Paris is divided in 20 so called arrondissements, municipal entities with their own town hall, each with its own character and charm.
Over the last 10 years we at ParisScarabee Househunters have seen property prices increase in Paris and its suburbs significantly, by on average 40% or more. Demand is huge, whilst the supply is very limited and often of mediocre quality. If an apartment is of good quality and correctly priced, there is often very little time to wait and make an offer for an apartment, as there are many competitive buyers. Fortunately, buyers have a 10 days "cool off" withdrawal opportunity.
Prices inside Paris have increased with a solid 5,8 % in the first quarter of 2017 compared to the first quarter of 2016. The number of transactions rose by 38% in the sameperiod! As seen in other cities where terrorist attacks happened, we expect that the terrorist attacks will only have a temporary negative impact on the property market provided that the situation stabilises. Therefore, we expect that given the high local and foreign demand and low supply of good apartments on the market, plus the low interest rates, property prices will probably increase by 6% in 2017. 2017 is therefore the right year to buy. The mortgage interest rates are historically low at the moment : around 2,5% for a 20 years fixed mortgage term. Banks normally require a mortgage borrower to make an own contribition to the purchase price of a property of approximately 25%.
Depending on the location of existing apartments the average purchase price per m2 (almost 11 square feet) in Paris is currently approximately 9.275 Euros, ranging from approximately 6.800 Euros in some parts of the 20th arrondissement up to 10.000- 25.000 Euro per m2 in some parts of the most upmarket arrondissements (1st, 4th, 5th, 6th, 7th, 8th, 16th, 17th). By December 2016 the average price per m2 in Paris is expected to be around 8.500 Euros.
Generally speaking apartments in "Hausmannien style" buildings, in Art Nouveau, Art Deco, Pierre de Paris or Pierre de taille buildings are often preferred by foreign buyers over more recently constructed buildings, for being "typically" Parisian. On the photos on the right you see some examples of these styles.
Most locals also prefer these types of apartments. Although often these older apartments need to be renovated, they still carry a premium upon purchase.
Apartment surfaces range from say 10-15 m2 for a small studio or "chambre de bonne", to 350m2 or more for prestige apartments. Given the high purchase price of apartments you have to count on a minimum of 35-45 m2 for a one bedroom apartment, a minimum 55-65 m2 for a two bedroom apartment.
In the suburbs, and in particular the ones which are located most far away from the city centre of Paris, the so called "second ring" suburbs, prices are generally much lower. In certain "first ring" suburbs situated close to Paris - West, South and East of Paris - like Neuilly, Issy-les-Moulineaux and Vincennes, prices could sometimes be as high as in the best arrondissements in Paris.