August 3, 2021

Real estate: the Parisian market is weakening

For the first time in several years, real estate prices fell in 2020 in Paris. For some professionals, the pandemic is the source of this turnaround. For others, the Parisian market had stabilized at a high level and was starting to stagnate. The health crisis would therefore only have accelerated the situation.

Whatever the reasons for this situation, the market stalled at the start of 2021 and the Grand Paris notaries indicate that the volume of sales fell by 11% in one year in the capital and by 6% in all France’s Island.

Real estate prices in Paris have also decelerated. The latest notaries’ economic report thus indicates that they decreased by 1.1% between the end of 2020 and January 2021 and went from 10,850 euros per square meter in October and November 2020 to 10,650 euros in January 2021.

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The same goes for PriceHubble, a start-up specializing in real estate appraisal software, which indicates a drop in prices in the vast majority of districts. His study, based on the ads posted online, shows that the largest drop occurred in the 18e, with a fall of 4.35% between the second quarter of 2020 and the second quarter of 2021. Next comes the 11e, with a decline of 4.21%.

Same decline in the beautiful neighborhoods (-3.66% for the 15e, – 2.10% for the 6e or even – 2.14% in the 7e.) “In these districts, prices are at a high level: over 15,000 euros per square meter on average for the 6e and 7e », specifies Loeiz Bourdic, Managing Director of PriceHubble France.

Small surfaces more affected than large ones

The absence of tourists, who rented small furnished spaces, is also disrupting the market. “The occupancy of this type of housing is around 20% and owners who have gone into debt to buy them and cannot wait are forced to sell. In this case, it is possible to negotiate and lower the price ”says Gilles Parent, Managing Director of the Reunited Agencies. The studios were the most affected between the second quarter of 2020 and the second quarter of 2021 with a drop of 1.19%; their average price in Paris nevertheless remains at a high level: 12,465 euros per square meter.

Not all goods are affected. After a marked decrease at the beginning of the year of 3.62%, the prices of large family apartments, that is to say five-room apartments, are on the rise again with a gain of 4.11%. “The goods at the right price located in the beautiful districts, bright and with few defects, always leave very quickly. [Ceux situés] on the ground floor, a little dark or [ceux qui sont] obsolescence decreases particularly “, testifies Vithal Fhooblall, director of the Stéphane Plaza real estate agency at 17e borough. However, he notes that buyers are more aggressive and do not hesitate to negotiate prices.

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