Savills plc
Savills plc
04/30/2021 | Press release | Distributed by Public on 04/30/2021 02:12
The resilience of the Paris property market as buyers seek space
Prime residential property prices in Paris increased by 2 per cent on average in 2020. The prime market continued to show resilience, maintaining positive growth when many other cities saw price falls. By comparison, the Savills World Cities Prime Residential Index increased by an average of 0.5 per cent.
Prime values in Paris now stand just 8 per cent below those of prime London as of December 2020, compared with around 40 per cent below six years earlier.
Average prime values stand at €15,600 per sq m as of December 2020, 60 per cent below Hong Kong - the most expensive city in the world for prime residential property.
Now in 2021, there are signs that the impact of Covid-19 is starting to be felt in the wider market. In the near term, with international travel limited and ongoing uncertainty around the shape of economic recovery, prime prices are forecast to soften by between -1.9 per cent and <0 per cent during 2021.
In the longer term, however, the outlook remains robust. Since interest rates look likely to remain low, as they have been for several years, prime Paris property is especially attractive as a long-term store of wealth.
The pandemic has caused many to revaluate their property needs and, as in numerous cities around the world, this too is playing out in the Paris market. The search for more space, coupled with investment into transport infrastructure has boosted activity in Paris's outer arrondissements and suburbs.
In a year when all Parisians were spending more time at home, it is no coincidence that the strongest growth in 2020 was generally seen in the outer arrondissements where more space is on offer for better value. Seven of the top 10 arrondissements for price growth in 2020 were mainly north and eastern arrondissements.