Seventh most expensive city in the world and second European capital behind London, Paris has now become a must in real estate investment. 2018 was particularly positive for the Parisian market. The revenues generated increased by 17% and can be especially explained by an increase of the market prices and the very low mortgages rates. The purchase price per square meter in the capital will continue to increase in 2019, however the euphoria experienced by the Parisian real estate market in 2018 should start stabilizing, especially through the rise of the mortgages rates. But the luxury real estate market is still growing and is far from running out of steam with an expected increase of 5%.
Famous all around the world, the French capital is attracting more and more foreigners, especially through its prestigious image. For 2019, real estate experts anticipate a strong increase of buyers from the Middle East and the United States. As far as they are concerned, Russians and Asians are less attracted to invest in the French territory. Moreover, the consequences of the Brexit will still be effective during the year 2019, which means a lot of French expatriates will come back into the French capital.
The number of apartments sold has decreased in 2018 compared to 2017, however we can observe a reverse process on house acquisitions, especially when we include the greater Paris area, which includes the departments of Essonne, Yvelines, Seine-et-Marne and Val-d'Oise. The attractive loan conditions, even over long periods of time, have led some buyers to leave Paris to look for prestige property corresponding to different expectations and criteria. This evolution of the high-range real estate market is expected to continue in 2019 and can be observed on both new and existing properties. In the third quarter of 2018, the latter category has recorded a historic sales rate in the Paris area and is expected to increase further in 2019.
