Paris Property Price Growth Breaks 20y Record
14 September 2011
After Knight Frank found prices in Paris rising faster than any other leading city in its first Prime Global Cities index earlier this year growth in the city of romance did not stop. According to new data from the French society of notaries property prices in Paris and the Ile-de-France region have grown by 22.5% in the last 12 months. This is slightly more than the 22.5% recorded by Knight Frank in Paris in the 12 months ending March 11, and the largest rise in house prices recorded by the body in 20 years.
However there are signs that the market is peaking according to the body; signs welcomed by the market given fears that the market is bubbling. According to the report, preliminary sale agreements indicate a decline in sales in August and September. This will lead to a decline in prices in October according to the body.
According to portal MeilleursAgents.com prices are already falling in the Ile-de-France region.
"Prices should gradually decline 5% to 15% for ordinary and poor quality assets and stabilise at a high level for higher quality or well situated assets," says MeilleursAgents president Sébastien de Lafond.
Just how high prices have gotten is clearly evident in Paris' cheapest district, the 9th arrondissement on the northeastern edge of the city where property is currently priced at €6 350 per sqm on average. Also in the most expensive 6th arrondissement on the chic left bank where property costs €11,690 per sqm on average.