“Paris Real Estate Market Facing Decline, Some Districts Bucking the Trend”

Real estate prices have been falling in Paris since the start of the year. This is the report presented by the notaries of Greater Paris this Tuesday, June 30. In line with the national trend, the real estate market is indeed declining in the capital. On average, the price per square meter thus fell to 10,310 euros in the first quarter of 2023 (-2.0% in one year). Prices in the capital have thus continued their almost continuous erosion for three years. By way of comparison, in November 2020, the value of the properties had reached a peak of 10,860 euros per square meter.

The rise in interest rates, which exceeded the 3% mark in April, has in fact cut off a large part of the purchasing power of borrowers. As a result, sellers have more difficulty finding solvent candidates, and often have to accept significant price reductions to finalize their transaction.

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Contrary variations according to the arrondissements

Nevertheless, and as is often the case when talking about real estate, not all the districts of the same city are driven by the same dynamics. Prices are eroding in a majority of boroughs… while in others, going against the average, they are on the contrary rising.

As you can see on this map, average prices are down in most arrondissements… with the exception of the center of Paris (1st, 2nd, 3rd and 4th), as well as in the highly rated 6th and 7th arrondissements of the capital. “The districts whose prices are still rising are those where foreigners are very present”, explains Élodie Frémont, the president of the real estate statistics commission of the Notaries of Greater Paris and notary in Paris. Conversely, prices plummeted in the 19th arrondissement (-4.5% in one year), the 20th (-4.0%) and the 14th (-4.5%).

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