Prices have soared in the capital, and have broken all records. However, this boom time could be over soon.
2010 was clearly marked as a year of price increases. And in 2011, Paris continued its mad rise with investors willing to pay huge sums for tiny studios. These runaway prices blew an already overheated market into a frenzy (+ 21% in a year). With demand outstripping supply, Paris is one of the most expensive capitals in the world. The average price per square meter has exceeded 8000 Euros.
1st, 2nd, 3rd, 4th arrondissement: Supreme luxury.
Living in the heart of Paris is now a luxury reserved to wealthy people. The first four districts rarely have French property up for sale and benefited from the euphoria with prices over 20% higher than before.
Popular with tourists attracted to its luxury boutiques, bistros and elegant apartments, the 1st arrondissement is world away from the crisis.
Recently, a Parisian fell in love with a 53 m2 apartment, located on the first floor of a building in the Rue des Lombards, for sale at 450 000 Euros. Even so, with the restructuring of the Forum des Halles planned for 2016 which will no doubt beautify the neighbourhood, the value may increase yet.
Former stronghold of clothes wholesalers, the 2nd arrondissement has also benefited from the euphoria. Driven by the attractive pedestrian district of Montorgueil, demand is rising.
Now the 3rd arrondissement is not only the Place des Vosges and its charming streets, but also encompasses the Rue Du Foin. The quartier Bretagne also broke records (20.6% in a year). It is an accelerated movement due to buyers competing in geographically small areas.
Praised by the Italians, the 4th arrondissement continued its prodigious ascent, with prices up 25% year on year. Among the most expensive neighbourhoods in the capital, alongside Saint-Germain-des-Prés and the Invalides, the historic Marais district, known for its unparalleled charm, beautiful character houses with exposed beams, continues to appeal beyond the reasonable.
5th, 6th: so few, so expensive.
The Left Bank spirit has gone mad. With fans willing to pay the price of gold for every square meter between the Pantheon and Saint-Germain-des-Prés, the 5th and 6th districts remain the most sought after and are expensive. Moreover, owners tend to be very attached to this area, so they aren’t in a hurry to sell, which maintains the shortage.
7th, 8th, 16th, 17th: Golden values.
This year, the beautiful areas of the west of Paris, safe values in an overheating market, were very sought after indeed. So much so that sales of Haussmann style apartments, with parquet floors, moldings and fireplaces, broke all records.
In the 7th arrondissement, foreigner buyers represent from 15 to 30% of all transactions. However, there are also a lot of French after a safe investment buy.
In the 8th arrondissement, prices have certainly continued to increase (+ 17%), but they remain within the limits of normality.
Safe thanks to its typical chic Haussmann apartments, the 16th had a nice surge in late 2010, with increases between 20 and 25%. However, we’re also seeing aprice stabilisation.
More lively and mixed than the 16th, the 17th has taken the advantage of the outbreak recorded in early 2011. However, prices appear to have peaked.
9th, 10th: Upper Class.
In the past, both these districts were haunts of young couples looking for their first purchase. Now these two central districts have become expensive areas, popular with more well-off buyers. Recorded in early 2011, this movement is reinforced by new even higher prices, from 16 to 26% depending on the borough.
11th, 12th: Heat stroke.
The Eastern neighbourhoods of Paris have known an exceptional year, with price increases of 15 to 30%. This increase is mainly due to investors who bought small properties at exorbitant prices.
13th, 14th, 15th: Be quiet!
In late 2010, the southern districts of Paris also benefited from the euphoria that gripped the Parisian market. In these residential districts, the prices shot up by 32%, sometimes catching up with prices in Paris’ central areas.
In the 14th, prices have soared by nearly 25%, and not only for popular studios but also for larger apartments which have taken on value, especially near Alesia. Howerver, “the market is calming down,” said Christine Fumagalli, director of the agency Didot Alesia Orpi, and “we’re seeing a return to the scale of values between the different neighbourhoods”. The euphoria seems to have been well and truly over since spring.
18th, 19th, 20th : ultimate safe havens.
The last fights against rising property prices are taking place here.These districts are experiencing unusual enthusiasm. They particularly attract families from central Paris looking for an affordable property or investors seeking profits.
The 18th district has seen its prices rise by 15 to 20%, especially for studios.
Finally, Parisians have discovered the 19th to be the cheapest district of the capital. Many came from the 11th and 12th to find more spacious apartments with greenery.