Thinking of buying an apartment in Paris? If you’re wondering about the ins and outs about purchasing an apartment and how to determine when is the right time to buy, check out our latest posts on Buying an Apartment in Paris or visit our detailed guide on investing in property in Paris. Our team keeps a close eye on the Paris property market, which has included many changes over recent years. Read on to find out more!
Updates in the Paris property market
A new focus for Paris property buyers is the importance of energy performance. With the new climate friendly regulations in play, properties with a rating of EPD of G or lower will be prohibited for rental in 2025, while ratings of F or lower will be prohibited in 2028. This could affect the possibility to obtain a French mortgage for poorly rated properties in coming years. Not to worry, if the apartment of your dreams has a low energy performance rating, you can easily increase it by installing double-pane windows throughout and optimizing your heating system. For example, you easily can install thermostatically controlled radiator valves.
Our buyer’s agent service can advise you about any possible concerns about an apartment and help you find the best way forward and obtain quotes from our trusted renovation partners to allow you to properly estimate the total cost of purchase before you decide to buy.
Why we still love balconies
A balcony in Paris is always a good idea and data shows it makes financial sense. From May 2020 to May 2023, the presence of a balcony or terrace in Paris has increased the overall value of a Paris apartment by 8.2% on average.* Due to the scarcity and competition for Parisian balconies, these apartments will be much better valued and increase in value faster over time compared to apartments without outside space.
This is why using a buyer’s agent in Paris is critical. Paris Perfect has the network and expertise to rise above the competition to find and secure your perfect premium Parisian home. We will always give you our honest opinion on the value, potential and appropriate price.
Real estate prices in Paris
As of May 2023, the volume of apartment sales in Paris is down 24% and the average real estate price per M2 is down 2.6% from one year ago.** This is driven by the sharp increase in French mortgage rates combined with higher inflation that has led to lower household purchasing power in 2023.
In recent years, prime Parisian apartments have sold immediately at asking price; no negotiations possible. However, this has changed slightly. On average, currently only one in three apartments now sell at list price, compared to one in two in 2020. This also means that sellers are more realistic in terms of the price, contributing to the 2% year over year decline. As mentioned in our previous blog article, this is excellent news – but do NOT expect big discounts on the best properties. The average discount off list price for Paris is -3.3%. With 20 years of following the market, we predict that premium apartments will never be lower than -3-5% of list price no matter what economic shocks occur.
Should I buy now or wait?
With a slower overall real estate market in France and globally, and the possibility to negotiate on price and French mortgage rates still well below the US, it’s definitely a good time to buy your dream Parisian home now.
Our French mortgage team predicts that interest rates should continue to rise until the end of the year to reach around 4.5% for residents, 5.5% for non residents.
Recent Example: The benefits of a good buyer’s agent
We found a fabulous apartment for a client three weeks ago. As ever, it was thanks to our hidden network of concierges and neighbors. The concierge of a favorite building told us an elderly owner of 97 years old had passed away and the children were getting ready to list the apartment for sale. She gave us the name of the daughter, who we contacted immediately. We viewed the apartment one hour later; daughter gave us the price the family wanted. We put in a full price offer, contacted our notaire immediately to confirm it – and called our clients just as they were waking up in New York! We knew there was no time for them to fly over and view it and on seeing the photos they agreed.
Unfortunately, the family had spoken with an agent earlier that week. The agent heard the sellers had a buyer and rushed to send an email to their buyer’s list immediately. Several buyers presented themselves immediately. And one offer almost killed the purchase for our client. The notaires had not had a chance to confirm acceptance in writing; new buyer offered €100,000 more and included their financial statement to prove purchasing power. How could we save the purchase? We contacted the daughter, sent our buyers’ financial summary and promised the quickest possible closing with an offer of €75,000 more. The quick closure won out because they had estate taxes to settle. We won the apartment for the buyer. And even €75,000 more was an excellent price.
If you’re searching for an apartment to buy in Paris or are ready to start the process, contact our team at [email protected] to find out more!
**Notaires de Paris