Buyers in Paris are having to dig deeper into their pockets than ever, with properties now valued at an average of more than €9,000 for every square meter, a new report has revealed.
The latest LPI-Se Loger property barometer showed that in October, properties in 12 of the French capital's arrondissements cost €9,165 per square meter, marking a new record for the city's real estate market.
On top of that, all of the city's 20 arrondissements saw a rise in prices with an average annual increase of at least eight percent.
The barometer showed that prices increased most in the city's 18th arrondissement on Rue des Abbesses and Boulevard Ornano, in the 6th on Assas Street and Boulevard Raspail and in the 4th on Rue des Archives and Places des Vosges.
In April, a survey revealed that the average price of apartments in the city had seen a rise of 5.5 percent on the same month in 2016.
And it seems the trend is set to continue, with a huge number of buyers looking for their own slice of the French capital.
According to the industry, sales increased by seven percent in just one year in Paris and with the city set to host Olympics 2024 it's likely to continue this way for some time.
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In June, The Local reported that the increase in Paris property prices was changing the profile of homeowners in the French capital.
“Paris, with an average purchase price for an apartment of €446,982, has become an exclusive city, reserved for high earners (management and liberal professions), who now account for 46 percent of purchasers,” said Laurent Vimont from the Century 21 property agency.
“At the same time, the percentage of workers and employees buying apartments has halved, from 13.9 percent to 6.8 percent.”
According to analysis, there are a few reasons to blame for the steep rise in prices.
The election of Donald Trump, Britain's decision to leave the EU and Emmanuel Macron's election in France have apparently all played a role in boosting property prices in the French capital, according to Le Point.
Brits and Americans are apparently deciding now is the time to buy in the French capital and with the election of the pro-business Macron, who has vowed to kick-start France's economy, the stars appear to have aligned.
A recent survey of notaries in the capital concluded that Brexit was helping push Paris property prices to record levels.
And it's unlikely that the building of new houses will fill the demand and bring down prices. As of the end of June, only 465 new homes were on sale according to housing information agency ADIL 75.
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