Prime property market in Paris recovering with prices up 5.8% in year to May 2017
The prime residential property market in Paris is recovering from several years of muted performance which have left prices in the city significantly lower than its global rivals.
A new political regime, historically low interest rates and building consumer confidence have helped the property market to turn with prices up by 5.8% in the year to May 2017, the latest research shows.
Indeed, prices in the 1st, 4th and 5th arrondissements have already exceeded their 2012 peak and this recovery is being driven by domestic demand, according to the latest analysis report from international real estate firm Savills.
Foreign buyers accounted for just 9% of the prime market in 2016 for sales above €1 million, and although this is down 14% from 2008, Savills expects overseas buyer numbers to grow in this sector. They already account for around half of buyers in the ultra-prime segment.
‘The new Government will bring clarity on legislation and a period of relative stability. This could encourage foreign buyers who have been waiting on the side lines to act,’ the report says.
It points out that the Macron Presidency is regarded as positive for the market and its pro-business stance could buoy economic growth while the Paris region benefits from a diverse economic base that generates 31% of France’s total GDP.