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During the third quarter of 2014 sales volumes increased and property prices declined slightly in Paris
According to figures recently issued by the Notaires de France (officials who handle property transactions), sales volumes increased and property prices fell slightly in Paris during the third quarter of 2014.
The notaires regularly issue a bulletin analyzing the real estate market in France.
In the Ile-de-France region, which includes Paris, property transactions were up by 7.5% between October 2013 and the end of September 2014 compared to the previous 12 month period. Throughout France, transaction volumes increased by 5.4% during that period.
During the third quarter of 2014, the notaires recorded 7,990 sales of apartments in Paris. This is an increase of 7% compared to the third quarter of 2013.
In Paris during the third quarter of 2014, property prices fell slightly by 0.3%, an overall drop of 1.9% for the 12 months October 2013-September 2014 compared to the previous year.
The notaires’ figures show the average price in Paris was €8,110/per m2 for the third quarter of 2014. As always, this conceals large variations both among and within arrondissements (districts).
The 6th and 7th arrondissements saw a decrease in prices from very high levels. But prices in the 4th arrondissement, for example, increased by 3.6% over the year, with an average price of €11,220/m2 in the third quarter. However, it is possible to pay considerably more than that for an upscale property in a sought-after location.
For 2015, the notaires do not anticipate large increases in prices. But they note that mortgage interest rates remain at historically low levels, real estate is still seen as a secure investment and demand traditionally exceeds supply in Paris.
Photo Credit – JLPC