A Downturn in the Market is and Upturn for Investors

The Chambre de Notaires de Paris published just yesterday its report based on the end of November 2012 that sales are down and so are prices in the Ile de France.

Prices of existing homes in Ile-de-France were down 0.9% from August to November 2012 (-0.8% for apartments and for houses -1.1%). From September to November 2012, 30,000 existing homes were sold in Ile-de-France, a decrease of 11% compared to the same period in 2011. The market for homes and apartments appear to be in the same proportions, and all departments show a decline in the number of transactions compared to the same period last year.

The decline seems to be settling in the Ile-de-France, while all property in all geographic areas are not affected by the slight decline in prices. Pockets of resistance to the downturn still remain. The price per square meter of resale apartments remained stable in the Petite Couronne and has hardly changed in Grande Couronne (+0.4%) from August to November 2012.

However, a downward trend is emerging in Paris. The price per square meter decreased by 1.8% in the capital in three months, from €8,460 in August 2012 to €8,300 in November 2012. According to the latest projections calculated by the Notaries de Paris, based on pre-sale agreements in Paris, the prices of resale apartments will gradually decline below the €8,300 bar per square meter this spring.

In all departments, resale homes recorded a decline in prices over three months (-0.6% in the Hauts-de-Seine, Seine -2.1% in Saint-Denis). The unit price of resale house in the Ile-de-France fell to €307,500 in November 2012 (-1.1% compared to August 2012).

In conclusion, the year 2012 has become erratic in terms of price. Overall, price changes will be stable (or slightly downward) between  January 1 and  December 31, with a revaluation by mid-year.

Meanwhile, the Telegraph is reporting a different story. Laura Henderson, in yesterday’s article titled “French property: Paris ‘to lead upturn in prices’” claims that in spite of the tax hikes, “France remains one of the brighter economic stars of Europe (the third largest recipient of foreign direct investment in the eurozone in 2012), with the residential real estate sector proving a beacon of hope in a recuperating economy.”

Of course, the Telegraph focuses on the UK buyer, who she says, is “seizing the moment with a record number of transactions heading across the channel for property deposits and purchases” thanks to the strengthening sterling against the euro.

In a real-life offering, an apartment we have promoted in the past has just dropped its price — so now’s an opportunity worth taking advantage of! Two apartments have been combined — a studio with its own kitchen and bathroom and a one-bedroom with its own kitchen and bathroom, both united by one big beautiful 17 square-meter private terrace! And both apartments are in an amazing historically classified building next to Notre Dame on rue Chanoinesse!

Both come completely furnished. Both come with ongoing rental revenues. There is nothing to do, but walk in with your suitcases and enjoy your own apartment that makes a perfectly sound investment in Paris. You can use the entire apartment as one, or use one side and rent the other. Flexibility is perfect!

The asking price has been reduced to 775,000€ (67,000€ LESS than when it was advertised in December) + a 3% Finder’s Fee…and it’s including all furnishings! Both are big bargains considering this amazing location and the ability to move right in with no loss of revenue.

For more information, visit Apartments for Sale or email [email protected].

A bientôt,

Adrian Leeds

Editor, French Property Insider & Director of The Adrian Leeds Group, LLC

Email: [email protected] 

 P.S. If you’re considering the purchase of your dream Paris pied-à-terre or villa in the country, but are concerned about the complexities of obtaining a French property mortgage, I can tell you that getting a mortgage in France is actually easier than you may think. For more information visit French Property Loan or contact our Mortgage Manager at [email protected].

P.P.S. Tune in to House Hunters International for the newest episode “Every Little Girl’s Dream Comes True in Paris.” If someone out there can record it for me, I would greatly appreciate it! You can send it straight to [email protected]. Many thanks — and I hope you enjoy the show!