Paris property market update – April 2023
Posted on April 6, 2023 by Susie Hollands
The prime and super-prime Paris property market has never been more in-demand. As a result, prices per square metre for the best addresses in the city now sit at around €45,000. These are some of the highest prices ever seen, and there is no sign that they are going to drop. The best properties – anything overlooking a garden, in a prestigious location like the 7th arrondissement (administrative district of the city) or with a view of a monument – are the most popular.
There’s still huge buyer demand for the best properties in Paris. This is a trend which started during the pandemic that hasn’t yet tapered and doesn’t look set to anytime soon.
Opportunities
Just as in other parts of the French prime market, there are rarely any true bargains to be had at the top of the Paris property market. There is no sign of any distressed sellers as prime and super-prime buyers in Paris haven’t ever needed to over-leverage themselves to buy high-end property.
Mortgage-holders can easily absorb rising interest rate environments. So while distressed sellers could be a reality in other parts of the French market, it’s something that’s seen very rarely at the top end of the Parisian property market. This means for buyers, there’s little point in waiting out the market for “the one”. The lack of stock also keeps prices high, which makes these properties a perfect investment.
Paris Property Hotspots
The 7th arrondissement was one of the most popular areas for international buyers in Paris in 2022. This will unquestionably continue into 2023 as demand for property in this area is exceptional at the moment. Not only has it long been a hotspot for domestic buyers but now the 7th arrondissement is also ‘on the map’ for international buyers. It’s a very beautiful area, getting all over Paris from the 7th is easy, there are great restaurants as well as shopping and it’s very safe. There is a lack of stock here, however. Many owners are French and tend to hold property in the family over generations. So while properties do come up, there is exceptional demand for them when they do, and often plenty of competition. This makes liquidity key.
Influx of American and Middle Eastern Buyers Brings Competition
The strength of the US dollar has positively impacted foreign investment into Parisian property. Since the summer of 2022 – typically a low period for French sales – there has been significant demand from American buyers and buyers who have US dollar wealth.
Demand from Middle Eastern buyers has been lower than what it was for about four years now. But a resurgence is beginning. Middle Eastern buyers tend to purchase in the 8th arrondissement and in the 16th arrondissement. Property with very spectacular entrances and expansive entertainment and reception rooms are the most popular with Middle Eastern buyers and these areas have exceptional properties which meet these needs perfectly.
How we can help
As well as representing buyers exclusively we have exclusive prime property for sale. If you would like to have a chat about the best approach to home ownership in Paris, please contact us.
