France’s capital continues to see a fall in property prices as the average cost per m2 stands at 11,079 euros according to stats released by BFM Immo.
This marks a continued decline in property prices since the summer as Paris like other major European capitals including London and Edinburgh see sharp falls in advertised prices, and completed sales. However this is not the case for Monaco, which has bucked the trend with a modest acceleration of property sales in Monte-Carlo and prices moving in the other direction.
As Europe is gripped with higher for longer interest rates, the ongoing squeeze on families and first-time buyers excluding high net worth individuals has hit the property market, with falls expected to continue well into the new year.
Rental prices in the capital have also started falling with the average cost of a studio apartment just over €900 per month, and €2100 for a 3-room apartment.
According to the latest data from INSEE, 2,145,906 people lived in the capital, compared with 2,220,445 in 2014. The exodus from the city is a concern as it means lower tax revenues for the city that is seeing economic activity begin to stagnate.
One notable metric is the number of primary residences in the capital, which is falling (1,131,610 in 2020 vs 1,159,952 in 2009). This is dwarfed by second homes, which has been steadily rising from 87,364 in 2009 to 134,211 in 2023.
Property agency Century 21, which had already detected a fall in prices in the 2nd quarter, saw a 4.1% fall over one year for flats and a 2% fall for houses. The same applies to Laforêt, which recorded a 3.1% fall in prices per square metre, and Orpi, for which prices since the start of the year have fallen by 2%.