Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris
Paris Purchasing Power Up
According to the 1st quarter 2013 results of real estate barometer Capacim, purchasing power continues to rise for households throughout Ile de France. Over half (53.7%) of them are in the position to purchase a home in one of the principal communities in the department; one-third (33.4%) could purchase that home in Paris.
Overall purchasing power in Paris has increased by about 2% in the past year, due largely to a combination of lower prices per square meter and low interest rates. According to the 4th quarter 2012 results of the same study, purchasing power in Paris rose 3.5% last year. All good news for Paris real estate buyers.
The report defines “real estate purchasing power” as, “the proportion of households who have the ability to purchase property according to their needs, taking into account their family structures.”
The study is released quarterly by the University Paris-Dauphine in partnership with Crédit Foncier, one of France’s largest national mortgage banks. Its results draw from a large number of indicators and account for unemployment, household income, interest rates of credit and the price of real estate.
Of the 19 cities examined in the study, the four with the largest increases of purchasing power are in Fontainebleau (+8,4 %), Saint-Germain-en-Laye (+7 %), Nanterre (+6 %), and Saint-Mandé (+4,3 %).