A savings of nearly €30,000 for a 50 square meter property
The downturn is decidedly well underway in the Parisian real estate market. In one year, prices have dropped by 5.30%. The price per square meter hasn't yet fallen below the 10,000 euros average mark, but for how long?
This downward trend doesn't seem to be abating. Over the last 3 months, the decline is still at 1.2%. Demand is dwindling on a market that, only a few months ago, had more buyers than sellers.
At the beginning of this year, a 50m2 property still costs around 502,000€ in the capital. However, the same apartment would have cost about 530,000€ a year earlier. Given the values, the drop is therefore significant for buyers, who have regained a strong bargaining power.
Rents still on the rise
On the tenant side, the situation is somewhat different. Rents per square meter recorded an increase of 1.70% over the year, reaching €27.6 per square meter. For a 50m2 apartment, the budget would therefore be around €1380, or about €25 more than the previous year.
This increase can be partly explained by the rise in borrowing rates. An increasing number of households find themselves excluded from bank credit and therefore must opt for renting rather than buying. Notwithstanding, Paris has been losing its appeal for several years now. It is therefore possible that an increasing portion of its residents might be transient and prefer to buy elsewhere when the time comes.
For investors, potential gross rental yields stand at 3.30%, a figure slightly higher than that of the previous year. The market thus seems to regain interest for those considering a rental investment.
