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real estate prices up about 9% with record transactions in 2017
The property market in 2017 defied talk of a slowdown with almost a million sales in the capital region and 40,000 in proper.
Prices in the capital grew an astounding 8.6% to reach €9,040 per m2 by the year’s end. Some 38,900 properties changed hands within the peripherique, not quite beating the record set in 1999 (43,000). Transactions were nonetheless 18% higher than in 2016, according to the Notaires who have released their figures for the final quarter of 2017 and the year as a whole.
The Notaires are predicting that by April prices in will have reached €9,320 per m2, an annual growth year over year of 9.3%.
In the whole Ile-de-France region, 968,000 properties were bought and sold last year. The year’s quarterly reports consistently showed accelerating growth in volumes in the suburbs with a deceleration in , owing to an increasing lack of supply (also the main driver of price growth).
What do all these figures mean for the average asking price? A 55 m2 apartment cost 38,500 € more over the course of the year (the average size of properties sold during the year). Will an interest rate hike affect sales? For the moment, the low cost of borrowing in France is a key factor driving sales. Still, in 2017, 2 out of 5 buyers were executives (39%), compared to just over 1 in 3 (35%) over the last ten years on average.
At year’s end, the most expensive arrondissements were the 6th (€12,510 average per m2 – not including agency fees), 4th (€11,600 average per m2, net-to-seller) and 1st (€11,510 average per m2). Somewhat misleading figures as they include all properties, including those on the ground floor, in courtyards, etc. Properties which typically do not appeal to the typical international buyer.
And what about the fastest growing? The 1st (12.3%), 9th (11.8%) and 6th (11.4%) top the list. The rejuvenation of the city’s luxury property sector after years of stagnation is an important factor.
And the tables below show the stark differences in Price between the least and most expensive arrondissements.