Looking Up: Prices On the Rise, Apartments at the Top, Macron Taking the Market Upward

PRICES IN PARIS RISING!

Prices are still on the rise in Paris, according to the Chambre de Notaires in their May report. The number of sales continue to rise as do prices, especially in Paris, and expected to reach record levels by summer of this year. Paris is leading the market upward with the price per square meter of resale apartments now at an average of €8,430, an annual increase of 5.2%.

The trend is expected to continue upward and according to the leading indicators of the Paris notaries, the price per square meter in the capital could approach €8,700 per m² as of June 2017, €240 more than the previous record of 2012. The annual increase would then reach 7%!

CHAMBRES DE BONNES

The Notaries of Paris-Ile-de-France have just published a study on the Paris markets for “chambres de bonnes” or servants’ quarters or service rooms, normally located on the top floor of a classic building under the roof. Historically, more than three-quarters of the sales of service rooms in the Ile-de-France are sold in Paris (8 sales out of 10 since 2013). A large number are found in the 16th and 17th arrondissements.
 
Since the record of 4,400 sales in the Ile-de-France region in 1999, the market has been reduced notably due to the adoption in 2002 of the “SRU” law, which set the minimum size of rental of a decent accommodation at a surface size of 9 square meters.

In Paris, the price per m² of the service rooms between 1999 and 2016 is close to that of all other apartments. In 20 years, the price of the service rooms multiplied by 4.61 (compared to 3.73 for studios and 3.40 for all other apartments).
 
The 5th arrondissement remains the most expensive sector (with a unit price of 100,000€ per service room).

If you can purchase two or more and combine them, they can make the most outstanding properties…as long as the building has an elevator (!), because being at the top floors, these apartments offer the best views of the city!
 
MARKET UP, THANKS TO MACRON

New French President Emmanuel Macron is committed to reducing property taxes and simplifying rental contracts, so hopes are high that he will further impact the French property market in a positive way. Experts in the field say that the market will get a big boost as people are encouraged to invest, the self-employed will find it easier to get mortgages and international buyers will be heartened by his goals to retain a strong and unified Europe.

In the Provençal town of Saint-Remy, not far from where I was visiting just last week in the Luberon, they toasted his win, as potential buyers waited for the results before making their move to purchase.

(See the full article in The Times). And to see the properties we represent for sale in Provence, and particularly in Saint-Remy, visit our French Propertys for Sale website.

A bientôt,

Adrian Leeds
The Adrian Leeds Group

(in Provence)

Respond to Adrian:

[email protected]

P.S. Don’t waste time, while prices are rising! If you’re thinking of investing in France, now is the time! Contact us for more information on how to get started: email [email protected] or complete our online consultation form.