House prices for the whole of France fell by 1.1% in the third quarter while they rose by 0.8% in Paris. As a result, Paris property prices have reached a new quarterly record in central Paris, going up to 8,440 euros per square metre on average, according to a study of the Chamber of Notaries Paris-Ile-de-France released on Thursday. The previous record reached in the third quarter of 2011 was 8,370 euros per square meter. In Ile-de-France (The greater Paris area), prices have stabilized over the last year (-0.2%). “Buyers and sellers are sticking to their guns and price adjustments that might have been expected have still not occurred” said notaries.
Ten out of twenty districts have seen prices decline over the past year. The strongest quarterly decline was recorded in the 5th (-4.1% year to 10,640 euros), while the 7th and 4th decreased by 1.4% and 1.3%. However, some districts have risen sharply, as the 13th (+4.1%), the 6th (+4%) and the 11th (+2.6%). The biggest increase goes to the 3rd district with a raise of 4.9% to 10,660 euros. Seven districts still show prices above 10,000 euros per square metre. The 6th remains the most expensive with prices above 13,000 euros. The only place where buyers can find affordable properties below 7000 euros per square metre is the popular 19th arrondissement. There, price of existing properties rose by 2.4% over the year to go up to 6,770 euros.
“Structural market factors are maintaining prices in Ile-de-France. Investing in Paris is seen as a safe haven because of a lack of stock” explain notaries. With extremely low rates French mortgages added to the positive effect of inflation, it becomes more and more profitable to invest in a property in Paris.