Property Prices Falling In Paris

Property prices fell in Paris last month, with one expert suggesting that the attractiveness of the capital has waned as priorities for buyers have changed during the pandemic. In its latest market barometer, property website Meilleursagents said that the average price of property in Paris had stopped increasing and even dropped by 1% last month (November 2021). Barbara Castillo Rico, head of scientific research at Meilleursagents commented: “Paris no longer appeals to buyers looking for space, greenery and purchasing power, leading to a slowdown in prices of around 3.4% in just 14 months.” Property in Paris is still expensive. However, the data suggests that prices are overall reasonably stable. As of December 2021, prices varied from €9,455 per square metre in the 19th arrondissement, to as much as €15,305 in the 6th. Just three neighbourhoods, in the 13th, 19th, and 20th arrondissements, have prices lower than €10,000 per square metre. Property agents have said that buyers are more demanding and taking more time to discuss prices, especially for properties that need work. One three-bedroom property, marketed at €550,000 in the 13th arrondissement, received offers of €500,000 – 10% less than the asking price. For higher-end apartments, there has been no drop in price, as “buyers are ready to invest large sums for well-located flats with impeccable facilities, of which there are very few in Paris. There are fewer apartments being used for short-term, as the pandemic affected tourism and stricter rules on platforms such as Airbnb mean investors are no longer as interested. This influx of smaller apartments has lowered demand and affected prices. Similarly, fears over energy certificates are causing uncertainty in the market. Property website SeLoger has indicated that between September 2020 and October 2021, the number of homes put up for sale with an energy label of E, F and G jumped by 74% in Paris compared to September 2019 and October 2020.  The new energy law, le loi Climat, is set to ban the rental of accommodation with a G rating from 2025, F from 2028 and E from 2034. Affected property owners who wish to keep their properties on the market will need to make the adequate changes by these dates. Parisians are also leaving the capital in ever-greater numbers, reducing overall demand, with a consequent drop in prices. The capital is now losing an average of 10,800 people each year, whereas it was gaining 14,000 per year between 2006 and 2011. The shift in trends in Paris comes as property prices elsewhere are rising, especially on the Atlantic coast. Non new-build houses outside of Paris are among the properties to have seen the biggest increase in price, largely due to the ‘longevity of remote working’ since the start of the health crisis.