The French real estate market blog

We believe that our experience in the French real estate industry, our daily market reading, the feedback we get from buyers, vendors, tenants, holidaymakers, real estate agents, notaires, mortgage brokers and other stakeholders, combined with our approach towards the real estate industry can be useful to our visitors . Also, whether you want to take part  to this section or become a contributor, please contact us ( email to info@papaty.co.uk ). We will provide some valuable chosen information and will comment on it, your feedback is much appreciated. Prices stated as below are for the resale of apartments unless specified.

This information cannot be used as a consulting or legal advice, and no liability shall be seek for errors and omissions.

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Latest data for Paris

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Price per sqm and per arrondissement

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Being Risk averse in France saves the house

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Entry level to own a studio flat

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Credit-crunch

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Why investing in France, especially Paris

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Part of foreigners

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The currency

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use a flat hunter in Paris click here

September 2011

It's the moment to buy as the new CGT scheme pushes owners to sell now: ie. more properties on the market and a short time-frame for the owners to sell, get in touch. Your PAPATY finder!

Did you always want to know what area is covered by Montmartre, Le Marais, Triangle d'or, Montparnasse, etc. ? Well, that's now possible! We have set a Map on Google Maps where you can see the borders of each quarters, click here.

Get a mortgage in France with a fixed rate on 15 years below 4.3% (insurance inc.) and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of July 2011, the price in Paris is 8,197€/sqm,

that's 0% in the 8th district with 10,256€/m², and -1.3% in the 12th with 7,948 €/m² over 3 months span.

Chambre des Notaires de Paris:

Prices have gone up by +22.8% on a year span to June 2011,

Q2 - 2011 - €8,150 per m² the average price in Paris.

Number of sales have gone up by +2.0% to June 2011 on year span.

 

July 2011

Did you always want to know what area is covered by Montmartre, Le Marais, Triangle d'or, Montparnasse, etc. ? Well, that's now possible! We have set a Map on Google Maps where you can see the borders of each quarters, click here.

Get a mortgage in France with a fixed rate on 15 years below 4.3% (insurance inc.) and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of July 2011, the average price in Paris is 7,951 €/sqm,

that's +7.2% in the 1st district with 10,405 €/m², and -0.2% in the 7th with 12,077 €/m² over 3 months span.

Chambre des Notaires de Paris:

Prices have gone up by +22.7% on a year span to May 2011,

Q1 - 2011 - €7,780 per m² the average price in Paris.

Number of sales have gone down -2.2% to May 2011 on year span.

June 2011

Get a mortgage in France with a fixed rate on 15 years below 4.3% and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of June 2011, the price in Paris is 8,181€/sqm,

that's +3.9% in the 16th district with 9,807 €/m², and +3.4% in the 2nd with 9.060 €/m² over 3 months span.

Chambre des Notaires de Paris:

Prices have gone up by +21.1% on a year span to April 2011,

Q1 - 2011 - €7,780 per m² the average price in Paris.

Number of sales have gone down -1.1% to April 2011 on year span.

April 2011

Get a mortgage in France with a fixed rate on 15 years below 4.3% and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of April 2011, the price in Paris is 7,986€/sqm,

that's +8% in the 4th district with 11,542€/m², and +5.2% in the 17th with 8,827€/m² over 3 months span.

Chambre des Notaires de Paris:

Prices have gone up by +18.7% on a year span to February 2011,

Q4 - 2010 - €7,330 per m² the average price in Paris.

Number of sales have gone up by +1.1% to February 2011 on year span.

January 2011

Get a mortgage in France with a fixed rate on 15 years below 3.9% and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of January 2011, the price in Paris is 7,575€/sqm,

that's +3.2% in the 1st district, and +6.8% in the 15th over 3 months span.

Chambre des Notaires de Paris:

Prices have gone up by +15.6% on a year span to october 2010,

Q3 - 2010 - €7,030 per m² the average price in Paris, +5.1% on a 3 months span.

Number of sales have gone up by +10.7% to october 2010 on year span.

