Paris: Prices Still High, Still Climbing! Buy now!

The real estate market in Paris and the Ile-de-France remained very active in the third quarter of 2018 and the volume of sales of resale housing was sustained compared to the same period in 2017. Interest rates are still very attractive and the desire to become owners continues to mobilize buyers in the Ile-de-France.

The indicators from the Parisian Notaires show a high level of activity in October 2018. Everything suggests that the volume of sales will remain high in 2018, almost equivalent to 2017. The annual rise in prices remains strong in the heart of the Paris metropolitan area with historically high prices that challenge the future.

In the capital city, the price per square meter of apartments increased by 6.2% in one year reaching 9,500€ per m² at the end of September 2018. One Parisian district out of two now boasts of a price per square meter of more than 10,000€. The 8th, 9th and 16th, which had remained a bit removed from the recovery of other districts, have just passed this point in the third quarter of 2018. Only the 19th arrondissement still knows a price of less than 8,000€ per m² (7,800€ per m²).

Rising prices are widespread in all arrondissements. The 19th and the 1st have price increases above 10% over one year and 14 districts have annual increases of more than 5%. The most expensive areas of Paris are Saint-Germain-des-Prés (16,250€ per m²) in the 6th, Saint-Thomas-d’Aquin in the 7th (15,660€ per m²) and Notre-Dame in the 4th (15,120€ per m²). The highest selling price in the third quarter for an apartment was 40,680€ per m² for a 59 m² apartment in the 16th.

The lowest priced neighborhoods are La Chapelle (18th) at 7,030€ per m², La Goutte-d’Or (18th) at 7,320€ per m² and Pont-de-Flandres (19th) at 7,400€ per m².

In January 2019, annual price increases should accelerate, even if Parisian prices change little in the coming months. Thus, according to the leading indicators of the Parisian Notaires on the preliminary contracts, the price per square meter should exceed 9,600€ in January 2019 in Paris and the annual price increase would approach 7%.

In Paris, nearly four years of increases

accumulated since mid-2015, when the price had risen to €7,880, would lead in January 2019 to an increase of €1,790 per m² or 23%!

The bottom line: buy now!For more information, visit the interactive map of prices. You can download the entire pdf report here. 

A bientôt,

Adrian Leeds
Adrian Leeds Group

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P.S. It looks like January 2019 is shaping up to be Adrian Leeds on House Hunters International month! Don’t miss re-airings of Living Large in Languedoc, A Last Hurrah in Paris and Picture Perfect in Paris. We’ll have all the details for you in the coming weeks!