While the differences are still significant between the districts and with the neighboring municipalities, the capital seems to be moving towards a symbolic drop in values, according to the preliminary contracts. What order and when?
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Price trends in Paris
Would the capital become less attractive? Is this the first effect of the health crisis with its economic and social impacts? Have Parisian prices, which have been particularly high for years, reached their peak? Will they start to back down slowly and sustainably? Or is it an epiphenomenon? To all these questions, if it is of course too early to draw any conclusions, the latest conjuncture note from Parisian notaries provides some indications.
Master Barbara Thomas-David, during the program Les Clés de immo
The Chambre des notaires du Grand Paris reports an unprecedented movement: “in the capital, according to the preliminary contracts, the average price would drop from € 10,850 per m2 in November 2020 to € 10,700 per m2 in March 2021, ie an anticipated drop of 1.4%. “Quite a symbol and unheard of for several years. Is it sustainable? “These developments seem destined to continue” underline the notaries. Due to this recent downtrend, the annual increase in the price of apartments would be limited to 2,3% in March 2021 in Paris, which corresponds to lowest level of the Ile-de-France region.
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Price trends in the arrondissements
Within the capital, all the boroughs are more than 10.000 € / m2 except three which are below: the 13th, 19th and 20th. The most expensive to own an apartment remains the 6th in 14 000 € / m2. The most expensive district is that of La Monnaie in the 6th district which culminates in 16.000 € / m2. In contrast, the “cheapest” is the Pont de Flandre district in the 19th arrondissement in 9.000 €/m2.
The evolution of the prices of the neighboring municipalities in Paris
If the price of the apartments is 10 000 € / m2 on average in Parisian districts, it is 7 000 € / m2 for all the municipalities located on the other side of the ring road. “This discount of 30% is the same as in 2019 and 2020 ”specify the notaries. There are, however, disparities. “If in Neuilly-sur-Seine (10 870 € / m2) prices are practically as high as in Ternes, an adjoining district (10 920 € / m2), on the other hand, in Aubervilliers and Saint-Denis, apartment prices (around 3 900 € / m2) are 57% lower than at Porte de la Chapelle (9 070 € / m2). »They note.
Opportunities by crossing the ring road
If, with the future Grand Paris Express project, certain gaps will be reduced, there are opportunities. The map below highlights some notable differences. ” Going from the neighboring districts of Paris to Clichy, Saint-Ouen, Aubervilliers or Saint-Denis makes it possible to reduce the acquisition cost by 40%, 43%, 55% and 57% respectively. This discount is also found in the south of the capital in the Val-de-Marne in Ivry-sur-Seine (-42%) or in the Kremlin-Bicêtre (-34%) and in the Hauts-de-Seine, from Montrouge to Issy-les-Moulineaux (-28%) via Vanves (-33%). “
While waiting to have more perspective on the effects of the health crisis, the Parisian real estate market is still marked by an imbalance between supply and demand. There is too little supply and a lot of demand. As a result, quality apartments, in a good location, offered at “fair market prices” always sell very quickly. What is less the case for the others. In Paris, the passion market seems to regain some sense.
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