December 2010

Get a mortgage in France with a fixed rate on 15 years below 3.5% and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of December 2010, the price in Paris is 7,426 €/sqm, +1.6% over a month

that's +10.5% in the 6th district, and +5.7% in the 20th over 3 months span.

 

September 2010

Get a mortgage in France with a fixed rate on 15 years below 3.7% and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of September 2010, the price in Paris is 6,921€/sqm, +1.3% over a month

that's +8.57% in the 4th district, +5% in the 9th, and +6.5% in the 18th over 3 months span.

Chambre des Notaires de Paris:

Prices have gone up by +9.8% on a year span to june 2010,

Q2 - 2010 - €6,680 per m² the average price in Paris, +3.1% on a 3 months span.

Number of sales have gone up by +32% to june 2010 on year span.

May 2010

Get a mortgage in France with a fixed rate on 15 years below 3.6% and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of May 2010, the price in Paris is 6,730 €/sqm, +2.1% over a month

that's +7.7% in the 1st, +3.7% in the 10th, +3.9% in the 15th over 3 months span.

Chambre des Notaires de Paris:

Q1 2010 Prices have gone down by +3.2% on a year span.

March 2010

Get a mortgage in France with a fixed rate on 15 years below 4% and even lower with a variable rate caped +/-2% with a French bank even if you do not have a bank account in France and if you are not a French resident. Contact us

According to Meilleursagents.com as of 1st of February 2010, the price in Paris is 6,439 €/sqm, -0.4% over a month

that's +6% in the 3rd, +1.1% in the 8th, +5.3% in the 20th over 3 months span.

Chambre des Notaires de Paris:

Q4 2009 Prices have gone down by- 3.9% on a year span.

 

December 2009

According to Meilleursagents.com as of 1st of December 2009, the price in Paris is 6,439 €/sqm, +2.1% over a month

that's +7.2% in the 3rd, +1.4% in the 8th, +4.8% in the 20th over 3 months span.

Chambre des Notaires de Paris:

Q3 Prices have gone down by- 7.2% on a year span.

 

French Riviera information on prices, click here

October 2009

 

According to Meilleursagents.com as of 1st of July 2009, the price in Paris is 6,147 €/sqm, -1% over a month

 

August 2009 - Price per sqm and per arrondissement (resale market)

Chambre des Notaires de Paris:

May 2008 to May 2009 Prices have gone down by- 5.9% and the number of sales by -29%

Q1 -2009 change on a quarter span, €/sqm

Paris 1er (first district): +3,3%

8,340

Paris 11e:

-2%

5,980

Paris 2e:

+3%

7,430 Paris 12e: -1,5% 5,920
Paris 3e: +3,1% 7,840

Paris 13e:

-4%

5,840
Paris 4e: +3,2% 9,250 Paris 14e: -2,8% 6,540
Paris 5e: -8,1% 7,820 Paris 15e: -4,7% 6,470
Paris 6e: -0,1% 10,040 Paris 16e: -1,6% 7,400
Paris 7e: +2,9% 9,760 Paris 17e: -1,2% 6,190

Paris 8e:  -1%

7,970 Paris 18e: -1,8% 5,510
Paris 9e: -3,6% 6,570 Paris 19e: -3,6% 4,850
Paris 10e: -3,1% 5,700 Paris 20e: -5,8% 5,060

According to Meilleursagents.com as of 1st of July 2009, the price in Paris is 6,151 €/sqm, +0,1% over a month

 

 

October 2008 - last figures from the Paris notaires chamber - Being risk averse in France saves the house

The housing market continues to plunge in the UK, the Bulgarian property market which was one of the fastest growing markets among the emerging countries is now in steep decline (+25% a year ago), in Spain Real estate prices could fall as much as 50 percent over the next three years.

In a gloomy world economy where all the countries are affected by the current economic situation caused by the gone-crazy financial markets, the French banking system is doing quite well.

