Are you an international buyer, thinking of purchasing a Paris property in 2018 with Agence Varenne? If so, you might be interested to know what’s the state of the Paris property market at present, and how the market looks set to perform in 2018. With this in mind, keep reading to learn about recent trends in Paris property, including local taxes and interest rates, for this year!
To start with, Paris property prices have been steadily rising in recent years. In particular, prices have continued to climb since Summer 2015, supported by low interest rates, business-friendly president Emmanuel Macron’s electoral victory, plus Brexit making Paris a more favourable alternative to London. For instance, since 2009, Paris apartment prices have risen by a solid +45%.
To be more specific, between July and September last year, property prices in the greater Paris area jumped +4.8% compared to Q3 2016, according to INSEE, the French National Institute of Statistics & Economic Studies. This is mostly thanks to rising apartment prices, with flats changing hands for +7.8% more in Q3 last year, compared to the same 3 month period the year before.
What’s more, the price per square metre for Paris property recently passed the symbolic €9,000 mark. According to LPI-Se Loger property barometer, in October 2017 the price per square metre for Paris property reached €9,165, its all-time high. Moreover, prices jumped in all 20 of Paris’s arrondissements, with an annual gain of at least 8%. So Paris’s property market is very buoyant!
Paris property market to stay buoyant, thanks to low interest rates
Furthermore, looking to 2018, Paris’s property market looks set to remain buoyant. This is because, first, interest rates look set to stay at all-time lows. For example, according to recent Credit – Banque de France data, the average interest rate on a long-term home loan is just +1.64% at present, and looks set to rise just +0.2% this year. This makes Paris property far more affordable!
In addition, the Paris property market could also remain robust, because Paris’s town hall has promised to keep local property taxes low in 2017/18. To be specific, Anne Hidalgo’s local administration will keep Paris property taxes between just 0.1%-0.3% this year, for the 6th year. This is among the lowest local property taxes in the world, so boosting Paris’s property market!
Paris property market to outshine international rivals like London in 2018
Elsewhere meanwhile, it’s forecast that Paris’s property market will outshine major international rivals in 2018, including London, Berlin and Hong Kong. This is because, first, the UK’s vote for Brexit has led international investors to consider Paris a more reliable base than London. This is also because Paris will hold the 2024 Olympics, thus driving investment inflows to France’s capital!
With all this in mind, Paris’s property market has been robust in recent years, thanks to the European Central Bank’s decision to keep interest rates at all-time lows of 0.0%, and France’s growing international stature, with President Emmanuel Macron’s victory. Looking to 2018, with Brexit on the horizon, plus the 2024 Olympic Games, Paris’s property market could well continue to shine!