(Partner Article) In the market of Paris real estatethere is a real difference in price per square meter between the various boroughs. Indeed, the capital includes bourgeois neighborhoods, where the square meter can reach 13.190 €, and more popular neighborhoods where it is estimated at 9.724 € on average. The location of the property is an important decision in a buyer's investment project.
The most expensive districts of Paris
The districts of the center of the capital (1st, 2nd, 3rd, 4th, 5th, 6th, 7th and 8th) are the most expensive. The price per square meter in these neighborhoods is well over € 10,000.
In some streets of the 7th arrondissement, such as the rue de Bellechasse, or the Charles Floquet Avenue along the Champs de Mars and the Eiffel Tower, the square meter can reach 20,000 €. On the prestigious Avenue Montaigne, the average square meter price is around € 17,300.
The purchase of a 40 m2 apartment in one of these neighborhoods would cost between € 440,000 and € 530,000. For a rental investment, we consider that the center of Paris is not the best choice. First, because the purchase price is much higher than in other neighborhoods. Also, the rent does not follow this same gap: the average rent per square meter in these expensive neighborhoods of Paris fluctuates around 31 €. In less bourgeois neighborhoods, such as the 11th for example, the average rent per square meter is € 28, or € 27.3 in the 17th.
However, changes in prices from one borough to another have reduced the price gap per square meter. But this is not the case for the 8th arrondissement, which has seen its value decline over the past five years.
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The most profitable districts of Paris
In contrast to the most expensive neighborhoods, part of the 18th, 19th and 20th arrondissements of the capital are considered to be more popular districts at low prices.
Indeed, in these areas, the average price per m2 does not exceed 10,000 €. This varies between € 7,918 and € 8,900 per square meter. An apartment of 40 m2 would require a budget of 336,000 € on average, or 100,000 or even 200,000 € less than in the center of Paris.
The purchase price and the rent which is around 25 € per m2 are interesting conditions in terms of profitability in the context of a rental investment. This price level ensures a better rental frequency. In addition, the evolution of the prices of the sector is an advantageous element in the case of a resale.
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The profitable neighborhoods at average prices in Paris
The 9th, 10th, 11th, 12th, 13th, 14th, 15th, 16th, 17th and part of the 18th arrondissement are categorized as profitable boroughs at average prices. These vary between € 8,300 and € 10,400 per square meter.
So, for an apartment of 40 m2, it would take about 380,000 €.
These districts of Paris see a positive price evolution, including 3.3% for the 9th arrondissement, 5.4% for the 15th, and 4.5% for the 17th. On top of that, these corners of the City of Light are vibrant; from a real estate perspective, they represent a balance between location, quality of life and profitability.
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With which surface to make a rental investment in Paris?
When we talk aboutrental investment, rather small or medium surfaces are often preferred. Studios or 2 rooms, with an area of 20 m2 to 40 m2 have a better rental frequency.
Paris seduces mainly students and young workers. In five years, the number of students has increased by 225,000 in the capital. This young and dynamic population can not usually pay rents. They prefer studios or two rooms for young couples who have a larger budget.
Then, as part of a rental investment, it is advisable to acquire a property that can meet the needs of this young population.
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Parisian projects in 2019
Many projects, with larger or smaller sizes, take place this year in the capital. For example, the development of Place de la Madeleine and Place de la Bastille, or the inauguration of Serres d'Auteuil.
The attractiveness of Paris is really reflected on the price evolution of its real estate. The third quarter of 2018 saw a greater acceleration of prices. The 1st, 19th and 20th districts saw an increase of 11.2%, 10.7% and 8.3% respectively. The 7th, 15th and 13th saw their price rise by less than 4%.
This is the first time that the average price per square meter exceeds € 7,000 in all the boroughs of the city.
The capital of France is a safe and profitable value for a real estate investment. The dynamic demand, the yield and the added value for the resale make this market attractive, and create a very advantageous real estate tension.
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