–Real estate purchasing power increases when crossing the ring road (© Philippe Lopez – AFP)–
In the south, north and northeast, the prices of the municipalities bordering Paris are significantly lower than the prices of the outlying districts of the capital. On the other hand, in the south-east and west of Paris, we find prices closer to the neighboring Parisian districts.
(BFM Immo) – Notaries have noted for a long time that no town adjoining Paris is as expensive as the district it adjoins. In the third quarter of 2020, the price of apartments thus reached more than 10,000 euros per m² overall in the inner districts of Paris on the edge of the ring road, while it was 7,000 euros per m² in all the municipalities located in the other side of the ring road, as specified in a study of notaries published at the end of January. This discount of around 30% remained the same in 2019 and 2020. But in some municipalities, the real estate purchasing power for Parisians who cross the ring road is much greater.
The notaries put forward two extremes. Thus, “in Neuilly-sur-Seine (10,870 euros per square meter in the 3rd quarter of 2020), prices are practically as high as in Ternes, the adjoining district (10,920 euros per m²). In contrast, in Aubervilliers and in Saint-Denis, apartment prices (around 3,900 euros per m²) are 57% lower than in the neighboring Parisian district of La Chapelle (9,070 euros per m²) “.
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Two major trends
Notaries see two main trends. First of all, in the south-east and west of Paris, around the Bois de Boulogne and Vincennes, the prices of the municipalities are close to those of the neighboring Parisian districts. In the south-east, the discounts reach 7% in Vincennes and Saint-Mandé and 15% in Charenton-le-Pont. In the West, the discounts are even more moderate and reach 0.5% in Neuilly-sur-Seine, 10% in Levallois-Perret and 16% in Boulogne-Billancourt.
Then, in the south, north and northeast, the prices of the municipalities bordering Paris are still significantly lower than the prices of the outlying districts of the capital. “This observation applies to the whole of Seine-Saint-Denis. In Lilas, the most expensive town bordering Paris in the department, the price per square meter (6,530 euros) remains 28% lower than that of the Saint-Fargeau district in the 20th arrondissement “, note the notaries. “Going from the neighboring districts of Paris to Clichy, Saint-Ouen, Aubervilliers and Saint-Denis makes it possible to reduce the cost of acquisition by 40%, 43%, 55% and 57% respectively”, they still note.
The south is also experiencing significant discounts. In Ivry-sur-Seine in Val-de-Marne, it is 42%, in Kremlin-Bicêtre 34%, in Montrouge and Issy-les-Moulineaux, in Hauts-de-Seine, it is 28% . In Vanves, it is 33%.
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Municipalities more expensive than Paris in 2000
Have these differences changed over time and how? The study precisely compares the real estate prices of the cities adjoining Paris and the closest districts of the capital in 2000 and in 2020. Over the period, “the price differences between the Parisian districts close to the ring road and the adjacent suburban towns have increased. tended to widen, ”the study authors point out. On average, the differences go from 28% in 2000 to 31% in 2020. “But this average hides strong changes and still strong disparities,” they continue.
20 years ago, “in 2000, four towns were more expensive than the neighboring Parisian district: Vincennes (+ 16%), Saint-Mandé (+ 7%), Neuilly-sur-Seine (+ 5%) and Charenton-le-Pont (+ 1%). They have therefore lost ground during these two decades and are now less expensive “, note the notaries.
On the other hand, the valuation exploded in the Parisian districts bordering Saint-Denis and Aubervilliers. In 2000, Saint-Denis and Aubervilliers were 31% cheaper than La Chapelle and La Goutte d’Or. “But their prices have not kept up with the exceptional increase in the two Parisian districts (458% and 469% increase in 20 years). Thus, despite significant price increases of more than 250% in 20 years, these two municipalities show in 2020 a price more than 50% lower than the prices of neighboring Parisian districts “.
These cities where the gap is narrowing
We can thus distinguish three groups of municipalities. In the first, the price differentials (in%) have widened over the past 20 years. This is particularly the case for many cities of Seine-Saint-Denis, Vincennes, Saint-Mandé or Neuilly-sur-Seine, with gaps that have increased from 5 to 26 points compared to what they were in 2000. The prize goes to Aubervilliers: prices were 31% cheaper in 2000, it is now 57% less, or 26 points more.
In a second group, the differences remained stable (between -3 points and +1 point). This is the case for Vanves, Issy-les-Moulineaux, Montreuil or even Ivry-sur-Seine.
Finally, in other cities, the neighboring municipalities have reduced the gap (between 5 and 16 reduction points) with the neighboring districts of Paris. Mention will be made, for example, of Malakoff, Boulogne-Billancourt, Saint-Ouen or Levallois-Perret.
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