Exploring Opportunities for Buyers from America and Elsewhere
In my December 8 article Unlocking Opportunities: Paris Real Estate Prices Dip - Your Time to Shine as a Buyer! I highlighted the ongoing drop in Paris property prices, with 8 arrondissements falling below the 10,000⏠per square meter mark.
That favorable trend persisted in January 2024, with a 0.3% drop. Now, 9 arrondissements are below the 10,000⏠per square meter mark, with the 11th trendy arrondissement averaging 9,700⏠per square meter.
đ„ What else?
Encouragingly, banks are now more inclined to grant loans, and mortgage interest rates have dropped by 0.2% since the beginning of 2024 (currently around 4%).
đ„ What can we anticipate in the coming months?
It is the combination of various economic elements that will tip the balance one way or another:
Facilitated access to credit would would allow a number of project holders to quickly return to the market. This would somewhat alleviate the current imbalance between supply and demand.
Real estate borrowing rates will also play a crucial role: In the current context, lower rates would contribute to increasing the purchasing power of buyers and would promote the revival of the market. The decision of the European Central Bank (ECB) to once again keep its key interest rates unchanged reinforces the idea that the monetary tightening cycle is indeed over.
The question then remains as to when the first interest rate cuts could occur. In this regard, the ECB is being cautious, and it will probably be necessary to wait until the summer to see this change in monetary direction materialize. In anticipation of attracting new customers, banks are already gearing up for this phenomenon.
To conclude: With dropping Paris property purchase prices and lower interest rates, this may be the right time to seize the moment and realize your dream of buying property in your favorite arrondissement!
Happy property hunting, and may your French real estate journey be as smooth as a buttery croissant! đ„ đ«đ·
As always, I love to read your comments and answer your questions.
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