The real estate market trends in Paris

2015 April

The trend since January 2015 has been confirmed today: the real estate market is currently in a recession.
The prices have dropped so much that the average price per square meter has reached a historic drop, passing below the threshold of € 8,000 per square meter! An ideal situation for buyers.

Did you know that prices are declining trend for 2015?

In 2014 the prices have dropped so much that we went for the first time below the threshold of € 8,000 / sq.m in January 2015 with an average of € 7,930 / sq.m. In 2015 the prices will fall further. Indeed, the price per square meter will continue to decrease in May to € 7,830 / sq.m. This trend will increase further in the second half.

Suitable situation for buyers

Currently, the real estate market is in recession. When previously it was more dynamic, there were more sellers than buyers. Now it's the opposite scenario. For lack of landmarks on the market price, the owners are disturbed and do not know properly fix the selling price. This therefore affects the price down. This is a boon for buyers who want to buy an apartment in Paris to live or to rent for a short term rental or empty/ furnished long term rental.

Added to this is a drop in mortgage rates, which are experiencing unprecedented decline (average fixed rate 2.38%), which will boost the purchase intentions of the French. The market is at its lowest, this is the perfect time to invest, acquire property.

Figures:

- Credit, average fixed rate: 2.38% for November 2014 (excluding insurance)

- Credit Application: + 20% in Q1 2014 compared to 2013

The Parisian market trends

For the first time since 2011, the average price per square meter in the capital fell below the symbolic threshold of 8,000 euros.

Indeed, the price fell to 7930 euro in January 2015, which represents a decrease of 5.4% from the peak prices achieved from 2012 to 8440 euros per square meters.

Currently, the average m² in the capital amounted to € 7,920. He declined to 1.9% year on year and 0.3% in the last quarter.

Figures :
-  Current median prices per square meter: € 7,920

- Price per sq.m median scheduled for May 2015: € 7,830

- Decrease of 5.4% from the peak in 2012 (€ 8440)