Paris Real Estate Prices

As though totally nonplussed by the financial turmoil swirling around the real estate markets around the rest of the world, Paris real estate prices continue their slow, steady march upward.  According to the latest figures published by the Notaires association, the average price for Parisian real estate increased 9.4% from April 2007 to April 2008.  To view the report, click here.  However, according to the same report, the total volume of sales decreased by over 13%, perhaps indicating an increasing resistance to the higher prices.

From a practical standpoint, based on my personal experience of searching the real estate market, this price figure appears to be low.  Local agents are aggressively pushing prices upward every day, and now most core area apartments seemed to be priced at or above 10,000€ / m2, irrespective of the apartment’s condition or location.  Good quality apartments are hard to find, and those that do appear are priced in the 12-15,000€ range.  To me, prices are starting to get absurd, yet they continue to sell.  Is the Paris market heading for a bubble?  I do not know, but my feeling is that true prices have skyrocketed over 20% in the last 6-9 months alone, and this rate is unsustainable in the long term.

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