By creating a climate of uncertainty, the health crisis has made the analysis of the Paris real estate market complex. Yesterday's explanations and analysis of general figures no longer represent the reality of the market.
Households are now aware of the importance of their place of residence, which is indeed a necessity. They are much more careful in their purchasing decisions and carefully analyze the properties they visit as well as their geographical location, leading the market towards an irreversible rationalization.
When you know the specificities and multiple facets of the Parisian market, anticipating this rationalization based on general figures, as some media do, becomes inadequate. It should be understood as it is: a market with hundreds of micro-markets, villages and streets where there are significant price disparities and almost as many special cases as apartments (1.4 million!).
By taking these two factors into account, it is then possible to try to come up with a more appropriate answer to the question that everyone is asking.
YES, a certain category of properties is inevitably heading towards a price decrease. These are the properties that have benefited from the frenzy of the years 2017-2018-2019 and whose intrinsic qualities do not justify such amounts in terms of price per m2. The qualities to be retained are those that are immutable: the address, the floor, the exposure (view and luminosity) and the quality of the building (its year of construction and the materials used for it).
NO, do not expect a drop in prices for quality Parisian properties, i.e. those that meet the intrinsic qualities mentioned above: address, floor, exposure and building. Not only will they not fall, but their market price should rise as Parisian stone asserts its role as a safe haven in such a climate of uncertainty (article to come).
Finally, the evolution of the Parisian market will be at two speeds: the quality will increase, the overvalued will decrease. It is therefore essential to benefit from a good real estate expertise when making a decision to buy or sell a property.
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