Paris Property Prices Holding and Looking Up…Again!

Just today, the Chambre de Notaires published the statistics for the second quarter/first semester of 2012 for Paris and the Ile de France. The statistics confirm a conversation I had just yesterday with our Notaire who reported that sales volumes were down, but he didn’t see a significant difference in price.

According to the quarter’s report, sales are down in the Ile-de-France a full 21% compared to second quarter 2011. The slow down is attributed to the “gloomy economic conditions” and the recent tax reforms.

In contrast to lower sales volumes, prices are stable or up — as Paris has shown a growth with an average price per square meter of 8,340€ at the end of June compared to 8,260€ at the end of March 2012 — a 1% increase between April and June. For the year, the increase was 2.5%, returning to their level during the autumn of 2011.

For the second quarter, seven districts exceeded 10,000€/m2, located in central Paris. The 6th arrondissement continues to be most expensive of the capital, exceeding 13,000€/m2 while the 19th and 20th are below 7,000€/m2.

For the last year, the two most expensive districts have increased the most, too (7.2% in the 6th; 6.7% in the 7th). In contrast, prices declined in the 4th district by -2.5% over one year.

Within the last three months (April-June), prices rose slightly in Paris (1%) with the 6th and 7th districts recording the highest increases (+4.9% and +3.6% respectively), while the 4th district saw its prices fall 3.4% compared to the previous quarter. Prices range in the capital from 5,900€/m2 in La Goutte d’Or in the 18th arrondissement to 15,530€/m2 in the Champs-Elysées in the 8th.

Based on the figures reported at the time of the signings of the Promesses de Ventes, approximately three months earlier than the signing of the final deeds, prices in Paris are projected to increase again to 8,570€ by the end of third quarter 2012.

To read the dossier de presse report in its entirety (in French), download the pdf document.

To read the conference de presse report in its entirety (in French), download the pdf document.

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: [email protected]

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