Pushing Up Paris Property Prices
The Paris property price reports for first quarter 2006 are hot off the press! The figures are reported quarterly by the INSEE, the French National Institute for Statistics and Economic Studies. It’s quite a brilliant source of information, especially if statistical information helps you make important decisions.
The property prices of Paris and the Ile-de-France, of course, are my fascination, both as a Paris property owner and consultant on the subject to would-be investors. I get goose-bumps each time I see the new charts appear on the Web site of the Chambre des Notaires de Paris in anticipation of how my own arrondissement is fairing against the others, how much my property has appreciated in the last year and of course, the trends of the rest of the city.
Once again, prices are up on the average more than 12% and in some districts as much as 20%. Paris continues to boom on a steady climb and has for the last eight years. My little “quartier” is again above average and I’m thanking my lucky stars for having landed here by sheer synchronicity.
The districts showing the least amount of growth are, interestingly, those North Americans love most — the 5th (Latin Quarter and Sorbonne), the 6th (Saint-Germain-des-Prés) and the 8th (Champs-Elysées). Coincidence? No!…the foreign market simply drove the prices up to a point where they had to level out for a while in those areas, but the 6th arrondissement continues to lead the pack with average costs per square meter well over 8,000 euros.
Everyone talks about the “bubble bursting,” but that could be true if a “bubble” existed in the first place. We are seeing a tiny shred of slow-down, but our first-hand experience is that the few good properties on the market are being priced correctly to sell, are being sold quickly at the asking price and that contributes to steady growth. Interest on mortgages has risen slightly, but money is still a lot “cheaper” and property taxes are ridiculously lower than in the U.S. or Canada, so ownership in Paris is still attractive.
Plus, not only is the rental market virtually year-round (except for August and January), but Paris isn’t in threat of the usual natural disasters (earthquakes, hurricanes, flooding, mudslides, etc.) and the hundreds of years these buildings have stood are likely to stand another several hundred years the way the city looks after them with such care.
Normally, I hold this good news for the readers of French Property Insider, and of course, in tomorrow’s issue I’ll be talking about Paris property prices at great length — in much more detail with all the charts and graphics that make it so fascinating. But I couldn’t help sharing our good fortune with all of you who I know have a special interest in Paris, not just as a great place to visit, but a place on earth we can have great affection for.
A la prochaine…
Editor, Parler Paris
Email [email protected]
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P.P.S. We’re going to have a booth at the second annual “Welcome to Fran
ce Fair” sponsored by Expatica.com on October 15, 2006 at the Carrousel de Louvre here in Paris. We’ll also be speaking on the subject of finding property sometime during the day, so be sure not to miss that (we’ll let you know at what time we’ll be on the podium) and if you’d like to get free tickets, sign up online before September 15th. For more information visit http://www.expatica.com/welcometofrance and to sign up for your free tickets, click here: