Although prices have slightly decreased over the last few months in the French Capital, it is more a symbol than a real downturn; it is indeed a 1% slow down and the quarter to quarter difference remains positive, amounting to 2.6%. As a result, one square meter now costs € 6,283 while it was worth € 6,362 during the second quarter 2008.
We can consequently still refer to Paris as one of the most secure property market in the world. The city still ranks European leader in terms of security of investment indeed and is still known for being a global access point for European property investment. The Parisian market is still marked by a relatively rare offer in the most sought-after areas. What may explain the fact that the credit crunch did not hit Paris as violently as London, for example is its greater sectorial diversity.
However, the tendency is not the same in central Paris as in the suburbs. Since 2007, the property market in Paris has been a two-tier system indeed. Last April, the suburbs were lacking of buyers whereas prices in the centre increased.
In July this year, the 6th arrondissement (district) of Paris was the most expensive one, with prices amounting to € 9,790/ m2 and with a 14.4% quarter to quarter increase. Five months later, this area remains the most expensive and prices have even increased, on the contrary to the whole capital tendency. Property prices now reach more than € 10,000/ m2. As a consequence, good quality properties, with no refurbishment work can be bought for between € 12,000 and € 13,000 in the area.
The cheapest Arrondissement remains the 19th with € 5,050/m2 (half the 16th arrondissement prices!) and the one who had the weakest quarter increase is the 18th Arrondissement with a 6.5% increase and a € 5,450/sqm.
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