France

Paris property prices fall

St.Germain des Prés in Paris
St.Germain des Prés in Paris Wikipedia/Jorge Royan

Paris property prices are set to fall below 8,000 euros per square metre for the first time since 2011, professionals predicted on Thursday. They have fallen nearly 2.0 per cent in a year.

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Property prices in the French capital will drop to under 8,000 euros per square metre in the first quarter of 2015, according to solicitors who handle property sales.

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"But it might only be temporary ," commented Parisian notary Thierry Delesalle.

In one year Paris prices have fallen 1.9 per cent and property transaction volumes decreased to 7,990 sales, despite some tax incentives supposed to encourage the sale of second homes.

The fall follows several years of soaring property values. 

In 2011 they increased 22.5 per cent and in 2012 the average price per square metre reached 8,440 euros.

The fall in prices has not affected all districts equally.

Propert in all the city's central arrondissements (1st, 4th, 5th, 6th, 7th) sell for more than 10,000 euros per square metre, although they have dropped in price.

In the 18th and 19th arrondissements prices may fall below 6,300 euros per square metre.

Meanwhile some "prestige" apartments still fetch record sums. 

A 162-square-metre apartment near the swish Champs Elysées avenue recently sold for 31,790 euros per square metre.

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