The Paris real estate market is experiencing a positive turnaround in 2024, providing new opportunities for local and international investors. After a period of slowdown, key indicators show an upward trend, driven by factors such as mortgage credit easing, price adjustment and technological innovation.
What is Driving this Resurgence?
- Mortgage Credit Reopening: Banks are adopting a more flexible approach to mortgage lending, offering more favorable terms and facilitating access to credit. According to the Observatoire Crédit Logement/CSA, mortgage loan production increased by 15% in 1H2024 compared to the same period last year. This has revitalized the market, allowing more potential buyers to access the financing needed to purchase a property in Paris.
- Property Price Adjustment: Property prices in Paris have adjusted to market realities, making them more attractive to buyers. According to Meilleurs Agents, the average price per square meter in Paris stood at €11,260 in the second quarter of 2024, a slight decrease from the previous year. This price correction has boosted demand and generated an increase in the number of transactions, creating a more dynamic and accessible market.
- Diversification of Real Estate Services: Rental management is gaining ground as a key strategy for professionals in the sector. By offering rental management services, real estate agents can diversify their revenue streams and provide added value to their clients, both landlords and tenants. According to the FNAIM, rental management currently accounts for 20% of real estate agency activity in France.
- Technological innovations: Technology is transforming the real estate sector in Paris. Solutions such as artificial intelligence for property estimation and sales, virtual tours and rental management platforms are optimizing processes, reducing costs and improving the customer experience. These innovations are making the market more efficient and transparent, which benefits all stakeholders.
