Property prices in Paris going through the ceiling

According to a study by the Notary's Association of Paris and the surrounding region, property prices in Paris have reached their highest ever level and increased by 7.8% over the past 12 months.

Now, the average cost of a 50-square meter apartment in the French capital is around 334.000 euros. As analysts say, the rise is caused by a lack of properties for sale.

It is worth noting that the previous record, 6,620 euros per square meter was set in the last quarter of 2008. By the way, Christian Lefebre, President of the Association, predicts that prices should keep rising through the end of the year as demand continues to outstrip supply. What is more, he says prices should increase by 10% this year. Prices vary throughout the capital, with the sixth district claiming the prize for the most expensive arrondissement (9,900 euros per square meter on average). It is closely followed by the seventh and the fourth districts with 9,730 euros per square meter and 9,560 euros per square meter respectively. Noteworthy, the cheapest properties are located int the nineteenth district. On average, a 50 square meter apartment there costs around 267,000 euros.

According to the National Statistics Institute (INSEE), the cost of apartments across France has risen in overall by 6%. House prices have increased by 5.8%. However, Christian Lefebre predicts that the rise may not continue. As he said in an interview with Le Parisien, interest rates on property loans, which are at an record low, are expected to increase in the medium term and will lead to lower demand for properties. "I don't think we are looking at the same situation we had at the end of the 1980s when there were plenty of properties for sale," he said. "This is the housing market catching up after a drop in prices in 2008 and 2009," he added.

Source: Propertywire.com