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Ile-de-France real estate sales are falling (except in Paris) but prices are stable
While sales fell in the last quarter of 2021, volumes still remain high. On the price side, houses, which are still highly sought after, are seeing their prices soar…
The Greater Paris Chamber of Notaries has just published its economic report for the end of January 2022 (before the war in Ukraine). An observation: the activity is half-hearted. With 38,160 sales of old homes from November 2021 to January 2022, the market fell by 14% compared to the November 2020/January 2021 period which experienced a strong surge. However, sales volumes are still 5% above the ten-year average for this period, with similar trends for apartments (+5%) and houses (+4%). “This return of activity to levels close to the averages of the last ten years is not surprising, but will have to be carefully monitored in the difficult context that we are currently experiencing ”, specify the notaries of Greater Paris.
Sales are falling except in Paris
Business held up well in Paris, as in previous months. For notaries, the lull in prices largely explains this trend. At the same time, apartment sales fell by 19% in the inner suburbs and by 10% in the outer suburbs. For houses, notaries observe a drop of 18% in the inner suburbs and 21% in the outer suburbs.
Slight drop in prices in Paris
Notaries recorded an overall increase of 2.3%, but with significant differences depending on the market. Despite the fall in sales volumes, the increase in house prices remains strong (+6.5% in one year). Conversely, the price of apartments for a year has been stable (+0.3%). On the other hand, price erosion continues in the capital (-1.6% for an average square meter of 10,570€), but it is offset by increases in the inner suburbs (+1.3% in one year) and especially in the outer suburbs (+ 3.7%).
Going to last
According to the first preliminary contracts drawn up by notaries, the trends currently observed have every chance of continuing. In Paris, they expect a price of 10,440€/m2, down 1.6%. On the other hand, for apartments, prices seem to be continuing their momentum: + 1.8% in the inner suburbs and + 3.9% in the outer suburbs. For houses, price increases should remain around 7% in the inner and outer suburbs.