PriceHubble just released its new study on property prices for Paris and the Ile de France region. Prices in the capital fell by 1.1% in the first quarter of 2021, and by 2% over one year.
PriceHubble analysed more than 90,000 offers for sale for the Paris region, published in the first quarter of 2021 on the main real estate portals, to identify the evolution of prices and volumes.
Prices: almost all arrondissements show a substantial fall
Among the 20 Parisian arrondissements, only the 8th (+0.7%) and the 18th (+1.4%) are in the green for the first quarter of 2021. For the others, on the other hand, the fall in prices per square meter is accelerating: the 13th (-4.6%), the 6th (-4%) and the 19th (-3.9%) are the three arrondissements where the fall is the most severe. Both the most "expensive" and the more "affordable" arrondissements are therefore affected by the downward trend.
If we compare median prices per square meter with the first quarter of 2020, a general decline of more than 2% is observed throughout the French capital. The biggest fall over one year is seen in the 11th arrondissement (-4.5%), followed by the6th (-4.4%) and the 8th (-3.5%). The sanitary crisis seems to have had its effect. Only the 12th remains in growth between Q1 2020 and Q1 2021 (+0.5%).
As analysed by Loeiz Bourdic, Director of PriceHubble France, "the first quarter of 2021 confirms the downward trend that began in the second half of 2020 in Paris. Sellers are returning to the market, with supply returning to pre-crisis levels. But between the loss of momentum in rental investment for small areas, and buyers who are less eager to buy family flats, the rise in prices within the city has been completely halted."
Ile-de-France: a contrasted situation between stabilisation and decline
On a regional scale, the Val-de-Marne is the only department to do well and to show a positive evolution of median prices in the first quarter (+1,4%). For the rest, some departments such as Essonne (-2.4%), Val d'Oise (-1.7%) or Seine-et-Marne (-1.5%) are strongly decreasing. The others on the other hand show a stabilisation, such as Hauts-de-Seine (+0.06%), Seine-Saint-Denis (-0.1%) or Yvelines (-0.5%).
Over a year, however, Paris is the only department to finish in the red (-2.1%). All the others remain in the green, even showing a very nice increase like Seine-et-Marne and Seine-Saint-Denis (+7.9%), or Val-de-Marne (+5.4%).
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