Paris Property Market 2022
3rd April 2023
The Paris notaires have published their review of the market for last year and the outlook for 2023.
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According to the notaires, both sales and prices held up strongly, although signs of a slowdown became apparent towards the end of the year.
With 41,000 apartment sales in the year, the capital recorded an exceptional level of activity, 10% higher than in 2021.
The following graphic shows the number of sales each year since 2002 as well as the average price of apartments.
Nevertheless, the notaires point out that the growth in sales occurred in Q1 to Q3, but fell back by -1% in Q4.
Market analysts Meilleurs Agents report separately that a two-speed market emerged, with conventional properties suffering from the economic situation and seeing their value erode, whilst high-end properties continued to be snapped up, particularly by international buyers. We reported on the strong international interest in our recent article Luxury Homes Market in France
The graphic below shows the movement in the price of apartments in the year.
Strongest price growth of +3% occurred in the central districts (arrondissements) save for the 5th, where prices remained stable. Price falls of up to -4.3% were observed in the outer districts.
The graphic below shows the average price of apartments in the year. Highest average prices of +€14,000 per m2 were in the 6th district, whilst lowest prices of €8,780m2 were in the 20th district.
However, there are micro-markets within each of the districts, and prices in several of the central areas can reach +€20,000m2 for the most prestigious locations and properties.
Outlook
The notaires report that the beginning of 2023 has been a continuation of the previous months.
They consider that the increase in interest rates and more difficult credit conditions is depriving the market of its main driving force.
In the coming months, economists are also anticipating an extension of monetary tightening and persistently high inflation, in a difficult economic and geopolitical context.
Overall, the notaires therefore consider it difficult to see new factors improving conditions, after an exceptional period of activity.
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