Sales volumes in Paris increased by 7% in the third quarter compared to the same period in 2013.
This is largely due to two things, firstly the drop in prices. For the first time since 2011, the average price per m2 in the capital will fall to €7,980 in January as the Parisian notaries. This represents a 5.4% decrease from the peak prices in 2012.
The second reason is the capital gains incentive as many vendors wanted to exploit the window for a 25% reduction on the capital gains tax for second homes. This window closed on August 31, 2014.
Some tempering is of course needed for the Paris price decline however. Slowly but surely, the price of Parisian apartments continues to decline, however the market continues to be compartmentalized.
For the first time since mid-2011, it will pass below the 8000 euros per m2 on average from January 2015, shows research from the notaries Paris Ile-de-France. Yet the Ile-de-France market is much different to that of the central 1-20 arrondissements where price drops have been more tempered.
However, this marked downward trend may not last anyway. “It may be only seasonal, prices fall during the summer when sales are less important. This is a continuation of a slow and sustained downward trend “, analyzes the Parisian notary Thierry Delesalle.
Lower prices could also slow in the last months of the year (fourth quarter) as sales volumes are traditionally higher.
Compared to pre-crisis years, the level of sales is consistent with the average since 2008, but remains significantly lower (-17%) to the “glitz” period (1999 to 2007).
In the third quarter prices (based on the final bill of sale) remained almost stable compared to the second quarter (-0.3% to 8.110 euros per m2). But they still fell 1.9% year on year (between the third quarters of 2013 and 2014).
Between August and October, prices fell in almost all districts of the capital and sometimes markedly (-9.3% in the second to 8,980 euros per m2); -7.6% In the seventh to 10,820 euros per m2; -5.2% To 7.500 euros per m2 in the twelfth; -4.2% In the sixth to 11,800 euros per m2; -4% To 9.380 euros per m2 in the eighth; and -3.2% to 10.230 euros per m2 in the fifth. In contrast, in the fourth (3.6% to 11.220 euros) “which seems to retain its popular with buyers’ and fourteenth (2% to 8.760 euros per m2), prices soared.