Property prices in the French capital have reached a new high according to the latest industry figures. The average price of a property in Paris reached 8,942/m2 in the first half of this year, representing an increase of 7.7% in just one year and more than triple the average price recorded in 2000.
The latest research from Savills suggests that the election of President Macron, historically low interest rates and growing consumer confidence are all set to have a positive impact on the prime residential property market in Paris.
Prime market prices rose by 4.3% in 2016 according to the report, while overseas buyers accounted for 9% of prime property sales. The percentage of American buyers in the city dropped from 21% in 2015 to 16% in 2016, while Europeans were the largest single foreign buyer group at 39%, led by the British, Swiss and Belgians.
Paris is also the biggest single market for shortterm rental website Airbnb, with some 65,000 homes listed for rent in the French capital. A recent decision by Paris city council means that from December, it will now be mandatory for those renting their apartments on sites such as Airbnb to register their property with the town hall. In response, Airbnb suggested creating automated limits to ensure its hosts in Paris and other French cities do not rent their property out for more than the 120 days allowed by law for a main residence in France, but it seems unlikely that this alternative proposal will be accepted by officials. This is a further attempt by Paris authorities to crack down on those who are illegally renting out their homes, and has been welcomed by the hotel industry.