Real estate market: the gap is widening between Paris and the suburbs, News

Real estate market: the gap is widening between Paris and the suburbs, News
Real estate market: the gap is widening between Paris and the suburbs, News

Paris is no longer the locomotive of the Île-de-France real estate market. More than a year after the first strict confinemente, the trend towards more space and greenery is still very present among buyers. In the capital, the market is slowly bogged down, while sales and prices remain strong on the other side of the ring road.

Fall in sales and prices in the capital

« With 40,950 old homes sold from March to May 2021, real estate activity in Ile-de-France is close to that of 2019 (41,250 sales) and obviously up sharply (+ 47%) compared to March-May 2020 when the housing market. real estate had suddenly stopped », Commented the notaries of Greater Paris in their latest report. For comparison, there were 224% more sales in April 2021, compared to April 2020! This shows the impact that the first confinement had on the market …

The big winner is not Paris, but the suburbs and in particular the greater crown. ” Compared to 2019, sales volumes for the period March-May 2021 are down 4 to 5% in Paris and the inner suburbs while they are up 4% in the outer suburbs », Detail the notaries in their last note of conjuncture. Unsurprisingly, this slump in the capital is causing prices to stagnate: 10.590 euros, the average square meter lost 0.2% over a rolling year (May 2020 to May 2021). In view of the sales promises signed in June and July, the notaries predict a slight price inflation this summer (+ 1.1%), but still stability over twelve months (-0,4% September to September).

Success confirmed for the suburbs

In the inner suburbs, the drop in sales should be put into perspective, because it is mainly due to the lack of goods for sale, in particular the house, the type of housing now the most sought after. Moreover, the prices of pavilions are up 5.6% over one year, while those for apartments have increased by 4.5%.

The greater crown stands out clearly, both in terms of strong demand from buyers and in terms of prices. It is the only “sector” where volumes are up compared to 2019! Above all, the notaries foresee a surge in the prices of the houses of 7,7% next September, over a rolling year (+ 6.5% for apartments). All the departments are valued, in particular the Val-d’Oise (+ 8.6%).

Evolution of house prices in Île-de-France.
Evolution of house prices in Île-de-France. | Photo credits: Notaries of Greater Paris
 
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