Newsletter
April 2009
- Paris Market Update
News from the start of 2009: Q1 Figures - Designer Apartments in Paris
Celebrity Apartments for sale - Exchange Rate News
Foreign exchange and overseas property - Discover Paris
Focus on the 8th Arrondissement - Interview
An interview with Christine Grenat, Property Search Expert
Paris Market Update
News from the start of 2009: Q1 Figures
The 1st Quarter of 2009 has seen small drops in prices in Paris for the first time for 10 years. This was indeed one of the possible effects on the Paris Property Market as suggested by the Notaires of Paris. The latest figures for the 1st quarter do show a fall in prices over the last 3 months across Paris, however, looking at the percentage variation over the year to the 1st Quarter, this could be seen as a slight downturn, after a period in which price rises began to slow down. It is not a sudden ‘crash’ as was seen in the Spanish market. And in fact, in our January newsletter we suggested that prices might in fact fall slightly, but that it was not necessarily a sign of doom and gloom, and the same remains true now. After 10 years of very healthy and continuous rises in prices in Paris, this drop has not hit long-term investments.
| Arrondissement | Price per m2 | Price change over 3 months (From 1st Dec. 2008 to 1st March 2009) |
| Paris 1st | 7 931 € / m² | -6.7% |
| Paris 2nd | 6 593 € / m² | -3.3% |
| Paris 3rd | 7 057 € / m² | -4.1% |
| Paris 4th | 8 231 € / m² | -4.9% |
| Paris 5th | 8 297 € / m² | -2.4% |
| Paris 6th | 9 742 € / m² | -2.7% |
| Paris 7th | 8 987 € / m² | -3.6% |
| Paris 8th | 7 440 € / m² | -6.1% |
| Paris 9th | 6 250 € / m² | -6% |
| Paris 10th | 5 262 € / m² | -4.7% |
| Paris 11th | 5 756 € / m² | -5.4% |
| Paris 12th | 5 610 € / m² | -6.6% |
| Paris 13th | 5 767 € / m² | -5% |
| Paris 14th | 6 258 € / m² | -4.5% |
| Paris 15th | 6 423 € / m² | -6.1% |
| Paris 16th | 7 104 € / m² | -6.7% |
| Paris 17th | 6 446 € / m² | -6.3% |
| Paris 18th | 5 260 € / m² | -7.1% |
| Paris 19th | 4 640 € / m² | -6.7% |
| Paris 20th | 4 820 € / m² | -6.9% |
Source: MeilleursAgents.com
If anything, it makes it a more attractive time to buy; mortgage rates are still as low as they will ever be, and the robustness of the Paris market, due to its constraints and laws (heavy taxes are levied against those who are selling a property that is not a primary residence within 15 years of having bought it) stops demand and supply varying too much. For the whole year, prices could only fall by around 5%, on average, according to some sources. Hardly cause for too much concern when some prices have risen by 100% in the last 5 years.
| Arrondissement | Price per m2 | Change in Price over 1 Year |
| Paris 1st | 7 970 € / m² | -1.6% |
| Paris 2nd | 7 250 € / m² | +2.8% |
| Paris 3rd | 7 590 € / m² | +1.1% |
| Paris 4th | 8 860 € / m² | -1.2% |
| Paris 5th | 8 580 € / m² | +6.7% |
| Paris 6th | 10 040 € / m² | +4.2% |
| Paris 7th | 9 610 € / m² | +3.9% |
| Paris 8th | 7 990 € / m² | -1% |
| Paris 9th | 6 840 € / m² | +6.4% |
| Paris 10th | 5 890 € / m² | +5.9% |
| Paris 11th | 6 090 € / m² | +2.3% |
| Paris 12th | 6 120 € / m² | +2.5% |
| Paris 13th | 6 100 € / m² | +2.7% |
| Paris 14th | 6 740 € / m² | +5.1% |
| Paris 15th | 6 810 € / m² | +2.9% |
| Paris 16th | 7 540 € / m² | +1.1% |
| Paris 17th | 6 300 € / m² | +2.2% |
| Paris 18th | 5 670 € / m² | +3.1% |
| Paris 19th | 5 010 € / m² | -0.9% |
| Paris 20th | 5 340 € / m² | +0.1% |
Source : Notaires d'Ile-de-France
Looking in a bit more depth at the figures, prices on the whole have fallen by less in the central arrondissements, and in particular, in the most sought-after neighbourhoods where prices remain high. Taking the 6th as an example; always a popular arrondissement, especially with international buyers in Paris. Overall, prices have only fallen by 2.7%, and in Odéon, right next to the Jardin du Luxembourg, prices have fallen by less; just 1.9%. So, Flat Hunter’s advice to those considering buying Paris remains unchanged; we recommend that potential buyers consider a quality apartment in a central arrondissement or a robust micro-market; with a good location, lots of light, in a well-kept building, avoiding factors that reduce the value of an apartment, such as low ceilings, vis-à-vis, situated ground floor or a high floor with no elevator.
And with the G20 Summit bringing signs of hope for the global economy, it is possible that returning confidence may mean that prices will not drop that much further, and while borrowing and mortgages remain an attractive option (with fixed rate mortgages offering rates of less than 4.5%), it appears to be a good time to buy, and Paris remains a good long term investment; compare the news of the Parisian market to that coming out of London!
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