Prices of second-hand housing in Paris start to fall, after another increase in 2020

In the capital, "prices took a break from the 3rd to the 4th quarter of 2020, going from 10.790 EUR per m² to 10.770 EUR", according to the Chambre des notaires du Grand Paris.

"After a historic record in November 2020 (10.850 EUR per m²) followed by a decline, the downward trend in prices should continue in the coming months in Paris. The annual increase could be less than 1%, which is not arrived since 2015 ", adds the organization in a press release.

"Today, the tension [on prices] decreases" but "when the goods are at market price, sales are made without negotiation", commented during a press conference Thierry Delesalle, the president of the House Statistics Committee.

The "braking, initiated in Paris, is taking shape and is gradually spreading to the near periphery", according to the Chamber.

Overall, according to the notaries, many elements describe in Ile-de-France "a market which resists, given a particularly difficult economic, psychological and social context, but which is running out of steam and weakening".

Thus in Paris "prices, which were still increasing by 8% per year in the 1st quarter of 2020, by 7,8% in the 2nd quarter and then by 7% in the 3rd quarter, were only an annual increase of 5,4%. in the 4th quarter of 2020 ", according to the professional organization.

According to leading indicators on pre-contracts, in Paris, "the slightly bearish movement would continue in early 2021 to leave a price per square meter expected at 10.600 EUR in April 2021, down 0,4% in 3 months" .

It would therefore be almost identical (+ 0,8%) to the value of April 2020 (10.520 EUR per m²), according to the same source.

The Great Crown attracts

In the fourth quarter, the prices per m² ranged between 9.210 EUR in the 14.240th arrondissement and 1,55 EUR in the XNUMXth, that is to say "XNUMX times more expensive than the XNUMXth" which is a "historical ratio. low ", according to the notaries.

In the 4th quarter of 2000, the most expensive district was five times more expensive than the most affordable district, point out the Chambre des notaires.

Four districts are still below 10.000 EUR per m² (12.000th, 14.000th, XNUMXth and XNUMXth centuries), while four exceed XNUMX EUR per m² (Paris Center, XNUMXth, XNUMXth and XNUMXth centuries). The XNUMXth arrondissement is the only one to exceed XNUMX EUR per m².

As a result of the Covid-19 epidemic and travel restrictions, the number of non-resident foreign buyers, usually very present in the high-end real estate market, has never been so low, with 1,8 % of sales versus 2,5 to 3% usually.

For 2021, the notaries remain cautious, because the year will be "the result, complex and uncertain, of an economic context which could harden for households and of a still very fragile health situation".

In addition, the health situation, confinements and the development of teleworking seem to precipitate life choices for some by pushing many Parisians out of the capital.

The housing market in Ile-de-France "has indeed benefited from increased attractiveness with an 8% growth in sales volumes, solely attributable to the Greater Crown (+ 13%), where the supply is plentiful and the prices more moderate ".

The notaries of the Grande Couronne indicate that they encounter more buyers in Paris and in the Petite Couronne than in the past, interested in large houses.