Spring 2017: record property sales in Paris region

The months of March, April and May saw a record number of property sales in the Ile-de-France region. 

The Notaires of Paris have released their latest sliding quarter summary of the capital’s property market. While the period from March to May did not see as many sales within the peripherique as the first quarter of this year, sales in the region as a whole were the highest since 1996.

A total of 46,250 existing properties (both houses and apartments) were bought and sold in Ile-de-France during the period: 9,990 of these were in Paris proper. That latter figure is a slight increase (1.1%) on February-March-April, but 4.5% lower than the first quarter figure for this year when 10,440 properties were sold.

In comparison with previous years, the Ile-de-France figure is remarkable as it is the highest seen for twenty years. This is despite it occurring during the presidential election period which is often touted as having a negative effect on the market. It is also:

• 32% higher than last year’s figure
• 45% higher than the last decade’s
• 23% higher than the average of the ‘golden years’ of 1999-2007

Meanwhile, existing apartment prices in Paris reached €8,540 by May’s end (5.5% annual growth) and €5,490 in the whole Ile-de-France region (4.5% annual growth). Predictions are for annual growth in the capital to reach 7% by September.

Petite Couronne, the inner ring of the Paris suburbs, contributed 16,880 sales to the total figure, and Grand Couronne saw 19,380 in total. The number of transactions in the suburbs is growing faster than Paris both year-on-year and quarter to quarter. Supra-normal price growth is diverting many buyers to suburbs as they find themselves priced out of the capital’s market.

The Greater Paris project could also be having an effect. As once disconnected corners of Ile-de-France are being brought together by the mammoth infrastructure investment campaign, demand for property there is growing, and with it, prices.

image © Wikicommons