Archive for April, 2009

Paris Prices Fall Slightly in 4th Qtr 2008

April 8, 2009

According to the quarterly report published by the Notaires of Paris, prices of apartments in Paris fell by 1.9% in the 4th quarter of 2008, compared to the same quarter in 2007.  For the year, real estate prices in Paris appreciated 2.5% over 2007.  Considering the global real estate crash, including other major cities like London and New York, it appears that prices in Paris continue to show relative strength, particularly considering that a fair portion of purchasers are foreign, and that market has vanished.

Here is the picture of 2008 price changes for each of the arrondissements.  As you will note, many of the neighborhoods actually showed price growth in 2008.

4th-quarter-2008-paris-prices1

I suspect that prices will continue to soften somewhat for the first 2 to 3 quarters of 2009, reflecting a continuing weak demand due to the global recession.  This reduction in prices is not due to a “bubble”, unlike the situation in London, but is suggesting that the current global reality affects everyone, including the French.

Property elsewhere in France did not fare so well, with prices falling an average of 1.5% for 2008, compared to 2007. Many of the popular Riviera departments suffered higher than average property value declines.