Real estate: the price per square meter is around 9600 euros on average in Paris

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Prices continue to rise in the capital (Credits: Pixabay)

In a market hit by a shortage of housing supply, prices continue to climb in the capital but at a slower pace than a year ago. All districts of Paris are affected by this price increase.

Housing in France costs more and more. The figures published this Thursday by the INSEE and the notaries prove it. While the rise in prices of old real estate accelerated in France, it slowed down in Paris. At the end of 2017, they climbed by 8.7% (evolution in Q4 2017 over one year). Two quarters later, the increase is "only" of 5.7%. The m² is thus traded on average in the capital at 9570 euros.

Should we therefore expect a lull on the prices of the old real estate in Paris? This does not seem to be the case in the short term. According to the advanced indicators on the notary contracts of the notaries of Greater Paris, the bar of 9700 euros should be reached next April. That's an increase of about 7% over one year. "Mortgage rates, still historically low, should remain in the coming months – real estate brokers talk about the first six months – providing decisive assistance to households, explain the notaries. However, the question of trust, which plays a decisive role when it comes to debt in the long term, may arise in the coming months for buyers.

Certainly, France has broken a new record of housing sales in 2018 (970,000 transactions) but the real estate market remains fragile. The shortage of offers being cruelly felt in the face of a demand that is starting to count, prices remain particularly high in the capital. A statistic to prove it: prices per m² have increased in all the arrondissements of the capital in one year (see below), the most expensive and the most affordable. It was in the IVth (+ 11.7%) and VIIIth (+ 10.2%) that the prices per m² rose the most. Even the smallest increase (+ 2.3% in the fifth, one of the most expensive areas of the capital) is greater than inflation (1.8% in 2018).

Two consequences of this surge in general prices: the first seven districts of Paris have prices per square meter higher than 11,000 euros per sqm. They were "only" five in this case a year ago. And that's not all: the m² is trading at more than 10,000 euros per square meter in nine districts (the first seven plus the eighth and sixteenth). They were seven a year ago. Another impact: only the nineteenth arrondissement remains below the 8,000 euros per sqm (7930 euros) it should soon exceed this rate. A year ago, there were two (the nineteenth and twentieth).