Ile-de-France Real Estate Market Shows Signs of Recovery Amid Price Increases
Transaction activity increases as buyers rush to finalize deals before upcoming tax hikes.
The Ile-de-France real estate market has experienced a revival in early 2025, building on positive momentum observed at the end of the previous year.
Average mortgage rates fell to 3.03% in March, encouraging households to enter the property market.
Notaries in the Greater Paris area reported annual decreases in monthly payments, with apartments down 7.4% and houses down 9.6%.
Financial institutions have also resumed offering bridge loans to buyers.
Elodie Frémont, spokesperson for the Greater Paris notaries, expressed cautious optimism regarding the market's recovery, citing a 21% increase in transactions compared to the first quarter of 2024. This surge follows three consecutive years of declining activity, signaling a potential turnaround driven by lower mortgage rates and property prices.
In addition to these factors, an impending increase in property transfer taxes, commonly known as 'notary fees', authorized by the latest finance law effective April 1, prompted many buyers to expedite their purchasing decisions to avoid loss of purchasing power.
The attractiveness of Paris continues to draw the attention of wealthy investors, with a recent study highlighting that it has become the most preferred European city for purchasing second homes or relocating.
Since the pandemic, luxury real estate prices in Paris have risen by 12%.
This ongoing demand maintains the city's reputation as a desirable investment hub, particularly marked by the global attention during the Olympic Games held nearly a year ago.
Average mortgage rates fell to 3.03% in March, encouraging households to enter the property market.
Notaries in the Greater Paris area reported annual decreases in monthly payments, with apartments down 7.4% and houses down 9.6%.
Financial institutions have also resumed offering bridge loans to buyers.
Elodie Frémont, spokesperson for the Greater Paris notaries, expressed cautious optimism regarding the market's recovery, citing a 21% increase in transactions compared to the first quarter of 2024. This surge follows three consecutive years of declining activity, signaling a potential turnaround driven by lower mortgage rates and property prices.
In addition to these factors, an impending increase in property transfer taxes, commonly known as 'notary fees', authorized by the latest finance law effective April 1, prompted many buyers to expedite their purchasing decisions to avoid loss of purchasing power.
The attractiveness of Paris continues to draw the attention of wealthy investors, with a recent study highlighting that it has become the most preferred European city for purchasing second homes or relocating.
Since the pandemic, luxury real estate prices in Paris have risen by 12%.
This ongoing demand maintains the city's reputation as a desirable investment hub, particularly marked by the global attention during the Olympic Games held nearly a year ago.
