Paris Has The Best Property Prices In France

Whilst other areas of France might have seen property prices fall over the last few years, the country’s capital, Paris, is seeing booming property prices.  Residential values in the city rise by almost 18 per cent in 2010 according to new data, compared to just 1 per cent in London.

Paris property prices in the up

Bloomberg reports that ‘Paris property broker Kerstin Bachmann warned clients two years ago that the global financial crisis would trigger a slump in home prices. Last year, they rose at the fastest pace since at least 1991.’

Recent data from the Paris Chamber of Notaries found that property prices in Paris increase by nearly 18 per cent in 2010 after a 4 per cent decrease in 2009 – based on prices per square metre.

Bachmann, a partner at Paris Property Group, which handled 25 deals last year worth 40 million euros said: “All that happened was a small dip.  Paris proved itself even more as a safe and sustainable investment option [after the financial crisis].”

Investors sinking more money into Paris property

Government economist Jacques Friggitt found that prices in Paris are rising by their fastest rate relative to disposable incomes since the First World War even though transactions in 2010 were down 9 per cent on their ten year average.

Premiums for property in major cities have been a common feature of real estate markets in major cities over recent years, and Paris is no exception.  Bloomberg reports that ‘real estate values in Paris, France’s administrative, financial and political centre, have become disconnected from the rest of France.’

The same situation has been happening in cities such as London and New York where property prices have performed better than other parts of the country.

 According to the national residential real estate broker’s lobby in France, the FNAIM, Paris property prices have risen 40 per cent since 2005, while values across the rest of France are little changed in the same period.