The Paris housing market is showing strong signs of recovery, with a spectacular rise in sales in the first quarter of the year.

In their latest report on the capital, the French notaires state that between February and April this year homes sales surged by 89% in comparison with the same period a year earlier.

Given the morose nature of the market during the first quarter of 2009 then some perspective is needed on this increase.

Nevertheless, even by comparison with earlier years, the bounce in the market is incontrovertible, with a 19% increase in sales over the same period in 2008, and 6% up on the same period in 2007.

Also worthy of note is that the increase in sales occurred across all types of properties, houses as well as apartments.

Prices of apartments in the capital also increased over the period by 2.9%, while house prices in the Ile de France rose by a more modest 1.2% in the period.

On a annual basis, therefore, prices in Paris have increase by 5.3% over the period April 09/April 10, while in the Ile de France the rise was 4.2%.

The notaires consider that the shortage of property and low interest rates driving demand are the main reasons for the rise in prices. Nevertheless, they do not consider that prices will rise significantly in 2010.

A report released this week by FNAIM, the French estate agents association, confirms the upward tendency in prices in Paris, although they state the city is something of a peculiarity, and that prices elsewhere in the country remain stable.

The average price of an apartment in Paris at the end of April was €6,430 per m2.

The table below shows the average price for existing apartments in each arrondissement of the city over the past three years.

In most cases prices are now are above or close to those in 2008.