- The downward trend in prices is confirmed and becoming more widespread
After several years of increases, average property prices are now on a downward trend, both in Paris and nationally. As of May1, over a sliding 12-month period, Parisian prices had fallen by 5.1%.
With inflation at 6% over the same period, this represents a real drop of 11%.
It should also be noted that 7 arrondissements in Paris have fallen back below the €10,000/m2 mark.
- Monthly sales volume down 15%.
o Numerous promises of sale that do not materialize
o Transaction times are getting longer: 60 days are needed to find a solvent buyer (compared with 40 days in 2020)
- Negotiation margins on the rise
o Buyers have regained the upper hand, and downward negotiations are now legion
o In the capital, negotiation now accounts for almost 2/3 of all transactions.
- Tensions persist over financing terms for acquisitions
o Loans difficult to obtain for many project developers
o Steady rise in lending rates and usury rates
o Lengthening time-to-market: clear wait-and-see attitude on the part of buyers
- These figures need to be qualified, as they conceal a great deal of heterogeneity:
o The Paris real estate market is unique, and the rarest apartments are still snapped up
o Paris is one of the most coveted cities for the wealthy
o Ultra-luxury prices have risen by 40% in the last two years, and there has been no downturn
o The intrinsic qualities of a property are valued and sought-after.
- To succeed in selling their property today, sellers need to be in touch with market realities (at the time of listing or at the end of sometimes lengthy and anxiety-provoking discussions).
- Rely on real estate professionals to determine the right price with a view to maximization. Today, there's no room for error. To "blow your property" in such a context is unthinkable.
- In-depth analysis to qualify buyers' profiles and the solvency of their financial situation
