The decline in real estate prices continues in Paris

The market for existing residential properties in Greater Paris has seen a widespread decline in prices, for both apartments and houses, regardless of their size. 

This decline in prices is due to a wait-and-see attitude on the part of both sellers and buyers, against a backdrop of a 25% drop in sales in the Île-de-France region between 2022 and 2023.

According to figures presented by Elodie Frémont, chair of the real estate statistics committee of the Greater Paris Chamber of Notaries, annual declines in apartment prices range from -3.8% to -8.3% in the Île-de-France region, depending on the number of rooms and major geographic areas. This downward trend is evident across all types of apartments, but it is slightly more pronounced for smaller units (-7.4% for studios and -7.1% for two-room apartments in the Île-de-France region). In Paris, the decline is even more pronounced (-7.8% for studios and -7.2% for two-room apartments).
 

However, it is important to note that these price declines have not yet offset the increases from previous years. In fact, apartment prices have risen by another 5.1% in the Île-de-France region over the past five years (from December 2018 to December 2023). This increase is greater in the Greater Paris area (+8.8%) than in the Inner Paris area (+7.5%) and, above all, than in Paris itself (+2.1%).
 

The market for existing homes is no exception, with prices falling 6.8% in Île-de-France, 5.8% in the Petite Couronne, and 7.3% in the Grande Couronne between the fourth quarters of 2022 and 2023. As with apartments, the downward trend is widespread, but different patterns are observed in the Petite Couronne and Grande Couronne. In the Petite Couronne, prices for small homes have fallen only slightly (-2.4% for homes with three rooms or fewer), perhaps due to the limited size of this market or the potential for renovations offered by these properties (expansion or new construction). In contrast, prices for large homes with six rooms or more have fallen by more than 7%.
 

In the Greater Paris Area, trends are more consistent across the different types of homes. Larger homes have held up slightly better against the price decline (approximately -6.5%), but at the same time, sales of homes with six or more rooms fell by 31% between 2022 and 2023, compared with a 28% decline for all homes in the Île-de-France region.
 

Despite this decline, home prices in the Île-de-France region, as well as in the Petite Couronne and Grande Couronne areas, are still 10% higher than they were five years ago. The sharpest increases are seen in homes with six or more rooms.