“Normally, the real estate year is done in the spring with many sales promises in April, May and June. However, in 2020, this period fell in full first confinement, so we expected a decline in activity at the regional level. In the end, the market held up well in the last quarter and we only lost 12% of activity compared to 2019, which was an exceptional year. Stone remains the preferred safe haven for Ile-de-France residents and the region retains serious attractive assets ”, summarizes Thierry Delesalle, notary in Paris and president of the real estate statistics commission of the chamber. This decrease was more pronounced in Paris, which shows a decline of 16%. The number of foreign buyers has also decreased, due to the health crisis, which represents 1.8% of sales against 2.5% to 3 in previous years.
Search pavilion in the greenery of the greater crown
“La Grande Couronne performed better, with a drop in activity limited to 9% for apartments and houses”, emphasizes the Chamber. “Concerning the pavilions, the decrease is not due to a lack of interest of the potential buyers, on the contrary, but the number of offers is reduced”, underlines the rest Guénaël Chalut-Natal, notary in Moret-sur-Loing.
The big crown even had a hit in the last quarter of 2020, with 13% more pavilions sold than in the last quarter of 2019. “These first results suggest that the first movements of transformations in the lifestyles and expectations of buyers are taking shape, even if we do not yet know whether they will continue. The market for homes in the inner suburbs, undoubtedly more tense, is however slightly down (-5% when comparing the 4th quarter of 2020 to the 4th quarter of 2019) ”, notes the Chamber.
A total of 159,140 transactions in old real estate were recorded in Ile-de-France in 2020, a volume which is still 4% higher than the average for the past 10 years. In detail, 109,480 transactions concerned apartments and 49,660 houses.
Name of sales in 2020 in Ile-de-France
Number of sales in the 4th quarter of 2020 in Ile-de-France
–Prices continued to increase in 2020
Another observation is that the slowdown in activity had no impact on prices. The Chambre des notaires thus notes an annual price increase of 6.4%. However, it anticipates a decline for the coming months, in light of the first data for 2021. “Despite the slowdown in transactions in Paris where volumes fluctuate between 30,000 and 40,000, prices have proved resilient with an increase of 5% over one year but a welcome brake is underway after five years of continuous increase “, details for Paris Thierry Delesalle.
The 18th arrondissement charges 10,000 euros per m2
If prices have increased almost everywhere in Paris, trends have emerged this year. Thus we note, for example, the stagnation of the seventh, overtaken by the fifth. Another symbolic threshold, that of 10,000 euros per m2 in the eighteenth district, symbol of the gentrification of this district. The 12th, 13th, 19th and 20th, on the other hand, remain below 10,000 m2.
The central arrondissements keep their high cost, at more than 12,000 euros per m2 in central Paris (ex arr. 1,2,3,4), 5th, 6th and 7th. The districts of western Paris cost between 10,000 and 12,000 euros per m2. The most expensive district remains the 6th, at 14,200 euros per m2. The most significant increases (between the end of 2019 and the end of 2020) are in the 5th (+ 8.5%), the 18th (+ 7.2%) and the 8th (+ 6.7%).
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–The price of houses is soaring in the suburbs
In the suburbs, the annual increase in apartment prices reached 7.5% in the inner suburbs and 5.2% in the outer suburbs in the last quarter of 2020. Regarding houses, the annual price increase further accelerated in the 4th quarter to reach 9% in small crowns and 6.2% in large crowns, “With increases that we had not seen for a long time”, notes the Chamber which adds that “The pressure of demand at the end of the year and the absence of the slowdown in prices usually linked to seasonality could explain this surge.”
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–Beyond the craze for houses in the outer suburbs, the trend to leave Paris to live in slightly larger or more affordable housing in the inner suburbs continues, as illustrated below by the price differential in the suburbs. m2.
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