The property market in Paris
House prices in Paris are increasing with some high-end apartments fetching a record of € 50,000 per square meter.
Generally speaking, real estate prices on average, all arrondissements combined, have already surpassed the €10,000 per square metre bar and continue to rise, with an average increase of 5.7% from 2017 to 2018. The 4th and the 8th arrondissements have witnessed the largest price increases in recent years.
Brexit has recently favoured the attractiveness of Paris and caused two phenomena: a growing number of British people buying properties in Paris but also French citizens returning to live in France following the uncertainties caused by the exit of the United Kingdom from Europe. Buyers from the UK are particularly interested in the 8th, 16th and 4th arrondissements.
Paris’s healthy property market has been supported by very attractive mortgage rates for almost two years now. French banks are also more flexible when it comes to granting loans and setting their duration.
The existing real estate market has recently stabilised even though the demand for high-end property is still high in Paris, especially for Haussmann-style buildings. The new-build market, however, is experiencing a slight decline for the first time after three consecutive years of massive growth. This is due to the fact that it is becoming increasingly difficult to build new buildings in the capital as permits are harder to obtain.
In general, three-bedroom apartments of about 100 sqm for on sale for €1.5 million and below are the most sought-after in the capital. At the other end of the spectrum, apartments priced at €4m and above take longer to sell. The most popular neighbourhoods are generally located in the centre and in the west of the capital. The 1st, 4th and 6th districts often have the highest prices.
The Greater Paris Project (Gold, Greater Paris) is shaking up the market's codes with plans to modernize the metropolitan area and better connect it to the city. This is $ 26bn public transport project, expected to be completed by 2030, which is the largest project of its kind in Europe. By adding a further 200km of railway and 68 new stations, 'Greater Paris' is expected to increase metro ridership by almost 40% and make it significantly more affordable to reach the city by public transport.
Neighborhoods close to the new transport links will certainly see an increase in property value. Fortunately, there is still time to buy these things before you begin to soar.