Property prices on the increase in Paris13th February 2014
Property prices in Paris are once again showing their signs of resilience. New figures from MeilleursAgents.com show that during January 2014 an increase of 0.3% in was seen in central Paris with smaller properties (studio & one bedroom apartments) showing a 0.5% increase. Property in the Hauts-de-Seine region saw an increase of 0.8%.
“When the volume of transactions dropped during the first quarter of 2013 the market in Paris stuttered a little,” explains Nicholas Leach, Partner at Athena Advisors. “However it’s no surprise to see that prices in Paris are starting to bounce back. If you look back to the financial downturn, compared to London and other European cities, property prices in Paris held their ground.”
“Prices in Paris have grown steadily over time, with none of the bubble-like symptoms other cities have seen,” continued Leach. “This is due in part to having a capped rental market but also a well controlled and monitored property mortgage system which has been designed to create long term stability. We may see prices dip a little during the slower months of 2014, but long term Paris remains a safe bet for international investors.”
The property market in Paris as a whole still remains compartmentalised due to the topography of the city but also due to the legacy of Hollande’s initial few months after his appointment.
Leach explains further: “Paris’ high proportion of older buildings means there are stringent building regulations which makes new-builds highly rare and always in high demand, regardless of any blips in house prices. Also, Hollande’s 75% tax rate on those earning over €1m has led to pockets of prime Paris home coming onto the market, which has reinvigorated investor’s appetite high end properties in the city. So whilst domestic appetite is muted, we’ll expect to see international demand increase further because, just like London, Paris is seen as a safe haven for foreign investors’ money.”