Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris
Real estate in France: The Illusion of Price Stability
The real estate market is being sealed off at a time when Parisian property prices are stable, while demand is rising in certain provincial areas where supply is drying up.
The average price per square meter in France’s 10 biggest cities excluding Paris is at 2,759€, up 0.2% over one month, as of November 1st.
On the other hand, there is a slight decline in Paris real estate prices : falling from -0.5% in October to -0.6% in November. Almost no Parisian arrondissement is spared, from the most affected, in the heart of Paris, the 1st (-1.1%), to the most resistant, in the east, where the 19th is holding even.
Downward Trend in the capital
“After the post-confinement tidal wave, since the start of the school year, the Parisian real estate market has been more complicated,” attests Mickaël Abitbol, founder of Moriss Immobilier. “Visits have fallen by 30% and supply has grown considerably. We have 550 properties for sale compared to 150 to 200 in normal times.” Buyers are fewer and tend to postpone their purchases in the hopes of a price reduction. The market is rebalancing in their favour and, for the seller, the “correct” estimate of the selling price becomes even more crucial.
There are more small apartments being sold these days than large ones due to the lack of foreign buyers in Paris. This can offer great negotiating opportunities. For example, an agent proposes a 225 square meter apartment near the Place de Mexico in the 16th for 2.8 million euros. The buyer responds with a counter offer of $ 2.5 million which is accepted.
Sustained activity in the provinces
Throughout the country, there has been a noticeable pattern of buyers wanting something bigger, with some greenery and less urban. “Whether for primary or secondary residences or a mixture of the two, all the geographic markets that we cover such as Brittany, Normandy, Luberon or even the South-West have benefited from this purchasing fever”, enthuses Alexander Kraft, Managing Director of Sotheby’s International Realty France-Monaco. Even Parisians, who before would never have thought of leaving their arrondissement, have increasingly been buying properties in zones 78 and 92, motivated by the “revelation” that if they sell their apartment, they will be able to afford to buy a villa with a garden and swimming pool. While the shock of repeated lockdowns could shatter the momentum, the healing power of real estate should not be underestimated.
Source : https://www.lesechos.fr/patrimoine/immobilier/immobilier-lillusion-dune-stabilite-des-prix-1260987