Period apartments in the French capital are selling like warm baguettes with second quarter Paris real estate sales up 13% over last year. The latest figures are out for the Ile-de-France region from the “Chambre des Notaires de Paris”- the Chamber of Notaries of Paris, the French officials who handle real estate transactions. They show that more than 40,000 properties were sold in the region in the second quarter of 2016, a 14% increase compared to the same three-month period in 2015. Apartment sales in Paris itself increased by 13% in the same quarter.
PARIS REAL ESTATE SALES PRICES RISE APACE
Prices are rising too. In Paris itself, properties sold for 2.6% more during the second quarter of 2016 than in Q2 of 2015.Property in the capital is sold and priced by the square meter. It has now reached an average of €8,100/m². A further 2% price rise is likely by October 2016. The notaries calculate this based on the number of avant-contrats (pre-contracts) signed. They think the median square meter price will reach €8,260/m² next month. This remains below the peak in the third quarter of 2012, when prices reached €8,440/m², but above the first quarter of 2015, when prices were at a low of €7,950/m². Of course, average square meter real estate prices in Paris vary considerably. It depends on the property, the arrondissement and the neighbourhood.
HIGH SPOT OF PARIS REAL ESTATE SALES HIT
A word to the wise: These average figures are net of agency fees and don’t give the complete picture. Buyers often pay far more than the average per meter figures for quality properties in Paris. The 7th, for example, is just behind the 6th with average prices at €11,650/m². But Paris has seen some record-busting sales this last quarter. One of these was a mansion in the 7th, near the École Militaire. It sold at close to €30,000/m². The median price in that neighbourhood is €10,360 p/m².
Will Paris real estate sales continue to rise? Consistent demand, strong investment value, combined with low interest rates, point to a yes right now.
By Kerstin Bachmann,
Managing Director 56Paris Real Estate
Kerstin is a fully licensed real estate broker. Originally from Munich, Germany, Paris has been her home for many years.