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Paris real estate: transactions up 70% in 1st quarter 2017
The Paris property market in the first quarter of 2017 saw almost double the activity of the previous year, with price growth accelerating to reach 5.5% year over year through March.
The first quarter of 2017 saw a surge in market activity in Paris as buyers sought to take advantage of low rates in the belief they would rise sharply in the near future. No significant rise has yet taken place, with Macron’s election calming the markets and reducing the French state’s bond yield.
In the first three months of the year, 10,440 transactions took place in the capital, an astounding 70% more than in Q1 2016. That figure is also 46% higher than the average first quarter over the last 10 years, and 13% more than the average during France’s golden age of property, 1999-2007. There were 44,220 transactions in the whole Ile-de-France region, 38% more than last year.
Prices have also seen higher-than-expected growth. By April 1, the price per m2 in Paris reached €8,540, 5.5% higher than 12 months earlier. The Notaires predict that, come the next quarter report for April-May-June, they will be reporting a price/m2 of €8,800 and 7% yearly growth.
Some market observatories have noted that this figure has already been eclipsed, but their figures are based on purchase agreements signed a few months before sales officially go through with an acte de vente (when the Notaires add them to their stats).
The price movements per arrondissement can be seen in the map below, courtesy of the Paris Notaires.
This translates into the price/m2 map of the city viewable below. Four arrondissements now have average prices above €11,000/m2, double the number a year ago.
The most expensive neighborhoods in the city are now found in the 6th, 7th and 8th arrondissements. Some remain in the top 5 despite seeing falls recently.
|Neighborhood (Arrondissement)||Price/m2||Change (1 year)||Change (5 years)|
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