The latest notary reports are out and show what we were expecting – Paris real estate prices on the rise.
Not just that, but the number of properties sold has been reaching levels unseen for two decades.
We take a deeper look at the reports as the Paris property market bounces back in the post-pandemic world.
The second quarter of 2022
Four times a year, the Chamber of Notaries publishes detailed reports about the entire real estate market in France.
Their latest reports reveal the transactions and property prices for April to June of this year, and yield some very interesting results for the Paris market.
Since the previous quarter, the number of transactions for period properties in Paris rose by 9%.
But looking at the year from June 2021 to June 2022, 40,550 period properties sold. That’s a total increase of 18% year on year, a spectacular rebound.
Compared to the average number of transactions for second quarters over the past 10 years, we see a 29% increase for this year, a level not seen for 20 years.
For Paris owners and investors, it’s the news they’ve been waiting for.
The reasons Paris real estate prices are on the rise
With recent world events such as rising inflation and the conflict in Ukraine, the rising property prices may seem surprising.
So why is it happening?
Personal savings increased during the Covid pandemic and confinements, and buyers are wanting to purchase before interest rates rise.
Also, there is trust in ‘Paris stone’, and real estate is still seen as a safer and more lucrative investment compared to what’s currently available with banks and on the financial markets.
Foreign buyers are boosting the market
The return of foreign buyers is adding to the dynamism of the market, and partly explains why Paris real estate prices are on the rise.
In the first six months of 2022 in the 7th arrondissement (district), overseas buyers purchased 20% of the apartments. In 2020, the figure was just 13%.
This trend is identical in the 6th and 8th arrondissements, where foreign buyers have also increased by 18.4% and 16.3% respectively.
There hasn't been so much foreign demand since 2013, and this was before the dollar went to parity with the euro, something we recently reported on in this blog.
More price increases predicted
In the second quarter of 2022, overall prices in Paris grew by 0.7% to 10,590€/m².
Factored in with the nominal decreases of the previous two quarters, this shows a one-year decrease of -0.8%. This is stabilization of the prices year on year.
For the upcoming third quarter of the year, the notaries predict another slight increase of 0.6%, so the tide may have turned.
We will share the results in this blog when they appear in a few months’ time.
A closer look by district
Different districts still vary greatly. In both the 6th and 7th arrondissements, prices now exceed 14,000€/m² on average. The 6th district has increased 7.8% to 14,480€/m², and the 7th is up 5.4% at 14,060€/m².
Prices in Saint-Thomas-d’Aquin, home to the 56Paris office, are now the highest in Paris at 16,500€/m², a 5.6% increase.
In the 8th district, another area particularly popular with foreign buyers, prices rose by 4% to 12,030€/m².
More areas are continuing their gradual upward climb. Like the Saint-Victor neighborhood of the 5th arrondissement, where you’ll find this sunny two-bedroom apartment for sale. In this area prices are up 2.9% year on year.
Finally, the upper end of the market – properties over 3 million euros – is also flourishing. This means demand is high and inventory is low, so we are seeing the best properties are often sold as soon as they come on the market.
Your own real estate investment
With Paris real estate prices on the rise and the market dynamic, now could be the perfect time to invest or sell your apartment. And we are here to help.
The 56Paris team are experts on all aspects of the Parisian property market, so get in touch for free, no-obligation advice.