, its period buildings, and strict restrictions on new builds. Together, this ensures there is always a greater demand than supply. No other world capital quite has this.
Being confined for much of the past year has also seen owners appreciate their homes more. Home really has been a haven.
There is also the appeal of having a sound investment during these somewhat uncertain times. Owning and investing in bricks and mortar satisfies this appeal.
Finally, the Covid-19 pandemic has prevented many from spending as they normally would, so their savings have increased. This has increased the desire for home ownership.
These factors, coupled with continuing low-interest rates, and the superior performance of real estate compared to the stock market, all make the Paris property market buoyant.
Predictions for the next quarter
Based on preliminary contracts, the notaries expect Q2 prices to reach 10,670€/m², another modest increase.
Looking ahead to the next quarter, and availability on the market, we at 56Paris have the following properties on offer in our own neighborhood of St. Thomas d'Aquin in the 7th, where prices now average 14,960€/m².
This quiet, loft-like Solferino property sits on the ground floor of a grand Haussmannian building. The Seine, the Musée d’Orsay and the many shops of the rue du Bac and rue de Solferino are all nearby. Currently a studio, it can also configure as a one bedroom, and renovation work is likely to increase both its value and appeal.
While this extraordinary Bellechasse one-bedroom apartment lies in the most exclusive part of the 7th. Fully renovated and with an elevator, it sits on the first floor of a Haussmannian building. Embassies and former private mansions surround the elegant property.
Or this large and sunny Rue du Bac studio offers great potential in the very center of the district. Set on the top floor, it’s located in a beautiful private courtyard.
Help with your real estate investment
Following this update on Paris real estate prices in 2021, we are on hand to help with your own property investment.
For advice or any queries, please do contact the experts at 56Paris today.