Paris Real Estate Market Shows Signs of Stabilization
Average property prices in Paris decline but show signs of stabilization as buyer power increases amid changing mortgage rates.
As of early 2025, the Paris real estate market exhibits contrasting trends over different time frames.
Recent data from the Notaires du Grand Paris indicates that, while property investors who entered the market a decade ago have seen positive returns, those who invested in the past five years may not share the same fortune.
This variability highlights the significance of location, with the 18th and 19th arrondissements facing more severe price declines compared to more affluent neighborhoods.
By the end of 2024, the average price per square meter in Paris reached €9,370, marking a 3% decrease from the previous year.
However, current indicators suggest that prices are stabilizing, particularly in the Île-de-France region, where the average price per square meter recovered to €6,070 after experiencing similar declines.
Notaries report a gradual easing of downward pressure on prices throughout 2024, noting that the annual decrease in apartment prices diminished from 7.9% in the first quarter to 2.9% by the fourth quarter.
The recent reduction in mortgage interest rates has enhanced buyer purchasing power, yet upcoming changes to transaction fees—specifically a 0.5 percentage point increase in notary fees and taxes starting April 1, 2025—may influence buyer considerations.
Experts recommend that prospective buyers approach real estate purchases with a long-term investment perspective, emphasizing the importance of careful evaluation in the current market context.
Overall, while property prices appear to have stabilized in Paris, fluctuations remain, with distinct trends observed across various districts.