2020 Paris Real Estate Report: Prices Expected to Increase


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Eiffel Tower and Paris Rooftops

According to luxury real estate agency Knight Frank, Paris is expected to lead global cities in terms of price increases, predicting a 7% rise. If you scan our analyses over the past four years, we called it. Importantly, Paris is not becoming unaffordable, because much of the price increases over the past three years are playing catch up with other major cities in the world.

2020 Paris Real Estate Report

We published “Paris Real Estate: The 7-Year Itch” in 2017, and in it we showed how Paris lagged most other big cities. In fact, Paris only caught up with former highs a few years ago. With Brexit and the possibility of more businesses and banks moving to locations such as Paris, we predict a continued rise in 2020 and beyond.

Knight Frank Predictions: Paris leads at +7%, followed by Berlin, Miami and Geneva.

Cost of Financing remains cheap in the Eurozone, adding to our confidence

Cost of Living in Paris is Still Affordable

Numeo published the 2020 Cost of Living Index in cities throughout the world. Paris ranked 24 on the list. Ahead of this affordable city, you’ll find four cities in Switzerland, three in Norway (we had no idea!) and a record eight of cities in the United States.

Rank City Cost of Living Index Rent Index Cost of Living Plus Rent Index Groceries Index Restaurant Price Index Local Purchasing Power Index
1 Zurich, Switzerland 128.29 61.66 96.42 127.96 124.73 126.90
2 Basel, Switzerland 125.54 45.76 87.38 124.99 123.11 121.47
3 Lausanne, Switzerland 124.02 50.64 88.92 127.26 123.61 110.52
4 Geneva, Switzerland 118.98 68.47 94.82 112.88 119.58 111.16
5 Bern, Switzerland 116.03 40.52 79.91 107.58 115.56 131.89
6 Stavanger, Norway 102.27 36.10 70.62 90.99 112.45 87.58
7 Oslo, Norway 101.66 44.08 74.12 89.35 112.04 86.47
8 Trondheim, Norway 101.55 37.61 70.97 95.53 102.74 89.31
9 Reykjavik, Iceland 100.85 51.25 77.12 84.91 120.60 81.07
10 Bergen, Norway 100.17 35.25 69.12 88.41 111.56 94.06
11 New York, NY, United States 100.00 100.00 100.00 100.00 100.00 100.00
12 San Francisco, CA, United States 91.51 115.58 103.02 86.91 94.45 135.90
13 Anchorage, AK, United States 91.36 38.94 66.29 88.42 78.89 118.44
14 Honolulu, HI, United States 89.70 63.03 76.94 89.83 83.60 88.29
15 Brooklyn, NY, United States 88.82 80.49 84.84 83.22 92.77 92.95
16 Aalborg, Denmark 88.40 24.20 57.69 75.30 103.05 115.92
17 Washington, DC, United States 87.74 78.18 83.17 86.44 87.48 130.25
18 Tokyo, Japan 86.87 38.00 63.50 83.42 56.70 89.70
19 Oakland, CA, United States 86.51 79.55 83.18 89.28 74.62 113.60
20 Tel Aviv-Yafo, Israel 86.36 45.34 66.74 73.01 93.75 74.31
21 Copenhagen, Denmark 86.23 44.49 66.26 62.78 104.61 90.70
22 Seattle, WA, United States 85.77 65.70 76.17 81.69 81.25 133.43
23 Seoul, South Korea 85.50 30.45 59.17 103.69 45.88 76.81
24 Paris, France 85.16 46.98 66.90 78.98 81.35 71.17
25 Luxembourg, Luxembourg 83.71 55.85 70.38 69.53 92.44 106.31
26 Boston, MA, United States 82.88 74.47 78.86 81.23 81.85 112.39
27 Bellevue, WA, United States 82.18 63.24 73.12 76.86 76.62 163.27
28 London, United Kingdom 81.30 70.01 75.90 57.31 89.04 78.16
29 Singapore, Singapore 81.10 63.27 72.58 66.75 58.99 88.96
30 Arhus, Denmark 81.08 31.17 57.21 62.42 88.73 100.81

For non-French residents interested in buying an apartment in Paris, there’s an additional and important fact: extremely low interest rates. With the right qualifications, one can finance for less than 3% in France, and the running costs are among the lowest anywhere.

Paris Apartment

Paris Perfect Property Search Services

If you’re interested in buying your own Paris property we have eight great tips to help familiarize you with the French buying process. It’s not easy! And if you’re ready to start looking for that Parisian pied-à-terre, we can help through our property search services. Click here for more information. For more insight about the Paris real estate market, check out this recent article from The Wall Street Journal about why Americans are buying homes in Paris.

 

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