Prime residential values in Paris rose by 6.4 per cent in 2019, compared with 4.5 per cent during the previous year.

The city’s residential market is currently benefiting from an alignment of factors that have driven domestic demand and boosted its global appeal. Domestic reforms under President Macron, low interest rates and a stable economy are some of the factors fuelling growth.

The Savills World Cities Prime Residential Index remained flat in 2019, with a combined value growth of 0.1 per cent, the slowest value recorded since 2009. Paris, however, is bucking the trend. Price growth was second only to Berlin, as a combination of low supply and growing demand from domestic and international buyers pushed up prices in both cities.

Prices have risen at a time when the prime residential markets in other world cities have stalled or recorded minimal growth. Concentrated within the capital’s historic centre, prime property in Paris is viewed as a safe, long-term store of wealth and, to international buyers, values are attractive by global standards.

In spite of this recent price growth, prime property in Paris offers value on a global stage. Property in Paris is, on average, just over €15,000 per sq m. This is 66 per cent lower than in Hong Kong (the most expensive city in the world for residential property at €45,000 per sq m), 37 per cent lower than New York (€24,000 per sq m) and 17 per cent lower than in London (€19,000 per sq m).

The up-and-coming 10th arrondissment, pictured above, was the city’s best performing in 2019, recording an annual price growth of 9.7 per cent in the 12 months to September 2019. The area is undergoing regeneration and is close to the transport hubs of Gare du Nord and Gare de l’Est. Prices here average €9,700 per sq m.

The second highest was the 6th arrondissment which saw values raise by 9.1 per cent. Some of the most prestigious properties can be found here and values average €14,200 per sq m.

In a city characterised by apartments, mansion houses (hôtels particuliers) are a small yet increasingly in-demand part of the market. In the past four years, more than double the number of mansion house transactions were recorded than during the previous decade, with around 30 changing hands in total. Providing owners with outside space and their own front door, they are particularly sought after in the city centre.

There has also been a shift to fully-furnished, professionally managed apartments with concierge services. International buyers are driving this demand and developers are refurbishing buildings or individual apartments to match the high specification and amenities of buildings found in other top-tier world cities.

As prime Paris expands and prices rise, the western suburbs have benefited as buyers seek more value and space for their money. The improving infrastructure from the Grand Paris project is helping to break down the barrier of the ring road that surrounds the city. Areas such as Neuilly-sur-Seine, Saint-Cloud and Versailles, are becoming more popular with families looking for a home that is commutable to the city centre.

Further information

Read more: Savills World Cities Prime Residential Index

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