EPIC Immigration & Investment
PROPERTY IN FRANCE
France's housing market remains strong, with the highest price rises in a decade. In Metropolitan France, house prices rose by a robust 5.85% during the year to Q2 2021 (4.41% inflation-adjusted), following y-o-y growth of 5.86% in Q1, 6.4% in Q4 2020, 5.21% in Q3 and 5.64% in Q2, according to the National Institute for Statistical and Economic Studies (INSEE).
In Petite Couronne ,apartment prices increased 4.5% y-o-y to €5390 per sq. m. It is the best region with the highest appreciation district. Followed by Hauts-de-Seine ( increased 4.3% t0 €6590 (US$ 3,758) per sq. m.), then Grande Couronne ( increased 4.1% t0 €3,290 (US$ 3,758) per sq. m.). In Île-de-France, the country's wealthiest and most populated region, the average apartment price rose by 2.1% y-o-y to €6,710 (US$ 7,665) per sq. m., according to the La Chambre des Notaires de Par
In Paris, house prices even declined slightly – it seems the capital's high cost of living is prompting some rural relocations. The average price of existing apartments in the capital city fell by 0.2% (-1.5% inflation-adjusted) to €10,650 (US$ 12,166) per square metre (sq. m.) during the year to Q2 2021, according to the La Chambre des Notaires de Paris. In a recent study conducted by the University of Paris and King's College London, almost half of Parisians think that the city is too expensive and 43% believe that they could find a better quality of life elsewhere. The pandemic has clearly been pushing people away from cities towards greener areas.
The good news is that if you have an apartment in Paris you will have no trouble letting it. Demand outstrips supply, the main reason that rents are not higher being that French rental contracts are often long-term and there are legal restrictions on raising rents during the contract.
However gross rental yields from apartments in Paris are poor, at around 4.2% for small apartments and 3.9% for big apartments (however it is fair to say that our Paris yields results arguably may not reflect yields in less desirable locations, which are likely to be higher, because our sample focuses on Paris' high-end city centre).
The price of a 120 sq. m. apartment in these locations is around EUR 970 per sq. m., or EUR 90.1 per sq. ft. This year, we did not find a big price-difference between smaller and larger apartments.
The good news is that if you have an apartment in Paris you will have no trouble letting it. Demand outstrips supply, the main reason that rents are not higher being that French rental contracts are often long-term and there are legal restrictions on raising rents during the contract.
