Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris
The average price per square meter of Paris real estate has officially surpassed €10,000
Never before seen in the capital, the average price per square meter has exceeded the symbolic threshold of €10,000. And prices will continue to rise.
The record was officially confirmed earlier this month by Paris notaries. “This is unprecedented and, if we take into account preliminary sales agreements, we reached €10,300 per square meter as early as December 2018,” says Michel Mouillart, Economics Professor at the University of Paris-Ouest, specializing in real estate.
Out of 20 arrondissements, details the website MeilleurAgents, 13 have crossed the symbolic €10,000 threshold, an average encompassing properties from the Golden Triangle of the 8th arrondissement (prices reaching €15,980/m2) to the working class La Chapelle (€7,618). With an average price of €10,115 as of September 1st, Paris remains far from New York (€13,500/m2) and London (€14,500), but growth does not seem close to stopping.
After an increase of 8.8% over one year and 61% over ten years, “there is still potential for growth,” confirms Pierre Duval, MeilleursAgents’s economist, who expects a 6% increase in the next twelve months. “I don’t see this engine slowing down,” he continues. Demand exceeds supply and buyers benefit from historically low mortgage rates. “They have fallen by 30% since 2011,” he recalls, “while prices have only risen by 17%. »
As a result, buying is becoming more affordable than renting after just six years, compared to seventeen years in 2011, according to MeilleursAgents. Another sign of life on the Parisian market is selling time: properties sell in forty-two days on average and in less than a week for the most sought-after ones. “Paris remains a market of limited supply,” insists Michel Mouillart. And while he notes a slight slowdown in growth, the economist also anticipates a jump from 5% to 6% by next spring.
This price inflation is felt beyond the périphérique. “Demand is wavering,” observes Michel Mouillart. “Levallois and Boulogne-Billancourt in the Hauts-de-Seine have exceeded €8,000/m2.” Seine-Saint-Denis isn’t spared from this phenomenon either, much like in Bagnolet and Saint-Ouen, where prices jumped 9.9% and 8.1% in one year.