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PROPERTY

Have Paris property prices smashed the €10k per square metre barrier?

Paris property prices have broken through the 'glass ceiling' to reach an average of €10,000 per square metre, according to one estate agency.

Have Paris property prices smashed the €10k per square metre barrier?
Paris property prices have risen eight per cent in just a year. Photo: AFP

The cost of buying a property in the French capital has risen sharply in recent years, reaching a record high at the end of 2018.

But now prices have jumped again and leaped over the symbolic €10,000 per square metre barrier, according to estate agency chain Century 21.

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The average cost per square metre in Paris has now hit €10,000, claims one agency. Photo: AFP

The agency claims that the average price to buy a property in Paris is now €10,005 per square metre – an eight per cent increase on last year.

The official figures were slightly lower, with the Chamber of Notaries of Greater Paris putting the average figure for January at €9,610 and predicting that the €10k barrier is likely to be smashed in the summer.

Century 21 said that its figures were based on sale prices, whereas the Chamber of Notaries take their data from contracts signed.

Either way, it doesn't look like there will be many bargains to be snapped up on the Paris property market any time soon.

Over the previous 10 years, the price of buying in Paris has risen by 62.5 per cent.

The €10,000 average masks a huge variation in prices, with properties in the greater Ile-de-France region coming in at just over half the cost of central Paris properties.

According to official figures covering the year of 2018, the cheapest area to buy in Paris is La Chapelle in the 18th arrondissement at €7,460 per square metre, while the most expensive is Odeon in the 6th arrondissement at an incredible €17,410 per metre.

Perhaps unsurprisingly at those prices, there has been a fall in the number of people buying properties – 2.6 per cent fewer contracts were signed in the first quarter of 2019, compared to the same period in 2018. 

The shortage of new housing in Paris has been blamed for the rise, although some say that Brexit is also a factor as wealthy individuals seek an alternative base to London.

In February a Paris record was broken with the purchase of an apartment in the 7th arrondissement for €39 million.

The buyer of the 16-room, 1,000 square-metre flat was described as a wealthy individual who wanted to leave the UK because of the uncertainty caused by Brexit. 

Have you bought a property in Paris? Is it really that expensive or are there bargains to be found? Let us know your experiences in the comment box below.

 

 

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SECOND HOMES

Tax hikes of up to 60% for French second home owners

Towns and villages through France are raising property tax rates for second-home owners, with many areas voting for the maximum 60 percent increase.

Tax hikes of up to 60% for French second home owners

Even though France’s taxe d’habitation (householders’ tax) is in the process of being phased out for most French residents, second-home owners are still required to pay it.

This year more towns have voted to increase it, and others have recently gained the ability to add a surcharge for second-home owners, with French daily Le Parisien reporting that the residence tax “continues to soar.” 

Municipalities in zones tendues (areas with a housing shortage) have the ability to choose to increase taxe d’habitation by up to 60 percent for second home owners.

From 2023, several new areas – including Nantes – will join the list of zones tendues, meaning they will be able to vote to increase taxes for second-home owners.

This year, large cities such as Bordeaux, Lyon, Biarritz, Arles and Saint-Jean-de-Luz saw their city councils vote to increase the tax at the maximum 60 percent.

READ MORE: Why some French cities are increasing taxes for second-home owners

Some areas have still not chosen to apply the increase, but those looking to buy a second home in France should beware that these municipalities could vote to increase the taxe d’habitation in the future.

In 2020, cities on average voted to increase the residence tax on second homes by 248.50, in comparison to €217 in 2017. This year, that amount is expected to be even higher.

On top of the taxe d’habitation, second-home owners also have to pay the separate taxe foncière property tax, which is itself rising sharply in many areas.

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