Real estate prices in Paris: “we should drop below 10,000 euros per m2 in 2023”
By Thomas Martin
Published on
It is a symbolic level on the real estate market in Paris. According to Thomas Lefebvre, scientific director of Top Agentsthe average price per m2 in the capital could drop below the threshold of 10,000 euros thanks to a further drop in 2023. “We should observe a decline of 3% and thus fall below the 10,000 euro mark by next winter, or even before summer if the spring – normally the more dynamic in real estate – does not understand its rank in the capital,” he said in a note.
The rise in credit rates will have consequences on real estate purchasing power
After a year 2022 marked by a decline in prices of 1.2%, the conditions seem to be in place for the decline to continue. This meant that the market is established at half mast in the capital, restoring a price level of 2019. by the ECB – this will impact the borrowing capacity of households and therefore their solvency, resulting in a de facto downward adjustment in prices”, judges Thomas Lefebvre.
If the 20-year loan rate climbs to around 3% during the course of the year, this will represent for project promoters a further drop of 6% in their purchasing power immovable. And will affect even more the most expensive cities like Paris.
Furthermore, the ban on the rental of Thermal colanders Should be followed by an acceleration of the decline in prices for this type of housing. As of January 1, 2023, it is indeed prohibited to rent properties that consume more than 450 kWh/m² of final energy per year. From 2025, this ban will concern all goods classified G before being extended to F labels in 2028 and E in 2034.
Six arrondissements in Paris under the 10,000 euro mark
At present, the m2 is negotiated on average 10,278 euros in the capital. Six boroughs are below this level in Paris: 10th, 12th, 13th, 18th, 19th and 20th.
Mid-October, Century 21 and Orpi indicated that prices in Paris had fallen below the 10,000 euro mark. According to these two major networks, prices were on average 9758 euros and 9615 euros respectively at the end of September. What to send back a pass of arms with notaries.
One of them, Me Thierry Delesalle, had also challenged journalists on this subject on Linkedin: “you have to check and understand the sources you cite. No, the Parisian price per m2 has not crossed the 10,000 euro mark. It would even tend to go up towards 10,600 euros even if we can regret such prices. Century21 represents only a small minority of Parisian transactions, often taking place in arrondissements that do not register the strong increases seen in other sectors”.
Best Agents also denied going under the symbolic bar. This time, it looks like we’re going straight for it.
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