The US subprime turmoil had severe consequences on the banking sector in many European countries but the crisis had no negative impact on the Paris real estate market until the end of 2007.
The Paris Notary Chamber published in a press conference its market report for 2007 and confirmed solid market figures.
The official average price for unoccupied old apartments in Paris rose by an impressing 10.5% between the 4th quarter 2007 and 2006. The average price per square meter in "Paris Intramuros" stood at 6,360 €/ US$ 10,145.3 during the 4th quarter 2007. In total 36,807 properties were sold in 2007.
The most expensive arrondissement once again was the 6th around "Saint Germain- des- Prés" and the "Luxembourg Garden". An average square meter here cost €9.790/ US$ 15,616.70.
It was followed by the 7th which is situated on the southern river bank between the "Musée d'Orsay" and the "Eiffel tower". Here the notaries calulated an increase of 12.9% p.a. and an average price of € 9,260/ US$ 14,771.3.
The ranking of the most affordable districts hasn't changed either. The least expensive is still the 19th district around "la Villette" where the average square meter cost € 5,050/ US$ 8055.61, followed by the adjacent 20th with € 5,340./US$ 8518.21
The market for houses is small in Paris and in 2007 only 228 units were sold. During the year 2007, only 367 buildings were sold and the number of transactions shrank by 21,6 %.
Since January 2008, however, the market appears to be slowing down.
On 17 April 2008, the "KHS Paris Market Report 2008" was presented at the American Chamber of Commerce "AmCham". It was based on the official numbers of the "Paris Notary Chamber" and you will find a summary of the conference on the "KHS Paris Real Estate Blog": ( please scroll down to 'A.NEWS- MARKET REPORT')
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