How is the real estate market in Paris?
We note that in 2022 the Parisian real estate market has experienced a decline of 1.2%.
The Parisian real estate market is also highly dependent on interest rates: when interest rates then rise, they are reluctant to spend a significant portion of their income on loans.
Precisely since January 1, 2022, access to credit has become more difficult.
Banks are now required to apply the rules of high financial stability.
These new rules prevent you from borrowing more than 35% of your income and 25 years of repayment.
The real estate market down in 2023 ?
In 2023, real estate prices continue to fall in Paris both in the central arrondissements and in the suburbs. Indeed, prices are decreasing but transactions continue to grow. More and more buyers are bidding. The seller can no longer be tracked and the goods cannot be found. Lessors, who had anticipated the price increase, found themselves at a disadvantage in the market. They are then forced to lower the price of their property. It is estimated that the price of small areas has fallen due to the implementation of the new DPE law. While supermarkets will continue to see prices fall, but more slowly.
The price per square meter has fallen below €10,000 in some arrondissements such as the 12th and 13th arrondissements.
Why this decrease ?
In particular, the drop in prices has been felt since the Covid crisis.
Indeed, many Ile-de-France residents decide to move to quieter neighborhoods or settle in the suburbs.
The loss of Parisians has led to a drop in prices in all areas of the capital.
There are more than just good Parisian markets and you have to sell.
To correct the market, people need to be incentivized to invest and this naturally happens through lower prices.
But why is Paris less attractive than before?
Although the city retains many of its properties, life is no longer pleasant.
Prices are very high and daily life is stressful for many people.
From a more economic point of view, the capital is experiencing a huge increase in the supply of real estate in the first of 2021.
Buyers, for their part, have given themselves more time to invest.
Audrey Hepburn.
What will be the impact of the DPE on apartments in Paris ?
As a reminder, in July 2021 a new provision was put in place for the DPE concerning the method of calculating it and it is accompanied by a ban on renting for thermal strainers :
-G in 2025
-F in 2028
-E in 2034
New energy performance diagnostics encourage homeowners to carry out energy renewal work.
This new rule could encourage some homeowners to sell their homes.
Homes that have undergone these energy works have decreased in prices by 2022 or in the years to come
It's not too late to invest
These regulations will not prevent you from buying and renting properties.
Instead, use these rules to sell trades.
Today, Paris has more than a third of the housing in France.
It is therefore not possible for all these houses to become primary residences by 2025.
Also consider investing in homes.
Well renovated, they can offer you more than an apartment.
In particular, you can create several dwellings in the same building.
Les prédictions pour l’année 2024
Due to the high volatility of real estate and the impact of the coronavirus crisis, many experts from consulting firms agree that there can be no market after 1 or 2 months. Any good news related to the health crisis could boost sales of apartments or houses in Paris. We can therefore imagine that prices will continue to fall in the first half of 2023, as they will rise in the second half.
Proxinvest experts say that the average Parisian price would fall by 10% within five years.
Despite this, if you are a rental investor it is still appropriate to invest in properties classified F or G.
Need a
estimate of your property?
The valuation of an asset is an essential step in the transaction process, which is why, it should not be taken lightly, the software is an excellent tool for pre-estimation.
In order to know the current market value of your property, contact us!
You will be put in touch with one of our collaborators, expert in his sector, he will be able to take into account different economic elements, the latest sales, and correlate all this with the searches of buyers for a quick intermediary and price.
We will send you an estimate in 48 hours.
Posted on 28/02/2024 by
