With the latest notary results published, we can now report on the official 2020 Paris real estate prices.
It’s an overview of the property sales achieved in the last quarter, as we look ahead to 2021.
Despite the Covid-19 pandemic, there is still a positive outlook for both owners and investors.
Results for the fourth quarter of 2020
The Chamber of Notaries is the official body handling property sales in France. Their reports on transactions and the current prices are eagerly awaited and published four times a year.
For the fourth and final quarter of 2020, we can see growth of 5.4% year on year for properties in the French capital compared to the same quarter of 2019, before the pandemic.
The final quarter of 2020 included the second confinement, which understandably reduced the number of transactions by 16%.
The reports indicate that average transaction prices stand at 10,770€/m². This is a minimal reduction of 20 euros per square meter (-0.2%) compared to the previous quarter.
In the same period, reservation contracts are pointing to a flattening of prices in the first quarter of 2021.
A potential flattening of prices lies ahead
As we emerge from the challenges of the pandemic, the notaries suggest growth could be under the 1% mark this year.
Predicted average prices of 10,600€/m² by April 2021 are expected to show a decrease of 0.4% in three months, or 0.8% compared to the previous April.
While this is far from the stellar growth seen in previous years, it is still a rise, which suggests a modest positive outcome for Paris property owners and investors.
As demand remains high and supply remains low, and while interest rates remain attractive, no significant drop in property prices is foreseen.
Of course, it has been a year of the unknown. But it seems that in a time where it is particularly hard to see what is on the horizon, the financial and emotional security associated with home ownership is proving especially appealing.
Overall 2020 Paris real estate prices
In their quarterly study, the notaries also reveal a breakdown of the prices district by district.
While currently in the 7th arrondissement (district) of Paris the overall average is reaching 13,500€/m², prices reach a peak of 15,200€/m² in its Saint Thomas d'Aquin quarter, home to 56Paris.
Prices for luxurious turnkey properties such as this stunning one-bedroom of course go well beyond the average price.
The most expensive arrondissement overall remains the 6th with an average of 14,240€/m² across the district.
In the very heart of Paris, in the 4th, prices are reaching 13,560€/m² on average. We currently have a truly unique property here, on the Ile Saint Louis overlooking the Seine, the only freestanding house on the island.
The most affordable districts of Paris
For the most affordable properties, there are now only four arrondissements remaining where average prices are below 10,000€/m².
These are the 12th at 9,930€/m² on average, the 13th at 9,630€/m², the 20th at 9,360€/m², and finally the 19th at 9,210€/m².
The 18th is also an excellent choice for investment opportunities, with prices reaching an average of 10,810€/m². Here, we currently have for sale a three-bedroom Montmartre duplex in the charming Lamarck-Caulaincourt area.
Another fantastic investment, in an up-and-coming area, is this two-bed two-bath turnkey property in the trendy 10th district.
Conclusions from the latest reports
To conclude, no one truly knows what effect the flattening prices will have. They could encourage buyers to purchase, or perhaps cause them to wait for prices to drop.
While it is uncertain what 2021 is set to bring in the post-Coronavirus market, we can take away one certainty. Up until now, the Paris housing market has remained incredibly resilient despite the pandemic, and from that, the outlook is positive.
Help with your property investment in Paris
Following this update on the 2020 Paris real estate prices, you may be thinking about your own property investment.
We are respecting safety measures at this time, and continue to successfully work with clients buying and selling real estate. For advice or any queries, please do contact the experts at 56Paris today.