Paris property prices continue to ascend
As we reported in this blog a few months ago, interim figures from the Chamber of Notaries suggested strong growth for the Paris real estate market in 2018.
Now, as the notaires publish the official figures for the first quarter of 2018, we can see the full extent of growth being enjoyed by investors.
An upward trend for Q1
Average property prices in Paris increased 7.3% over the same period last year. This means they now average 9,070 €/m².
The truth is, this does fall slightly short of the Chamber’s prediction of 9,260 €/m². Especially when looking back at the fourth quarter of 2017, where previous growth reached a higher 8.7%.
Overall, the number of transactions in Paris went down 10%. We suggest this is due to the lack of inventory, coupled with the higher prices currently demanded in the city.
A buoyant Paris real estate market
Even with these challenges, the figures are still promising. They strongly suggest it’s a fantastic time to invest in Paris’ buoyant real estate market.
Based on advance contracts, it’s predicted that prices will rise further in the short term. The Chamber sees them possibly rising to 9360 €/m² by July 2018.
This would mean a 6.2% annual increase. An impressive figure.
A look at the city’s districts
Paris is home to twenty arrondissements (districts). No two are the same, and of course, some offer better prospects for property investors.
Since 2014, four districts have registered an average price over 10,000 €/m². In 2016 these were the 1st, 4th, 6th and 7th arrondissements.
In today’s market, seven districts now exceed this top price, as the 2nd, 3rd and 5th arrondissements also average this top figure.
Showcasing the 7th arrondissement
The 7th now commands prices averaging 11,760 €/m². Although exceptional properties will often sell for more.
For example, this grand three-bedroom property currently for sale, priced at 14,383 €/m².
Of course prices vary considerably based on their location within each district. The Saint Thomas d’Aquin neighborhood of the 7th houses the most expensive, with an average price of 14,880 €/m².
For this area, here’s a turnkey one-bedroom pied-à-terre in the most desirable pocket of the 7th which is priced at 20,729€/m².
Up and coming
Of course, savvy investors will also be on the lookout for districts that will be better investments in the future.
With this in mind, it’s worth noting that less central but up and coming areas like the 9th and 18th arrondissements increased 17% and 13% respectively in this period.
Investment opportunities are plentiful, like this period property in the Montmartre area of the 18th.
Advice for your investments
We know the Paris property market can seem daunting. Which is why our experts at 56Paris are always on hand.
If you would like to find out more about buying or selling in Paris, don’t hesitate to contact the team for free, no obligation advice.
Photo: DXR