Real estate prices in Paris are falling below pre-Covid levels

Real estate prices in Paris are falling below pre-Covid levels

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The m² in less than 10,000 euros in Paris? A fashion a year ago. Less and less capricious today. As property prices fall, we are getting closer and closer. Proof in numbers: last February, the m² traded for 10,550 euros in the capital, according to notaries in Greater Paris. This is a reduction of 1.2% over a period of one year. Declining trend that should continue in the coming months. “We expect a price per m² 10,410 euros in June 2022 in Paris“, They say, in their last note on the situation. This is a decrease of 2.4% in a rolling year. Unheard of for two years and the beginning of the health crisis! And to think that two years ago, the 11,000 euros per m² were to be exceeded …

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Some, among real estate observers, refer to the return to normalcy for a market that has climbed over 37% in 5 years (!) (see chart below). Paris is less popular, at least for traditional real estate, as luxury apartments are still very popular. For the past two years, households have preferred markets that are definitely more remote, but where they can buy bigger and cheaper goods. It remains to be seen whether this fall in prices will be confirmed over time, because by mid-2020, they had already taken a downward trend before rising again in early 2021.

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Less than 10,000 euros at Orpi

According to Meilleurs Agents, which has an average price of less than € 10,200 per m², the answer is yes. “Since last September, the decline has accelerated (-3.1%). For the 7th consecutive month prices in the capital have fallen. Unheard of for 10 years when the drastic closure of appropriations had divided the number of appropriations by 2.5“, Underlines the expert in electronic real estate appraisal. In this graying, large surfaces go better than small ones. There are still families who want to finish their work before the big holidays to be ready when school starts.

In Orpi, the leading real estate network (1350 points of sale), the symbolic bar of 10,000 euros has already been crossed. The average price of transactions in the first quarter in the capital thus fell to 9815 euros per square meter. “Paris continues, at the beginning of the year, to feel the effects of the wishes of many residents of Ile-de-France for other places with a 2% drop in prices (the first quarter of 2022 compared to the first quarter of 2021) “, analyzes Guillaume Martinaud, president of Orpi. In Laforêt (700 agencies), sales fell by 7% compared to the quarter of 2021. Even if, as the third network in France points out, this drop is “To qualify, after a year of all records in 2021“.

Photo: Notaries of Greater Paris

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However, the data is there: sales times increase by 8 days in Paris (84 days) and negotiations continue (from 2.9% at the beginning of 2021 to 3.84% today). “2022 returns to more wisdom and rationality, because most of the projects postponed in 2020 took place last year“, Deciphers Yann Jéhanno, president of Laforêt. A sign that buyers have regained control of sellers, who are undoubtedly more willing to lower their prices. What to boost sales in Paris? “Paris price erosion could open up new opportunities for buyers, bringing new liquidity to market“, The notaries answer.

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