In Paris, real estate prices have continued to plummet for several months. The reason is the increase in mortgage rates between the start of 2022 and the end of 2023, which has clearly complicated access to borrowing for households. However, with an average price reaching 9,282 euros per square meter on average in December 2024 according to MeilleursAgents (-2.9% over one year), the capital remains by far the most expensive city in France. But what about at European level? Is Paris really more expensive than other capitals? To find out, we compiled the prices per square meter updated in December 2024 in eight European capitals, using data from our partner MeilleursAgents.
If France has been affected by a violent housing crisis for two years, with prices plummeting in large cities, the real estate market is, on the contrary, flourishing in the capitals of southern Europe. Madrid (Spain) and Lisbon (Portugal) have in fact seen their prices rise by +15% and +8% respectively over one year, to reach respectively 4,830 euros and 4,152 euros per square meter, on average. “The Spanish and Portuguese capitals continue to attract investors thanks to more affordable prices and a stable economy, which has the effect of pushing up property prices, explains Alexandra Verlhiac, economist at MeilleursAgents. Investors have confidence in the Spanish economy, which is combined with much lower prices than in Northern Europe.»
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Prices are soaring in southern Europe
This surge in prices in southern Europe can also be explained by the implementation of “golden visas” in Spain and Portugal. These programs allowed non-European investors to obtain a residence permit in exchange for a real estate investment of at least 500,000 euros. “Although these programs were recently suspended, their impact is still being felt on prices”continues Alexandra Verlhiac.
In addition, the proliferation of tourist accommodation has contributed to the rise in property prices in southern Europe, with a +41% increase in the number of such accommodations in Madrid in seven years. Lisbon, for its part, has seen its real estate prices increase by +80% in ten years, making access to housing difficult for the local population, according to a study by the Bank of Portugal.C
On the other hand, contrary to the trends observed in southern Europe, Rome, Brussels and Berlin show stability in property prices over one year. Note that in Rome, prices are three times lower than in Paris (3,031 euros per square meter on average), which makes the Italian city one of the least expensive capitals in Europe. This is explained by economic activity which is mainly concentrated in Milan. Note that prices are down -4.5% over one year in London, where the price is now trading on average at 8,291 euros per square meter, or around 10% cheaper than in Paris.
