Over the past 12 months, the average price of a square meter of Parisian real estate has risen to €8,942, a 7.7 percent increase on last year’s figure. Those wanting to buy an apartment outright need to have at least €446,982 in their bank account. And that’s not even enough for a penthouse, just a standard 50m2 pad.
Looking at longer-term shifts in the capital’s housing market, the value of apartments has gone up by 45 percent since 2009 and an unbelievable 300 percent since 2000.
‘It’s shocking,’ Century 21’s Laurent Vimont told Le Monde. ‘Paris is on the way to a new record.’ That record is the symbolic €9,000 per square meter that is likely to be exceeded in the coming months.
These numbers are bad news for locals looking to get onto the property ladder, and their impact on the city’s demographics is already evident. High earners in management or liberal professions (lawyers, architects, doctors, and the like) now account for 46 percent of purchasers whereas the share of laborers and employees buying their own homes has shrunk from 13.9 percent to 6.8 percent.
Property pundits have identified three factors behind this surge in prices: Trump, Brexit, and Macron.
Horrified by their own president and enamored with France’s, Americans are once again looking to snap up a pied-à-terre in Paris. ‘They are still cautious because of the attacks,’ Belles Demeures’ Marie-Hélène Lundgreen, told Le Point, ‘but they think Emmanuel Macron is going to save the world,’ the director of the luxury-real-estate company added.
Brits have also been turning their backs on their home turf in favor of greener pastures on the other side of the Channel. Italians are still the most numerous foreign buyers in Paris, accounting for 17 percent of non-French sales, but Britons are closing in, making up 10 percent of them. The spending of wealthy-international buyers, the kind responsible for London’s empty-luxury enclaves, has also been chilled by Brexit; and Paris, which is vying to become Europe’s tech and financial hub, is looking like their next best alternative.
The general optimism of Macron’s En Marche! campaign—not to mention its success in the presidential and legislative elections this spring—and record-low interest rates are also increasing confidence in the French economy and stimulating the property market.
Of all the ludicrously-priced apartments that have come on the market in recent years, none tops the Île Saint-Louis’ €50,000 THREE-SQUARE-METER ground-floor loft (we know, it makes no sense) that went on sale in 2016. This worked out at €16,666 per square meter, which actually isn’t much more than the €15,433 one would pay on the Champs-Élysées, the city’s priciest district.
The lowest prices can be found in the north and east, with averages of €6,479 in Goutte d’Or and €6,372 in Pont de Flandre.