With the new notary reports published, we know Paris real estate prices are remaining stable.
The reports look at the latest figures, which detail property prices and transactions for the final months of 2022.
It’s welcome news for Paris property owners and investors, as the market holds its own despite current economic challenges around the world.
The fourth quarter of 2022
Every three months, we get an insight into the real estate market of our city. This is thanks to the official findings of the Paris Chamber of Notaries.
The latest reports cover the fourth and final quarter of 2022, from October to December of last year.
Overall, they show a stabilization of Paris real estate prices for this period.
A record-breaking year for transactions
Looking at 2022 as a whole, the number of properties sold broke records.
In fact, it was the highest volume of transactions in 20 years – over 41,000 sales in total.
Average prices for property in the French capital now sit at 10,490 €/m².
That is nominally down just over 1% year on year – a flattening or stabilization of the prices. However, they continue to rise in many of the city’s central areas.
Predictions by the notaries are that the flat trend on average is likely to continue into the first few months of 2023.
Why are Paris real estate prices remaining stable?
Paris property continues to defy the pressures seen in other international markets. This includes the ongoing conflict in Ukraine, the current economic and political challenges of inflation, and slightly raised interest rates.
Despite these challenges, overall prices are holding. In the most desirable areas of Paris, property prices are actually rising. This includes the 6 th and 7 th arrondissements (districts).
For example, property prices in the Saint-Germain-des-Prés area have risen to 16,720 €/m². That’s growth of 3.2% from the third quarter of the year, and an impressive 9.8% for the year.
Also, in the historic Saint-Thomas-d'Aquin neighborhood – the location of our agency – prices are slightly down at 16,120 €/m² from the previous quarter of 2022. However, when looking at the year as a whole, prices are up 6.9%.
The most expensive quarter in the city is Champs-Elysées in the 8 th.
Sitting at 16,760 €/m² by the end of the year, that’s down for the quarter but up 3.8% compared to the previous year.
Select properties command higher prices
Of course, these prices are averages. Select properties command higher prices thanks to an exceptional location, period features, balconies, or a higher quality of renovation.
It is also worth noting that prices on the notary reports are the net prices to the seller, without the agency fees that are included in listing prices.
Here is an example, this turnkey two-bedroom property for sale, located in the 8 th district’s highly-prized Golden Triangle.
Set on the tree-lined avenue George V, between the Champs-Elysées and the Seine, it’s fully renovated in a luxurious modern aesthetic. The property offers custom-detailed marble baths and kitchen counters, custom cabinetry, high-end appliances, and chevron hardwood flooring.
And, this exceptional two-bedroom with balcony. It’s also in the Golden Triangle, on the Avenue Montaigne. This elegant avenue is the most highly prized in the 8 th district.
Recently renovated, a large foyer with powder room leads to a spacious living and dining area. Sliding doors give onto the large balcony, overlooking the avenue.
Properties outside the center
When looking outside the central districts of Paris, property prices drop.
For example, this property on the trendy Canal St Martin in the 10th district. Here, current prices average 10,180 €m².
But the rule of exceptional properties also applies, wherever you are in Paris. Such as this duplex apartment in the Hôpital Saint-Louis quarter.
It’s set in a green courtyard and offers wraparound balconies, a terrace, and airy loft-like ceilings.
Opportunities for international buyers
Demand for property in Paris, as always, remains strong. But the increase in interest rates, coupled with the usury rates, are making it more difficult for local buyers to obtain loans.
Will this create opportunities for international buyers? Only time will tell, but prices in Paris are not ready to drop significantly any time soon.
We will continue to update on Paris real estate prices in this blog, when the next quarter of results are out.
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If you have any questions about buying, selling, or renting in Paris, please don’t hesitate to get in touch with our team of real estate experts.
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