Price drops with variable geometry

The eastern Parisian neighborhoods, particularly popular with young CSP+ families, are experiencing significant drops in the price per square meter. The bobo areas, once in vogue, are experiencing a notable correction in their prices, as evidenced by the sale by Junot of a 187m² apartment on rue La Fayette in the 10^th arrondissement for €1,500,000, or €8,821/m².

 

In eastern Paris, prices have steadily climbed in recent years, but now a 10 to 15% drop seems necessary to stimulate demand. At the same time, buyers, particularly young people, entrepreneurs and first-time buyers, are finding it more difficult to obtain financing, faced with credit refusals.

 

In contrast, price corrections are much more moderate in the western arrondissements of Paris, where incomes are higher. At Junot, 75% of Junot sales over the past 3 months have been made through cash payments, i.e. without a loan, thus facilitating transactions.

 

As evidenced by the sale by Junot of this 199m² apartment in perfect condition located in the 7^th arrondissement on the Champ Mars sold for €6,590,000, or €29,717/m².

Large areas less impacted by falling prices

Junot also observes that small properties undergo greater corrections than large apartments. Presenting in the majority of cases a less favorable DPE, these small areas require costly renovations to bring them up to standard and are less considered a good investment by potential buyers. Furthermore, they also attract a target with lower incomes who are more exposed to loan refusal.

 

On the other hand, large family apartments at a higher price, with a surface area greater than 100m², seem to be spared and show less significant declines.

The price of sky

Apartments located on the upper floors (3^rd and above) are experiencing a smaller price drop, of the order of -1% vs. 2022, while properties on lower floors (from the ground floor to the 2^nd) are experiencing more significant price drops, on average -6% vs. 2022. Like this 154m² apartment in La Muette in the 16^th arrondissement on the ground floor, whose initial mandate was for €2,050,000, and finally sold by Junot at €1,480,000, a decrease of 27%.

 

As for the top floors, if they do not have a lift, we can observe a price decrease 4 times greater than those with one.

 

This observation illustrates a general trend linked to the quality of the properties. Those with major defects (work to be planned, low floor, lack of lift) experience a greater discount and sell less quickly than apartments without defects.