Real estate: how the City of Paris buys buildings with all its might

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But the City's financial commitment does not stop there: for this project alone, it guarantees the loans taken out by the RIVP with the Caisse des Dépôts to the tune of 45 million euros. This massive investment covers a significant part of the total cost of the operation, estimated at more than 113 million euros. Although the amount seems high, it remains significantly lower than Parisian market prices. The acquisition was negotiated at around 4,800 euros per m²while the specialized site MeilleursAgents estimates that an apartment in this same street has an average price of 9,280 euros per m².

The capital also has a legal tool for acquiring new buildings: the right of pre-emption. This mechanism, provided for by the Urban Planning Code, gives it priority when purchasing certain real estate. Since 2023, 69 properties have been seized thanks to Paris town hall, for an average amount of 10.9 million euros per operation, according to a report from the consulting company Newmark.

This is particularly the case at 119-121 rue Damrémont, in the north of 18^e district, where the municipality led by Anne Hidalgo voted for a subsidy of 10 million euros to the RIVP (out of an operation of 32 million euros) in order to allow the creation of around fifty social housing units.

Since 2023, Paris City Hall has not hesitated to take out its checkbook. No less than 1.1 billion euros was invested by the city and social landlords to purchase residential real estate. Over the last 2 years, 84 real estate assets have been acquired or pre-empted by Parisian public actors, or almost half of all investments in residential real estate in Paris. Result: 2,000 social housing units were planned thanks to these operations.

However, the study warns of the risks that such investments could have on the private rental market. “Already trimmed by the increase in seasonal rentalsby the reluctance of owners to rent their properties or by the ban on the rental of thermal sieves, the private rental stock would contract further in the event of acceleration of pre-emptions and acquisitions by the City and its lessors.we can read. “This would accentuate rental tension and lead to an increase in rents”the report notes.

But the City does not intend to slow down its acquisitions, quite the contrary. “For 2025, we have a budget of 800 million euros for housing, including 600 million for acquisition”welcomes Jacques Baudrier, Parisian Housing Deputy. “1.4 billion euros will be invested over the period 2025 to 2027 in order to continue to build, acquire and renovate social housing”assures the Town Hall.