Paris – a trendsetter of 'high' fashion in the real estate market<\/em><\/p>
Living in the capital of France is prestigious, so demand and real estate prices are very high. The price is mainly influenced by the location of the apartment (historical center) and total area. In Paris, the high price is also achieved due to the quality of construction work and the overall layout of the adjacent plot of land. Interestingly, a third of the apartments sold are 'studios' (one-room apartments without a separate kitchen), another third are two-room apartments (with one bedroom). 80% of all apartments sold had no more than three rooms.<\/p>
It is worth noting that this ratio is quite stable. This is explained by the supply on the Paris real estate market - large apartments are built in very limited numbers. Thus, market development directly depends on demand. A four-room apartment for a family with two children is too luxurious.<\/p>
Of course, there are also two- and three-story apartments in Paris, equipped with modern appliances, with luxurious chandeliers<\/a> hanging from the ceilings, and usually a Jacuzzi in the bathroom. However, they consist of six, seven or eight rooms and are a 'piece' product, an exclusive. An ordinary Parisian lives in a 'studio' or a two-room apartment with a total area of less than 50 square meters. If he starts a family, he moves to the suburbs, hoping to return to Paris only after retirement.<\/p>
The most popular are comfortable apartments in the city center or in historical districts. In addition, among all European capitals, Paris remains one of the most attractive real estate markets for investors. Stability and predictability are combined with good profitability and the status of 'gateway to the world'.<\/p>
Overall, the residential real estate market in Paris can be divided into three groups: first - private houses or villas. Their price varies by district from €300 thousand to €2-3 million. The second group is elite Parisian apartments with improved layouts, European-quality renovations, and underground parking in prestigious districts. The average price of an apartment with a total area of 100 sq m, high ceilings, located near the metro, with a parking space in an underground garage ranges from €400 thousand to infinity. The third group is ordinary small apartments in multi-story buildings. On average, €80-150 thousand. Such offers are the most numerous on the Paris real estate market. But this does not mean that they stagnate on the market.<\/p>
As for prices, in 1996 transaction amounts rarely exceeded €200 thousand, and in 50% of cases even €100 thousand. In 1996, for this money one could buy a two-room apartment, and for €200 thousand - most three-room apartments.<\/p>
Until 1998, apartment prices were quite stable (?2,300-2,500 per meter). But from 1998 to 2002, prices rose by 50%. As 'Financial News' notes, 2003 set a kind of record for the number of transactions completed. The beginning of 2004 was marked by a price record (about €4,400 per meter in January). In September, a meter already cost €5 thousand. In 2006, the price per square meter rose by another €1 thousand, and today the average cost is about €6,000-7,000. Surprisingly, despite such growth, analysts of the Paris real estate market are absolutely not inclined to talk about further stagnation and assure that in such a city the price per square meter cannot be cheap, hinting at an even greater increase in prices.<\/p>
