The latest notary reports are out, and indicate that Paris real estate volume is increasing.
This is a strong indicator that the property market is returning to strength following the challenges of the Covid-19 pandemic.
We take a detailed look at the results.
Results from the third quarter of 2021
Every three months, the Notaries of France publish details of the latest prices and trends in our real estate market.
The new reports are for the third quarter of 2021, from July to September.
This time last year, the Covid-19 pandemic was pushing the number of transactions down. It was something we reported in this blog at the time.
But 12 months on, we can see this trend is reversing, and transactions are back on track. In fact, in the past quarter 36,870 apartments are showing as sold in Paris, a figure up 39% compared to this same quarter in the previous year.
Examining the average figures over the past decade from 2011 to 2021, this is transaction growth of 17%.
Both are encouraging results for owners and investors.
Why is Paris real estate volume increasing?
Looking a little further at the real estate transactions in the third quarter of 2021, we can see the price of property in Paris now averages 10,790€/m².
This means the prices have stayed flat over the same quarter last year, showing a minimal increase of 0.8%. This continues the trend published in the notary reports from the third quarter of this year, that prices in Paris have stabilized, again something we reported in this blog.
Continued low interest rates for mortgages, combined with prices flattening slightly after such a long acceleration phase, mean that confidence to buy has increased.
According to the notaries, property prices around Paris now range from the most affordable 9,250€/m² in the 20th arrondissement (district) to a peak of 14,540€/m² in the 6th.
Standout properties in the 6th and 7th
The 6th arrondissement remains highly desirable, reflected in its position as the most expensive district in the capital.
In its historic Monnaie quarter, property is so sought after that there are not enough transactions on the books to generate an average this quarter. These owners are staying put!
Currently listed with 56Paris in la Monnaie is this one-bedroom Saint-Germain-des-Prés duplex. Occupying the 2nd and 3rd floors of a charming 17th-century building, it combines traditional French windows, high ceilings, exposed beams and hardwood flooring, with modern touches from a full renovation.
Close to many shops and restaurants, it’s a short walk from the Seine as well as the Odéon area.
Meanwhile, average prices in the St Thomas d'Aquin quarter of the 7th are at 15,740€/m².
For an example in this district, we have this Bac top-floor studio which, minus agency fees, corresponds to the average price.
A sunny property with southern exposure, it is near the Musée d’Orsay, the Louvre and the Bon Marché.
This Bac studio represents an ideal investment as a pied-à-terre, a source of rental income, or even a primary residence.
These are just two examples from our select portfolio at this time.
Predictions for property prices in 2022
The notaries also make predictions for the future, up to the fourth quarter of this year and into 2022.
By looking at the leading indicators on pre-contracts signed by buyers, they predict two things.
First, that overall transaction volume is likely to decrease in the fourth quarter.
Second, that despite this, property prices should continue to remain stable into January 2022, and that there may even be slight growth.
This prediction is rather extraordinary, given the context of the pandemic. Overall, a positive takeaway for those buying and investing here in the French capital
Your own Paris property investment
With the latest news about Paris real estate volume, now could be the perfect time to invest in real estate.
Don’t know where to start? We’re here to help.
Experts on all aspects of the Paris property market, make sure you contact the team at 56Paris for free, no-obligation advice.