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Which areas are benefitting from the Grand Paris metro expansion?
A study of the impact of le Grand Paris on about 20 Parisian suburbs, published by real estate network Guy Hoquet, reveals some notable disparities.
Cities benefitting from the Grand Paris metro expansion
Prices are climbing first and foremost in those cities that are closest to Paris. “Cities in direct proximity to Paris are perfect referral markets for households that want to buy a property big enough for their families, but with a budget that would limit their options in the capital. We can thus expect to see prices in these cities increase in the future,” analyzes Fabrice Abraham, General Manager of Guy Hoquet
Such cities include Issy-les-Moulineaux (+19% in one year, €8,621/m² on average), Saint-Ouen (+18% in one year, €5,321/m² on average), Les Lilas (+12% between the first quarter of 2017 and the first quarter of 2018, €5,718/m² on average) and Saint Denis (+7% in one year, €3,410/m² on average). Issy-les-Moulineaux and Saint-Ouen will be among the first to open their metro lines, in 2020/2021.
Some cities, once outliers, have made a triumphant entry into the fold, presenting themselves as attractive future markets. After having increased by 20% between the first quarter of 2017 and the first quarter of 2018, the average price per square meter in Clamart is now €5,949. In Drancy, prices are up 17%, with an average price per square meter of about €2,967. Prices in Nanterre are also up 17%, rounding out an average price per square meter of €4,671.
Prices in Anthis Mons, up 15% in one year, are now at an average of €2,874/m². In Aubervilliers, (+ 11%) the average price per square meter is €3,175. Saint Maur-des Fossés is up 8% in one year with average prices around €4,994/m² and Chatillon, up 7% between the first quarter of the 2017 and the first quarter of 2018, now boasts prices around €5,446/m².
Seine-Saint-Denis, for once, is also benefitting from Grand Paris metro expansion, which will open up certain cities like Saint-Ouen and Drancy.
Saint-Ouen, the new El Dorado
Prices in Saint-Ouen, the referral market of the 18th arrondissement, vary wildly depending on neighborhood and property size. Prices range anywhere from €3,900/m² to €6,000/m² with an average price of €4,900/m².
The most sought-after zones are those closest to public transportation, shopping, and the capital itself, as well as the flea market borough, which is becoming more and more populated.
In anticipation of the arrival of the Line 14 metro as well as the 2024 Olympics, some investors have decided to hold off selling their property, waiting for prices to go up.
Cities that aren’t benefitting
For some cities, however, Le Grand Paris expansion has thus far been a disappointment. Real estate prices are markedly decreasing, most notably in Chaville, Rueil Malmaison, Viry Chatillon, and, most surprisingly, Bagneux.
Although Bagneaux still suffers from a poor reputation, it’s the perfect city for investors, with an average price per square meter that’s still very affordable (€4,200/m²), and supply that should grow in the years to come with the arrival of new-builds to the market. These combined are enough to bring about some long-term changes in a city where public housing makes up 67% of dwellings.
Although Le Grand Paris Express is destined first and foremost to facilitate the transportation of millions of commuters, the project will also “bridge the historically unequal price gap between real estate prices in the east and in the west of Paris,” according to Abraham.
“Although it is certain that those cities closest to Paris, as well as those whose Grand Paris metro stations will open at the end of 2020, will be the first to benefit from project, it is still too early to predict the future of the other communes, those further away from the capital or seemingly less attractive at this time. What is certain, however, is that if Le Grand Paris keeps its promises, many cities are expected to grow like never before. To be continued…” concludes Abraham.