PARIS : BACK TO NORMAL ?

Severely impacted by inflation, the historic rise in interest rates, and the war in Ukraine, the Parisian property market suffered a severe setback in 2023. Though hope is admissible for 2024 which announces some positive breakthroughs. Encounter with Benoit-Henri Vitu, founder of the Terrasses et Jardins agencies.

Results for 2023 confirm an undeniable slowdown in activity :

“The decline was indeed real, and the sharp rise in interest rates from 1 to 4% in just one year significantly reduced clients’ purchasing power, thus leading to a fall in demand for real estate. The frustration generated by this loss of capacities on the part of buyers was a bitter pill to swallow, still struggling to come to an end. The same observation applies to sellers who were wincing and shunned the idea of lowering their prices. These are the main factors which paralyzed the market in 2023 and reduced the number of sales considerably,” explains Benoit-Henri Vitu.

At the foot of Les Buttes Chaumont, this unusual loft of 134 m2 opens out to a surprising Japanese garden, quiet and leafy, and also benefits from a roof-terrace of 27 m2. It is comprised of a vast living area with a lounge and open-plan kitchen, framed by large picture windows, and two bedrooms, one on the upper floor. Parking place possible. 1.169.000 €.

In Châtelet-Rivoli, on an upper floor in a fine old building, recently upgraded, this fully renovated, dual-aspect apartment of 73 m2 offers a vast living-room with large windows, giving onto a balcony with clear views of landmarks, an open-plan kitchen, and two bedrooms. 1.155.000 €.

On the 1st floor of a high-end residence in the 14th arrondissement, this apartment of 80 m2, not overlooked, benefits from a spacious leafy terrace of 48 m2 reached directly from the living-room and kitchen. It comes with two bedrooms, one with a small balcony. Cellar. Parking place possible at extra cost. 1.150.000 €.

Benoit-Henri Vitu launched the first Terrasses et Jardins agency specializing in properties with outdoor areas in May, 1999. A success story soon to celebrate its 25th anniversary ! Terrasses et Jardins, 146 boulevard du Montparnasse, Paris 14. (01 82 83 74 00). www.terrasses-jardins.com

But is the worst now behind us ?

“We can hope so, as we are already seeing positive signs. Key interest rates are heading lower, which means that banks will again be able to lend more reasonably. The government has also just extended the duration of mortgages from 25 to 27 years, on condition that work on energy efficiency is carried out. Finally, the slowdown in inflation should enable buyers to retrieve their buying power and boost their morale, all improving our projections. Hopefully it should contribute towards ending the wait-and-see attitude. In parallel, to kick-start the market, sellers must agree to lower their prices : if they resist and over-estimate their properties, the stalemate will unfortunately continue. As for prices, rather than a catastrophic vision predicting a meltdown in the market, I prefer the idea that the market will self-regulate and reinstate its own equilibrium.”