The French banks are very steady, and BNP Paribas has been named by Global Finance magazine as one of the World's Safest Banks. They hold quite lesser toxic assets than the US banks or UK banks. The mortgages have been granted in the past years according to a risk averse approach, as a result only 0.15% of the French borrowers fail to keep up repayments whereas it is 18% in the US . The French borrowers have also in a great majority fixed rate mortgages (during the full length of the mortgage) against variable rates in the Anglo-saxon countries.

Although in Paris and according to the data set out below, it shows that the prices are still growing, the question is also where your money is at the safest place? where your money is going to be less impacted in comparison to other investment products? how the real estate markets are going to perform in 1 year, 5 years, 10 years versus shares and the stock markets? How the currency is going to perform in the forthcoming years (important when you repay a mortgage from another currency or when you plan to invest in a country with a different currency). My sentiment is that investing in a French property that meets a real project (buy-to-let , relocation, second home) should still be an excellent investment and for a short, medium and long term, however you should seek advise in order not to be trapped! contact us, property investments in France available from Euro 100,000.

 

Updated on Oct. 30 - 2008.

The last figures known provided by the Organisation of Notaries in Paris (“La Chambre des Notaires de Paris) for the 2nd quarter 2008:

Resale market - According to recent statistics, the average price per square meter for old apartments*  in Paris is   

EUR 6,580 , +10.1%  increase on a yearly scale.

The average price per square meter is € 10,230 for the 6th  arrondissement, the most expensive area in capital, a +16.3% over 1 year.

The cheapest area for old apartments is  the 19th arrondissement, where the average price per square meter is EUR 5,150 and 9.9% increase over one year.

* means the construction is over 5 years old, no data available for houses as there very few on the market.

more information about property in Paris

 

September 2008 - last figures

Last figures available from the Chambre des Notaires de Paris (published on Aug. 25) for the apartment resale market (very few house sales in Paris to be considered as a data) for Paris:

What does that mean? According to us, the picture is as follow: the banks are less keen on providing mortgages than in the past, the borrowing rates have slightly increased very recently and the global economics are not an incentive to buy in the current time. On the other hand the Paris market is still affordable, there are still local buyers with good incomes who can get a mortgage, and the international buyers are still buying with a diversification in the origin of the buyers, especially for the upscale properties that count in the average, investing in a Paris property is still one of the safest investments in the mid-term (5-8 years) and long term (10 years and over).

September is the new season in Paris when the activity is starting again after August where almost no sales happen. We should be able to see better how is the market going to perform by the end of the month.

May 22 2008 - Entry level to own a studio flat in Paris

Example: Paris 20 e arrondissement metro Telegraphe, studio flat of 12 sq.mt at the 1st floor with kitchenette, shower, toilet, asking price Euro 90,000 as advertised May 17 - 2008 part

The rents per month that we observe on the market are from Euro 350 and more around Euro 400 per month for units of that kind.

Is there a demand for such small units? Yes, there are many applicants per offer, students, young professionals, and even foreigners who prefer their private pad to the expensive hotels. Is it decent to rent out such tiny spaces? The law says it is and the Parisian way of living can match this small living space, Paris is a city where you socialise easily, it is easy to find cafes steps away, easy to move from one quarter to another, the young Parisians live hang out a lot, and often travel to their families at week-ends.

Example: Paris 6e Mabillon ( St Germain des Près ) studio flat just refurbished, 15,10 sq.mt of habitable space, equipped kitchenette, bathroom with toilet asking price of Euro 199,000 € as advertised May 19 - 2008 part

The rents per month that we observe on the market are from Euro 500 and more around Euro 600 per month for units of that kind.

Example: Paris 3e studio flat at the top floor of a period building, kitchenette, shower room with toilet, storage, with views over the roofs asking price of Euro 130,500 as advertised May 21 - 2008 prose loger

The rents per month that we observe on the market are from Euro 500 and more around Euro 600 per month for units of that kind.


