Paris-Centre: Taking a Price Hit…for Now, But Not for Long!
Volume XVIII, Issue 45
According to the site, Meilleurs Agents, real estate prices in the heart of the capital city have dropped.
The site calculates the prices on the basis of two complementary sources of information: historical transactions recorded by the database BIEN des Notaires de Paris/Ile-de-France and the latest transactions reported by the real estate agencies which are partners of Meilleurs Agents. Updated every month to reflect the reality of the market, their price estimates are expressed in net to the seller, excluding agency and notary fees. Keep in mind, too, that when furnishings are sold with the property, such as appliances and cabinetry, the value of those furnishings further reduce the price on the deed. The limits of the range are calculated to include 90 percent of the market prices, excluding the five percent of the lowest prices as well as the five percent of the highest prices in the “France” zone.
Prices calculated outside of the Ile de France by Meilleurs Agents are on the basis of transaction data communicated by their partner agencies, real estate ads and eco-socio-demographic data. In order to obtain market prices comparable in quality to those communicated in Ile-de-France, the scientific team of MeilleursAgents.com develops sophisticated means of analysis and information processing.
For the past five years, real estate has recorded record increases in Paris, but for the last few months, with the Covid-19 crisis in full force, the capital is no longer as popular with apartment buyers. Central Paris has suffered the largest declines in house prices in the capital. While the 1st, 3rd and 4th arrondissements are shunned by buyers, only the 2nd arrondissement is on the rise, saved by its “bobo” clientele. (Bobo: a person having both the values of the counterculture of the 1960s and the materialism of the 1980s; a bourgeois Bohemian.)
Since last March, but especially for the last three months, the real estate market in Paris continues its downward trend, Paris-Centre being the first affected area. When the 1st arrondissement, slightly saved by its historical position, recorded a drop of 0.9 percent, the 3rd arrondissement—a district known for its “pieds-à-terre”—suffered a decrease of 1.3 percent. As for the 4th arrondissement, the most expensive of the four districts comprising Paris-Centre, it has seen the price of its apartments fall by 1.8 percent—it is the one that has fallen the most in three months. Only the 2nd arrondissement can be proud of recording an increase of 0.8 percent compared to the months preceding the onset of the crisis. The amenities and benefits of residing in the districts of Porte Saint-Martin, Montorgueil, Réaumur Sébastopol and their bobo clientele have something to do with it.
The upscale districts of Paris-Centre are not the only ones to record declines. According to the barometer of Meilleurs Agents, real estate has fallen on average throughout the capital by 0.5 percent over the past three months. A trend that is not ready to be reversed after the implementation of this new and latest confinement.
From our own perspective, what Meilleurs Agents does not consider, are the improvements the city is making to enhance the livability of these central four districts—the pedestrianization of them, a dream of Mayor Anne Hidalgo’s. For now, some streets are pedestrianized on Sundays only, but Madame Le Maire dreams of making the historic heart of the capital a paradise for pedestrians. If that were to really happen, you can bet that the value of the property in these four districts will increase dramatically…every pedestrianized zone has!
The mayors of the 3rd and 4th arrondissements had suggested that to pedestrianize the heart of Paris, autonomous shuttles be set up to link the four central arrondissements. There is strong support by the residents of the districts and proposals are currently being studied. As part of the project to merge the four districts of central Paris (“Paris-Centre”), the local urban planning workshop (an association made up of architects and town planners) carried out, along with students from the CNAM (National Conservatory of Arts and Crafts) a study to create a shuttle to connect the annexed town halls and the central town hall of the new district (the current town hall of the 3rd arrondissement) as well as the many museums located in the historic heart of the capital. These buses could eventually be autonomous shuttles.
Traffic is a major part of the problem with the initiative. A study showed that the closure of the river bank lanes had transferred traffic jams to the outlying districts and had not solved the pollution problems. The pedestrianization project of the heart of the capital seems by some disconnected from the general interests and will not solve the traffic problems.
Ariel Weil, the new mayor of Paris-Centre remarked, “I am a pragmatic mayor and like Pierre Aidenbaum—previous mayor of the 3rd districts—I am in favor of intelligent pedestrianization with a gradual calming of general traffic without penalizing local residents who will have to be able to continue using their car. This is the crux of the problem. We must fight, as a priority, against through traffic, and also against that of large delivery vehicles. The implementation of this measure must be carried out in stages and be accompanied by feedback and the necessary adjustments. We must also offer a new alternative of public transport.”
As a resident of the 3rd arrondissement, I am in favor of such a plan, not only for my own personal enjoyment of my district, but of course, the increased values of the property in the heart of the city. It would not concern me in the least to see the values dropping slightly in central Paris during the time of Coronavirus, as “this, too, shall pass.” It will be a temporary glitch in the long history of property in the center holding its value in the long run better than others.
The Adrian Leeds Group
P.S. We are offering an amazing property in the 1st arrondissement, steps from Le Louvre, well worth its weight in gold! Be sure to visit our new site page now.
P.P.S. Just like every year, French Property Insider takes a break on Thanksgiving Day…so you won’t get your Thursday issue, but you will still get 50 issues a year!