Find out why now is the time to buy property in Paris! (credit)
It’s been an exciting year for our Paris Property Search team as we’ve helped many happy clients find their dream home in Paris. We’ve also launched @ParisPerfectBuyers on Instagram where we share more tips and ideas for buying and investing in property in Paris. We hope you’ll join us there!
We keep a very close watch on what’s happening in the Paris market, and we believe the Parisian housing price decline is very close to bottoming – if it hasn’t already reached its bottom. Paris apartment price have fallen 5.4% on average over the last 12 months. Many factors have driven this decline, the main one being lack of access to financing for French buyers due to rising interest rates and French banks greatly reducing lending. Right now, there’s an incredible window of opportunity to buy property in Paris and we don’t want you to miss it!
Above is a chart showing the price evolution of Paris apartments over 2023. The overall decline has been 5.4% in 2023. Importantly, Paris tends to be a stable, rising market – shown by the 19.7% overall increase in Paris apartment prices over the past 10 years.
What has changed?
The French financial authority (ACPR) have given a strong signal of market confidence by stating that they will return to a quarterly announcement of the maximum legal lending rate allowed for mortgages in France in January 2024. The ACPR was forced to change to a monthly announcement in January 2023 after repeatedly stalling the French lending markets by not increasing the maximum lending rate fast enough.
What does this mean?
We are close to, if not already at, the maximum interest rate increase in Europe that was implemented to stop inflation. As mortgage interest rates stabilize, French banks will begin to open up lending again, allowing French buyers to get back in the game. This means that in 2024 Paris real estate prices should stabilize and slowly start to rise and French real estate transactions should start to increase. For anyone considering buying a Paris apartment, this is a great time to jump into action and make your dream a reality.
Where to begin?
Paris Perfect would love to help you fulfill your dream of owning your own pied-à-terre in Paris. With no MLS (multiple listing service) in France and over 3,500 independent agencies, it is extremely difficult to actually access what is available on the market. The best apartments can sell within minutes or hours. We know this from our many years of experience finding, remodeling and managing over 60 apartments for buyers. It is virtually impossible to find the perfect apartment unless someone is on the ground and can jump on the hottest listings immediately. That’s where we come in! We formed our own property search services arm with experts we know and trust. We share some of our key buying tips here.
Contact us at [email protected] today to connect with Paris Perfect Buyers, our in-house Paris buyer’s agent, French mortgage and insurance brokerage. Get in touch and we’ll send you our two part Paris Property Guide – with tips, facts and details on how to make your dream of living in Paris come true. We’re a friendly and helpful team of experts whose sole interest is helping each client find their perfect property fit in Paris.
