Despite observing a 24% fall in the number of property transactions taking place over a year, the Chambre des Notaires believe that the first green shoots of recovery are beginning to appear and that there will not be a price crash.
A fall in price of between 9 and 12 % in 2009
According to the Chamber of Notaires, talk in the spring of the early shoots of recovery has prevented property prices from crashing, actually causing sales to pick up a little – although still falling short of those recorded during the same period last year. Across the Paris region as a whole, the number of transactions fell by 24 % over 12 months, much less when compared with the 42% fall experienced over the fourth quarter 2008 and the first quarter of 2009. Initial findings seem to indicate that the fall in July may be no more than 14%. With the Chambres des Notaires predicting a price drop of between 9 and 12 %, this would seem to indicate that the low point of 2009 was reached during the first half of the year and that things will continue to improve in the second half of the year.
Foreigner buyers responsible for 8% of property sales in Paris
According to the Chamber of Notaires, 8% of the property transactions in Paris during the first half of the year involved foreign buyers. This is consistent with trends in the market over the last five years, a 2.5% increase from the number of international sales taking place ten years ago. Paris remains a very desirable location, especially the quartier of Saint-Germain-des-Prés in the VI arrondissement where nearly 30% of sales are to foreign buyers. The spacial dimensions of the 17th century buildings in this area have enchanted buyers and pushed up prices with an apartment of 328 m² in Odéon recently fetching 9.456 million euros or 28 830 euros per metre squared. However even this area of Paris have been affected. The VI arrondissement, usually the most expensive area in Paris in which to buy property at around 9600 euros per metre, has nevertheless seen a 5.4% fall in prices over the year, slightly less than the average drop. The most desirable areas to foreign buyers are all at the very centre of the capital – the VI arrondissement (23.7 % of sales), the III arrondissement (18.8 %), the IV arrondissement (18.7 %) and the VII arrondissement (17.4 %).
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