Beauchamp Estates : Market Condition Analysis
Since the beginning of the recession in 2007, the volume of sales in Paris has dropped inspite of the continued increase of the price per square meter; according to statistics released by the “Chambre des Notaires de Paris”. This phenomenon is even more obvious in the most sought-after areas of the French capital. One can ask whether the recession had a real impact on the luxury real estate market in Paris…
The Parisian market remains strong
In spite of the decrease in the number of sales in the second trimester of 2012, we can notice a continual rise of prices but longer delays in transactions. The left bank of the Seine attracts international clients, apartments between 2 and 5 million euros tend to stay on the market a month and a half on average, i.e twice as long as at the beginning of the year, assuming a correct evaluation. A fall in the number of properties sold at the lower end of the spectrum is expected.
The most exclusive areas of Paris
According to a report by the “Chambre des Notaires de Paris”, the price per square meter in the most exclusive areas of Paris continues to rise for newly built properties and remains steady for old properties.
In the 7th district, the second most expensive in Paris, the new development “Allée Laennec” saw all of its units sold in just a few months with prices from 10.000€ to 30.000€ per square meter.
Avenue Bosquet is one of the most sought after and expensive streets of the 7th disctrict. Prices are between 18.000€ up to 25.000€/sq m for exceptional haussmannian properties with view over the Eiffel Tower for instance.
In the 16th district of Paris, the price for unmodernised apartments is 20.000€/sq m in average whereas for modernised it is 25.000€/sq m. However exceptional properties can see their price per square meter double or triple, this is the case of a renovated triplex apartment located Avenue du Président Kennedy whose price is close to 60.000€/sq m.
In the Golden Triangle of the 8th district, (as denoted by Avenue Montaigne, Rue François 1er and Avenue George V), prices keep increasing as HNWI were prepared to spend over 20.000€ per square meter in 2012. The average price per square meter was 20.000€; according to leading market research in reference to real estate facts, the average price has risen by 1.9%. Avenue Montaigne, prices can reach up to 35.000€/sq m depending on the side of the avenue, the standing and style of the residence, the view and the level of the apartment. Avenue Montaigne has even seen apartments selling at close to 50.000€/sq m.
For modernised properties, prices vary between 25.000€ and 35.000€/sq m. For unmodernised properties prices vary from 16.000€ to 20.000€/sq m in average.
A drop in prices in the real estate markets of Paris is not to be expected. Owners are not prepared to accept an offer if it does not reach the actual market value.
In an October 2012 press release, the “Chambre des Notaires de Paris” states that investing in the Parisian real estate is safe and profitable.