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Notaires confirm breach of €9,000/m2 average and expect €9,200 by February
The Notaires have confirmed what numerous other outlets speculated on: in October, the the average asking price per m2 breached €9,000. What’s more, by February they are predicting the market will have reached fever pitch, with 9% growth and a price/m2 of €9,200.
Many property listings sites reported it at different points, but it’s never official until the Notaires – the profession that finalizes all transactions and has all market data – confirm the fact. In a press release on January 4, it announced that by the end of October, property prices in reached €9,020 per m2.
The next report, which will cover the months of November, December and January, is expecting price growth to reach 8.9% and a city-wide average of over €9,200/m2.
Earlier reports showed a wide disparity between different parts of the city. The most expensive neighborhood (there are roughly four neighborhoods in each arrondissement) is twice the price of the most affordable. Saint-Thomas d’Aquin in the 7th arrondissement has an average asking price of €14,650/m2, while properties in La Chapelle in the 18th go for €6,760/m2. When comparing these figures to current market asking prices, it is important to note that these average figures are net-to-seller prices and do not including listing agency fees or any negotiation room down from asking price.
With fewer and fewer properties on the market and the bulk of construction taking place in the suburbs where land is more plentiful, demand vastly outweighs supply. The result is continuing price growth even though fewer properties are changing hands and mortgage rates are creeping up, albeit very slowly.
We recently wrote about a report from Savills that placed first for 2018 luxury property market prospects, anticipating 9% growth in the sector, and almost zero growth in New York and London. It will interesting if price growth in the high-end segment outpaces the wider market, although subjective definitions of the former mean hard stats are harder to come by. Some luxury agencies reported double-figure price growth in 2017.