The decline in real estate prices is accelerating in Paris.
Weakened by the rise in interest rates, Parisian property prices continue to decrease: -0.6% in November, -0.8% in October, and -0.7% in September. Most recently, 8 arrondissements fell below the 10,000€/m2, including 4 below the 8,000€/m2.
Sales process is slowing down, and inventories are growing.
The era of ultra-fast sales from the post-Covid period is over. Now, properties take time to find buyers. Between the rise in interest rates, the decrease in real estate purchasing power, reduced access to credit, there are plenty of reasons to explain the lengthening of the sales process. Paris stands out with a volume of available properties increasing by "only" 34% over the same period.
This percentage is significantly below those recorded by other major cities, but it should not be forgotten that the capital experienced an increase in its inventory of properties for sale since the health crisis: +123% between 2020 and today.
More numerous and significant negotiations.
In this context of increased supply and reduced real estate purchasing power, the proportion of sales that have undergone negotiation is significantly increasing. The balance of power between buyers and sellers shifts in favor of the former. Sellers, in turn, have no choice but to lower their prices, lest they remain with their property. In Paris, the negotiation margin reaches 5.1%, which is 1.3 points higher than in January 2022. For an apartment offered at €500,000, this means saving €25,500. A blow for sellers but a great opportunity for buyers!
Happy property hunting, and may your French real estate journey be as smooth as a buttery croissant! 🥐 🇫🇷
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