Activity has been buoyed by record-low interest rates and competitive asking prices. Transactions across the whole market are up 23% in the year to May 2017. The prospect of interest rate rises has encouraged buyers to close deals and stock levels have fallen.
In the first quarter of 2017, prices stood at €8,450psm across the whole market. Leading indicators from the Notaires suggest prices reached €8,800psm in July 2017, representing an annual price growth of 7%. In the prime market, prices have grown from a 2014 low, averaging between €12,000 and €17,000psm (depending on the area and the quality of the renovation). Exceptional properties are trading for between €20,000 and €30,000psm. Values in the 1st, 4th and 5th arrondissements have already exceeded their 2012 peak.