Paris Property Prices Rise Again

The 3rd Quarter information on Paris property prices are out, and once again, prices are up, appreciating at an annual rate of 8.7%.  These are figures that most of us in the US can only drool over, as we watch home prices here stay stagnant or plummet, as is the case in Florida and California.  How is Paris able to chalk up gains, quarter after quarter, for the last 10 years?  From my perspective, the answer is quite simple.  A fixed supply of quality housing, coupled with international demand and modest appreciation year after year, spell success. None of this ridiculous 40%/year appreciation fueled by speculation.  Take a look at the chart below:

3rd Qtr Paris Prices

What does the future hold?  Who knows, but I would count on future price increases slowing down slightly to the 5-6% range as the international economy slows down.  But there is nothing in my cloudy crystal ball to indicate a downturn in the market sufficient to reverse the appreciation experienced over the last decade.

Every arrondissement experienced gains, with the 5th, 7th, 16th and 19th arrondissements experiencing double digit appreciation.

For more information or to read the full report (in French), go to www.paris.notaires.fr

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