Price growth and hotspots

In the 12 months to September 2019, property prices in the prime arrondissements grew by an average of 4.4%. This compares with growth of 6.1% across Paris as a whole. The rate of growth in the prime market has slowed as vendor price expectations have risen, while the average time a property spends on the market has increased from 43 to 54 days. As prices have risen, purchasers have become more cautious, while vendors are holding out for the best deal.

Domestic buyers accounted for 84% of all purchasers in the prime market during the first three quarters of 2019. International buyers, making up the remaining 16% of purchasers, are up slightly from the 15% share recorded in 2018. Buyers from the Middle East, the US and a range of European countries are all active.

The 10th was the city’s best-performing arrondissement in 2019, recording annual price growth of 9.7% in the 12 months to September 2019. Among the core prime arrondissements, the 6th saw the strongest growth over this period, with values increasing by 9.1%. The 2nd was the only arrondissement to see prices fall during this period, with a -1.0% change.

Mansion houses and turnkey apartments in demand

In a city characterised by apartments, mansion houses (*Hôtel Particulier) are a small but 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, around 30 in total.

Mansion houses are particularly desirable in central Paris, providing owners with outside space and their own front door. Most of the recent transactions have occurred in the 7th arrondissement, including a record sale close to €40,000 per sq m in the first half of 2019.

International buyers are driving demand for fully furnished, professionally managed apartments with concierge services. In response, developers are redeveloping buildings, or individual apartments, to match the high specification and amenities found in the prime residential segment of other top-tier world cities.

_{Note *A large and luxurious residence in an urban setting, with a courtyard and private garden}

The appeal of the western suburbs

Prime Paris is expanding, and the western suburbs have benefited as buyers seek more for their money. The considerable increase in prices in central Paris, along with improved infrastructure from the Grand Paris project, is helping to break down the barrier of the ring road. After Boulogne-Billancourt and Neuilly-sur-Seine, other municipalities renowned for their parks and quality of life, such as Saint-Cloud, Meudon, Sèvres, Versailles, Saint-Germain-en-Laye, Vaucresson and Ville-d’Avray, are becoming more popular with families looking for beautiful homes, gardens and wellbeing.

Traditionally, families kept an apartment in Paris and a second home in the countryside. However, a growing tendency to live in one place is driving more people to the western suburbs, commutable to the city centre, namely departments 92 (Hauts-de-Seine) and 78 (Yvelines). These areas also attract expat buyers thanks to their international schools.

In the 12 months to September 2019, department 92 saw price growth of 4.4%, while department 78 saw growth of 1.0%, although areas within the department located closer to Paris experienced higher growth. Both have also recorded a rise in transactions over €2m, up 24% and 9% respectively, compared to the same period in 2018.

_{Read the other articles within Report: Paris Prime Residential below}