Where Are The Property Bargains In Paris?
The Chambre de Notaires just reported the Paris and Ile-de-France property sales statistics for the period of 3rd quarter 2002 to 3rd quarter 2003. Property prices continue to climb steadily as they have since lows during the early 1990’s. Some arrondissements in Paris are starting to “level,” but growth is still only as low as +8% (the 4th arrondissement).
One of our readers purchased an apartment not long ago for 20 times more than the seller had paid for it 30 years earlier, showing an annual appreciation of about +11%! So, if you’re asking yourself if it’s still a good time to buy in Paris, even with the rate of exchange at about 1.25 dollars to euros, then consider the market trends and remember that interest rates on mortgages are at an all time low (well under 4%).
Prices in Paris rose on the average 12.4% with a per square meter price (euros/m²) of 3,850. The 6th arrondissement continues to be the most expensive in Paris, with 5,957 euros/m² (+8.1%), seconded by the 7th with 5,846 euros/m² (+10.5%), followed by the 5th with 5,100 euros/m² (+11.9%).
The least expensive arrondissement is the 19th with 2,755 euros/m² (+13.5%), seconded by the 18th with 2,927 euros/m² (+16.7%), followed by the 20th with 2,990 euros/m² (+16.5%).
Three arrondissements have reported less than 10% growth: the 4th arrondissement (+8%), the 6th (+8.1%) and the 16th (+9.9%). Note that the price of the 7th declined from the last period by -.7%.
When considering these prices based on the euros per square meter, assume that in reality, you will spend about 50% more than the averages for a variety of reasons (learn more about this in our weekly newsletter, French Property Insider: /frenchproperty/insider/index.cfm). For example, apartments in the 6th actually start at 9000 euros per square meter…so don’t expect to find a one-bedroom for less than 350,000. But in the 19th, 350,000 will buy you a three-bedroom and a one-bedroom will cost more like 150,000.
The bottom line? If I were buying a pied-à-terre in Paris (and I’m working on that myself as a rental unit and investment for my daughter’s future!), I’d be looking in the 2nd around rue Montorgueil (the oldest market street in Paris), in the 3rd where I already live and love and where there is still room for growth compared to the neighboring 4th (also Le Marais), the 10th on the Canal Saint Martin where prices are still really low and room for appreciation is enormous and in the 20th, where a private garden is still possible for very little money (remember Harriet Welty Rochefort’s gorgeous garden apartment near Gambetta?).
Today’s Picks are from three of these arrondissements (2nd, 10th and 20th), and one is a garden apartment!…so if your appetite is whet by any of these little delicacies, don’t hesitate to contact Jocelyn Carnegie to learn more about how you can invest in your daughter’s future, too.
(Source: Chambre des Notaires de Paris, January 2004)
A la prochaine…
Editor, Parler Paris
E-mail: [email protected]
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s Midi on Tuesday, February 10th, 3 p.m. to 5 p
.m. at La Pierre du Marais. See for details: /parlerparis/apresmidi.html See you there!
P.P.S. New photo of Adrian by Theodore D. Robinson…you can have your portrait done in Paris, too! /parlerparis/art/robinson.html
60m² — 3 ROOMS IN THE 2ND
In the Quartier Montorgueil, on a quiet pedestrian street, an apartment designed by an architect in an old building on the first floor with wood beams, parquet, fireplace, cellar. One large bedroom with shower, second smaller bedroom with bath. In perfect condition. Original and charming.
Asking Price: 335,000 Euros + 2% Finders Fee
Serious inquiries email: 5-2-04_Montorgueil
48m² — 2 ROOMS IN THE 10TH
Near Métro Louis-Blanc on rue du Faubourg Saint-Martin, two large rooms on the 5th floor with an elevator.
Asking Price: 210,000 Euros + 2% Finders Fee
Serious inquiries email: 5-2-04_Faubourg_Saint_Martin
80m² — 4 ROOMS IN THE 20TH
Near Métro Pyrénées in a newly built apartment with living room equipped kitchen, 3 bedrooms on a garden, bath plus shower, two parking spaces and cellar.
Asking Price: 312,000 Euros + 2% Finders Fee
Serious inquiries email: 5-2-04_Pyrenees