Property prices in the Ile-de-France rose significantly in the second quarter of this year, despite a substantial fall in the number of sales.
According to the latest review of the residential property market in Paris by the French notaires, apartment prices in the capital increased on average by +8% over the past 12 months (+2.1% in the second quarter) to reach an average of €10,690m2.
Over the past year apartment sales fell by -6% (162,000 in total), but by -28% in the second quarter, compared to 2019, due to the impact of 6 weeks of lockdown in March/April.
The table below shows the movement in prices over the past year for apartments in the 20 administrative districts (arrondissments) of Paris, showing variations in prices increase ranging from the 9eme arrondissement where prices rose +2.1% to the 20eme where prices rose +12.2%.
The graphic below shows the average price of apartments in each of the arrondissements, ranging from €8,930m2 in the 19eme at the bottom end, and the only district below €9,000m2, to €14,320m2 in the 6eme.
However, there are also significant variations within each arrondissement, with the administrative quartier of Pont de Flandre in the 19eme having the lowest average prices of €7,870m2, followed by La Goutte-d'Or in the 18eme at €8,550m2. At the top end there is Odéon, located in the 6eme, where apartment prices average €17,130m2. Not far behind is the Champs-Elysées in the 8eme, where prices average €16,350m2.
The notaires report that prices and activity also rose strongly, by |+7.4% in the three departments of the inner ring (Hauts-de-Seine, Seine-Saint-Denis and Val-de-Marne) and by +5.3% in the outer ring (Seine-et-Marne, Yvelines, Essonne and Val-d'Oise), after many years of stability for this area. Houses, in particular, are attracting stronger interest, with buyers seeking more space and a garden. That is reflected in the price increases, which are on a par with those occurring in the capital itself.
The following table shows the average prices for apartments and houses and the average movement in prices in the past year for each of these departments.
|Ile-de-France Property Prices June 2020|
|Department||Average Apartment Price m2||Average % Annual Increase||Average House Price||Average % Annual Increase |
|Val d'Oise ||€2,850m2||+6.1%||€293,600||+5.6%|
Perhaps not surprisingly, the notaires consider that the outlook for the market, like the outlook for the economy, remains uncertain, stating: "Si le marché immobilier bénéficie d’un effet valeur-refuge renforcé et de taux de crédit toujours très attractifs, il reste dépendant de la situation économique."
Separately, recent reports from estate agents and market analysts suggest that, in September, sales in the capital slowed, and prices either stabilised or fell.