What makes Paris so attractive?
The real estate market in Paris has shown a significant evolution over the last decades. In 2024, the average price per square meter stands at €9,224/m², although properties can vary between €6,151/m² and €15,374/m², depending on the area. This growth in prices has been driven by several key factors:
- Sustained demand– Paris remains a highly attractive destination to live and work, for both local and foreign residents. The city has more than 2.1 million inhabitants and receives more than 30 million tourists each year, ensuring a steady demand for housing. It is also an important economic and financial center with a low unemployment rate and a high quality of life, which helps to sustain demand.
- Limited supply: The availability of buildable land in Paris is very low, limiting new housing construction and putting upward pressure on prices. Strict zoning regulations controlling building height and population density in central areas also contribute to the shortage of properties.
- Low interest rates: For years, interest rates in the euro zone have been historically low, facilitating access to real estate credit. For example, in December 2020, the average interest rate on real estate loans was 1%, encouraging many buyers to purchase properties.
In the last 12 months, prices per square meter have experienced a 7% decrease, falling below €10,000/m². This price decline has been driven by rising interest rates and increased supply in the market. However, some of the most prestigious areas of Paris, such as the 7th and 8th arrondissements, have maintained high prices due to a shortage of high quality properties.
Is now the time to invest in Paris?
Overall, the Paris real estate market remains a strategic asset due to its resilience and long-term growth potential. Property investment in Paris offers not only financial stability, but also appreciation opportunities, making it an attractive option for long-term investors.
Download our “Paris Home Buying Guide” and discover everything you need to know to invest successfully in the French capital.
