Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris
Update Summer 2022: Real estate in the Paris region
Buyers are returning to the capital and home sales are still at a high level. The latest figures from the Greater Paris Chamber of Notaries have just been released and the icing on the cake, the prices are no longer soaring.
Dynamic market and moderate price changes
“The number of sales of old homes in the first quarter of 2022 is equivalent to that of the excellent first quarter of 2021”, explains Thierry Delesalle, president of the Commission for real estate statistics and a notary in Paris. And to clarify: “contrary to what has been written here or there, there is no market collapse. Better, it even seems to find much healthier fundamentals. »
As for the regional market
With 39,860 sales recorded, volumes for the first three months of 2022 are stable compared to the same period in 2021 (+ 1%) and even higher by 12% compared to the average first quarter of the past ten years. In detail, in the first quarter of 2022, apartment sales consolidated in the Petite Couronne (+1%) and in the Grande Couronne (+2%). They also remain above the average of the past ten years (respectively + 7% and + 23%). On the other hand, the house market seems to be running out of steam after, it is true, a euphoria since the first confinement.
Paris: sales up and prices down
With nearly 9,000 transactions in the first quarter of 2022, the Parisian market is regaining color. It recorded an increase of 18% in twelve months. “The Parisian market is the most dynamic in Île-de-France. It is 13% higher than the average for the last ten years,” notes Thibault Gallot-Lavallée, notary in Neuilly-sur-Seine. But paradoxically, prices continue to erode quarter after quarter to reach 10,520 €/m² in the first quarter of 2022 (-1.2% in one year). Prices corroborated by those observed on PAP where the average Parisian square meter is 10,375 €.
The Petite Couronne is doing well too
On the other side of the Paris Peripherique, the apartment market is also dynamic. It increased by 1% compared to the first quarter of 2021. And it is in Seine-Saint-Denis that it grew the most with an acceleration of + 16%. The explanation is to be found on the price side. “With a square meter at 4,110€, it is the cheapest department in the Petite Couronne”, specifies master Thibault Gallot-Lavallée. On the other hand, home sales are down 8%, no doubt due to a lack of offers. On the price side, they increased by 2% in one year for apartments and by 4.9% for houses.
The Grande Couronne always attracts
Whether for apartments or houses, sales volumes remain high in the extended area surrounding Paris. We reached a record with 8,810 apartments sold. Despite a decline in all departments, home sales volumes are still very high. In one year, the prices of apartments there have increased by 4.8% and will fall, according to notaries, to 4% in July. On the other hand, demand for houses is still driving prices up (+6%). The teleworking effect is still being felt.
The only downside is the war in Ukraine and its consequences: accelerating inflation, rising interest rates and weak growth could ultimately weigh on household solvency. This anxiety-provoking and uncertain climate confirms all the interest of being an owner. Paris real estate is asserting itself more than ever as a safe haven and we anticipate a probable rise in ownership rates in the months to come as buyers lock into the still low interest rates.
Contact Paris Property Group to learn more about buying or selling property in Paris.