+9.7% over one Year

Source: Chambre des Notaires de Paris - last data known - May 2008

The prices of apartments resales in Paris ( exclusive of new built status ) have risen at 9.7% over one year to February 2008 whereas they have risen at 9.4% to February 2007

The credit-crunch and how France residential real estate market is doing

April 10 - 2008 - In the UK, the cover of the main newspapers almost every other day is related to the credit-crunch or to the weakening house prices ( some speak about disaster ahead in Timesonline.co.uk ). The Independent today's headline is

' The currency crunch ' pointing out that the Sterling is still weakening against the Euro. Whereas the main lenders tighten the lending conditions making it harder to get a mortgage in the UK.

In Spain, it seems a strong crisis is happening with so many boards ' se vende ' (for sale) displayed on buildings ( Le Figaro article ), and this is not encouraging to invest in property as moreover UK buyers take fright as thousands of illegally built homes are threatened with demolition ( read the article in the Guardian ).

In the USA, ' American dream hit by dollar’s decline ', FT.com headline is explicit adding to the fall in house prices make it very uncertain destination for a good investment.

Therefore, how is France residential real estate market doing in this international mayhem?

There is no sign of crisis settling down, more a slowdown, and although a small price fall in some areas, the sought-after areas coveted by the international buyers are doing very well.

In Paris it is still an approx. 10% rise on a year scale. two factors are showing that Paris can structurally better resist than London as regard to the uncertain issues arisen by the recent economic trends:

  1. Paris does not depend on the Finance people as much as in London, thus on the assumption of a credit-crunch impact on the City job market (Reuters) , this factor would have less impact on Paris.
  2. Paris cannot extend, there are almost no plots available, only a few redevelopments, so the number of dwellings does not increase whereas London and the greater London has no visible borders and has a lot of developments ongoing (look at the cranes everywhere).

Why investing in France, especially Paris is better than investing in the UK, in the USA or in Spain:

2007 factsheet for Paris - official data from Notaires - Paris Ile de France

In Paris, the resale market is composed mainly of apartments ( unlike london, where it is common to find whole houses ). The following figures are related to the apartment resales for year 2007:

36,807 - the number of aparment resales (figure very stable, has been a similar figure since 2001)

928 - the number of apartment sales in new-built

367 - the number of building sales

Part of foreigners who bought in 2007 in Paris per district ( arrondissements ) :

Paris 1er (first district): 16,6%

Paris 11e:

6,4%

Paris 2e: 9,3% Paris 12e: 4%
Paris 3e: 14,8% Paris 13e: 6,2%
Paris 4e: 16,5% Paris 14e: 5,6%
Paris 5e: 9,9% Paris 15e: 7,7%
Paris 6e: 15,4% Paris 16e: 8,8%
Paris 7e: 14,5% Paris 17e: 5,3%
Paris 8e: 11,8% Paris 18e: 7,2%
Paris 9e: 6,3% Paris 19e: 7,5%
Paris 10e: 6,1% Paris 20e: 4,6%

 

The currency

January 15 - 2008 - If you plan to finance your property in France using your British Pounds, American Dollars or any foreign currency, you should strongly consider securing a currency rate in advance as the buying process takes several months from the moment you launch the search to completion. This option is possible using a currency company.

An example of the fluctuation of a currency where the Pounds exchange rate has been affected:

"...November 14. He was tempting fate. Since then, the effective exchange rate has fallen by 6 per cent, and sterling’s decade of stability has come to an abrupt halt. ..."

read the article published by the Financial Times on January 14

the good news is that at today's date the Sterling has partially recovered

read the article .

Case study:

You plan to spend £200,000 on a French property. Assuming that at the start of your search £1 buys €1.5, you can afford a €300,000 property. If the British Pounds loses 6% as it happened recently, your £200,000 budget will allow you to buy only €283,018 property! You have lost Approx. €17,000 which corresponds more or less with the statutory fees on the property ('notaries/stamp duty' s costs') or even to an equivalent of your deposit ! Whereas having secured currency exchange rate at the first stage (you can fix the rate for up to 2 years in the future) you could have avoided the risk of negative currency fluctuations.

use a buying agent in Paris click here

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