Falling real estate prices: Paris is attracting less, according to the MeilleursAgents - France Bleu website.

Paris has seen a decline in real estate prices, making it one of the cities in France with falling prices. The decline is 1.2% for the year, with an average price per square meter of about 10,000 euros. The specialized real estate website MeilleursAgents claims that this is due to the decreasing attractiveness of Paris. This could be good news for those planning to invest.

Paris is one of the few cities in France where real estate prices are down 1.2% year-over-year. According to Thomas Lefebvre, scientific director of MeilleursAgents, a specialized online real estate resource, this is mainly because Paris is less attractive to buyers compared to the past. This trend is not exactly new, but it has been amplified because of the COVID-19 pandemic. The drop in prices is also due to rising interest rates on mortgages.

Unlike other major French cities, real estate prices in Paris have already started to decline since 2021. After reaching a peak in 2020, when prices reached the €12,000 per square meter mark, they have fallen slightly. "In fact, we are witnessing a rebalancing of the market and prices," believes Thomas Lefebvre.

According to the specialist, this decline is due in part to the fact that Paris is less attractive to buyers compared to the past. "People are looking to move out of the city, they know they can get away from the big cities thanks to remote working" and "they are looking for better purchasing power". Buyers are now turning less to Paris, but rather to the outskirts and the greater circumference: 40% of those leaving the capital are going to the department of Haines-de-Seine, followed by Val-de-Marne and Saint-Saint-Denis. Indeed, in Ile-de-France, although real estate prices are falling in Paris and in the Val d'Oise department (-0.1%), prices continue to rise in other regions: +0.6% in Haines-de-Seine, +2% in Val-de-Marne or +1.3% in Saint-Saint-Denis, for example.

Rising mortgage interest rates mean that while real estate prices are generally falling in Paris, purchasing power is also declining. Mortgage interest rates have risen from 1% a year ago to more than 2.5% today. "Interest rates will continue to rise, perhaps to 3.5% by the end of the year, so purchasing power will continue to decline," explains Thomas Lefebvre. "Now is a good time to ask the question, 'is it worth waiting for more price declines at the risk of further interest rate rises?"

In any case, according to the specialist, many families, especially first-time buyers, will find it more difficult to purchase real estate due to the decrease in purchasing power.