Real estate: real prices in Île-de-France, city by city

Real estate transactions in the Paris Region fell by a significant 25% in the second quarter of 2023, affecting all cities in the region. This trend is marked by an extension of the average property sales time, from just one month in 2022 to three and a half months in 2023, with an increase in negotiations on the part of buyers.

The fall in prices has also affected a wide range of properties, not just those with defects. Even quality properties are now being negotiated, with average discounts of up to 5%. However, some exceptional properties, such as houses with gardens in Neuilly, are resisting this downward price trend, selling for between 5 and 15 million euros.

In privileged areas such as Neuilly and Saint-Cloud, prices remain high, notably around €10,000/m², and can reach up to €15,000/m² for quality apartments. In Boulogne-Billancourt, on the other hand, prices have fallen more sharply, dropping by 10% in one year to just over €9,000/m².

This drop in prices is attributed to the rise in mortgage rates, from an average of 1.82% in 2022 to 3.80% in August 2023, reducing buyers' purchasing power by almost 20%. Experts believe that the only way to stimulate the property market would be for sellers to agree to reduce their prices by 10-15%.

First-time buyers are becoming increasingly rare on the market, while second-time buyers, particularly those able to pay cash for properties under €250,000, are becoming more numerous. What's more, buyers are paying increasing attention to the energy performance of their homes, avoiding properties rated between F and G.

The Climate and Resilience Act is also having an impact on the market, prompting estate agents to advise sellers to carry out work before putting G-rated properties on the market, as this can result in price discounts of up to 20%.

Lastly, despite the difficult economic situation, family homes in the best neighborhoods of listed cities remain popular, with prices remaining relatively stable at between €8,000 and €10,000/m². The Saint-Louis and Notre-Dame districts of Versailles are particularly sought-after for classic apartments with no work required.

In the Ile-de-France region, houses have maintained their value, with only a 1.9% year-on-year drop, compared to a 3.7% drop for apartments. In Vincennes, although apartment prices have fallen by 5.3% to €8,780/m², houses remain expensive, particularly a villa with an F energy rating, trading at around €1.9 million. In Fontenay-sous-Bois, houses near the Bois de Vincennes are sought-after and frequently sell for between €8,000 and €9,000/m², making them resistant to the downward trend in the property market.

Read the article here