Gary Bismuth, director at Vaneau Saint-Honoré, deciphers the situation of the real estate market in Paris in the 8th arrondissement.
The drop in prices persisted during the first quarter of 2024. Indeed, all districts in our sector (1er8e and 17e districts of Paris) as well as all types of property are concerned. There are slightly fewer properties available for sale, because unless there is a necessity, such as family reasons for example, sales plans are postponed until later. A slight recovery should be noted among buyers with an increase in requests for visits. The latter, unless the property presents no defects, are in a strong position for negotiations and take their time to decide.
Buyers are now more comfortable negotiating heavily on property prices. Sometimes, we receive offers considerably lower than the initial price from buyers when they believe that a property is overvalued. High-end, flawless goods, still few in number on the market, are quickly sold. For example, a 150 m² apartment in excellent condition in Faubourg-du-Roule found a buyer in less than a month.
The most sought-after neighborhoods: Parc Monceau, rue de Rivoli and Faubourg Saint-Honoré
The most sought-after areas remain those located near Parc Monceau, rue de Rivoli, and rue du Faubourg Saint-Honoré. St. Augustine is also highly sought after due to its central location and easy access to transportation. The 17the district, near Place de l’Etoile, is also coveted by buyers.
In the 1er district, still very popular for its pied-à-terre, prices can reach up to €15,000/m² or even more, particularly near the Palais Royal and the Tuileries. In the 8th arrondissement, prices tend to be in the range of €11,500/m² to €12,000/m². High quality properties are generally not offered below €14,000/m², with the exception of the Golden Triangle where the average price is around €18,000/m².
As for the 17the district, the Chambre des Notaires tells us that prices are now below €10,000/m², including in the Plaine-Monceau sector. We observe an average varying between €11,000/m² and €13,000/m² in the most sought-after areas of this district.
Buyers looking for family apartments in good condition
We have seen some momentum among foreign buyers, particularly in the 8th arrondissement. The latter were in a wait-and-see situation, but they are now more active, searching for a property diligently, sometimes concluding the purchase.
However, French buyers remain in the majority and represent 80% of our customers. Among French buyers, there are those who want to stay in the same neighborhood and expatriates looking for a pied-à-terre. Sometimes, they consider a change of life leading to a permanent move to Paris.
Concerning the most popular properties, these are family apartments with a surface area of between 100 and 150 m², close to Parc Monceau, benefiting from a good location and a clear view. Conversely, apartments of less than 60 m² with a poor DPE are sanctioned by French buyers, anticipating difficulties in rental or resale.
The costs of raw materials push buyers away from purchasing a property requiring work. We observe that apartments, even quality ones, located in less premium locations, even if the area is pleasant, are heavily penalized due to their prices on the current market.
As for international buyers, we notice that they are attached to the old and want properties in very good condition, “turnkey”. Not being on site, they lack the time and interest to follow the work, which explains their lack of interest in these properties.
In addition, apartments with a location that is not very central, such as the Madeleine district or “premium” such as near Parc Monceau, do not attract them.
Finally, since searches take longer, potential buyers are more informed about the real estate market and therefore more demanding.
Infrequent comfort sales
Within our agency, the sellers are mainly French. Generally, the latter part with their property for family reasons such as separation, birth, departure of children, inheritances, etc. However, the sales that we call “comfort sales” for a move to a more favorable area are uncommon. With the current situation in the banking sector, sellers are strongly attracted by offers that are not conditional on obtaining credit.
The market recovery will take place after the Olympic Games, when the school year begins
The rate cut that began in April offers an encouraging outlook. In addition, forecasts of further declines in the coming months are encouraging buyers to resume visits. We also hope, like the sellers, that the market recovery will take place after the Olympic Games, when the school year begins.
Two examples of goods in the 8e
Monceau: apartment for sale of 164.72 m² €2,850,000
Exceptional bright and crossing apartment located on the 2nd floor. It includes an entrance, kitchen, living room with fireplace and small lounge opening onto a long balcony, 3 bedrooms, 2 shower rooms, bathroom and 2 cellars.
Rue d’Artois, 151 m² apartment sold: €13,900/m²
On the 4th and 5th floors by elevator, magnificent duplex crossing with open views, calm and bathed in light. Large living room of 57 m², equipped dining kitchen, 3 bedrooms, 2 shower rooms. Cellar.
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