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Paris property prices continue to resist, according to the latest figures
According to recent figures, real estate prices in Paris have continued to hold up and the number of transactions has increased during the 2nd quarter of 2014.
The representative body of the officials who handle property transactions, Notaires de Paris-Ile-de-France, issues a quarterly roundup of property prices. These figures show that prices remained stable in Paris over the quarter, with a median price of €8,120/m2. The annual price variation in Paris over the year from the end of June 2013 to the end of June 2014 was -1.1%.
As ever, the median price figure conceals considerable variation both within and among arrondissements (districts). The notaires’ figures show that in four central arrondissements – the 4th, 5th, 6th and 7th – average prices easily top €10,000/m2 and can go to more than double that figure for quality properties in sought-after locations. The 6th arrondissement continues to take the prize for the highest prices in the city.
The notaires also list the average prices in the most expensive neighborhoods in descending order: La Monnaie (6th arrondissement – €13,070/m2), Saint-Thomas d’Aquin (7th – €12,790/m2), Odéon (6th – €12,340/m2), Gros-Caillou (7th – €11,220/m2), and La Sorbonne (5th – €11,160/m2).
The number of sales transactions increased by 12% compared with the same period in 2013. Existing apartments made up the bulk of sales in Paris, as opposed to new construction. 7,670 apartments in period buildings were sold during the 2nd quarter of 2014, compared with 240 new apartments.
The notaires do not predict any significant change in the Paris property market in the fall. It is important to note, however, that their figures are several months behind the reality of the current market. They are 2nd quarter figures which are released at the end of the 3rd quarter, and reflect sales which in many cases took place two to three months previously, at the beginning of the 2nd quarter.
Our assessment remains optimistic about the prospects for the Paris real estate market, despite the negative reports that have appeared in recent press articles. At Paris Property Group we have seen a lot of movement in the market since the beginning of September, and we would not be surprised if there were an upturn in the 3rd quarter.