The latest figures (April 2007 to April 2008) for trends in Parisian real estate are now in.

Two Trends

The Paris market shows two contrary trends. While prices for good-quality properties are no longer rising stratospherically, they are still holding firm, with apartments in the best arrondissements posting double-digit gains. Meanwhile prices for inferior-quality properties have leveled off are already slipping

What lies ahead?

As the president of the Chamber of Notaires in the Paris Ile-de-France region, Jean-François Humbert, put it recently: "The Parisian real estate market is entering a new phase." The subtext of Humbert's remarks is that Paris has shifted toward a buyer's market, even for best-quality apartments.

The situations may offer a silver cloud for buyers who have put off buying in Paris because of steadily increasing prices. As the September edition of L'Express magazine notes, "Perhaps this new state of affairs will be the opportunity budget-minded buyers have been looking for to finally return to the City of Light." With the newly strengthened dollar, the market is even more attractive for American buyers.

More than ever, France is a sound investment

The figures also confirm what savvy players have known for years: that because of the eternal allure of France, and Paris in particular, French real estate remains one of the world's soundest business investments. The turbulence that has devastated world financial markets has confirmed the time-tested wisdom of owning French property as a business and lifestyle investment.

Prices

With all 20 arrondissements taken into consideration, prices in Paris posted a 9.4% gain in the 12-month period preceding April 1, 2008 - the first time since the early 1990s when the city overall has not shown a double-digit gain.

The average figure would have been considerably lower but for the fact that prices for top-drawer properties in all parts of Paris continue their relentless rise. Price buoyancy is especially evident the most sought-after quartiers. In brief, the Champagne properties are being picked off in a matter of weeks or days, while lackluster apartments, those in poor repair or on the upper floors of buildings with no elevator fail to generate significant interest. Prices for these lower-tier apartments have leveled off or are already heading south.

Anecdotal evidence gathered by Just France Sales bears out this two-directional pattern. Our agency partners in Paris report that exclusive properties are selling well, although somewhat less rapidly and often after more protracted negotiations. Meanwhile less-than-spectacular apartments are sitting on the shelf as owners refuse to accept the reality that the relentless tide that used to lift all boats has ebbed for the foreseeable future.

The rest of France

The continued buoyancy of the Paris real estate market is in marketed contrast to the rest of the country, where prices dropped an average of 10%. Traditionally strong markets like Provence and the Côte d'Azur have basically leveled off as second home buyers hesitate about making an expensive lifestyle purchase.

Total transactions countrywide

Reflecting a weakened real estate market, the number of sales transactions country-wide fell from 650,000 in 2006-2007 to 610,000 in 2007-2008 - the lowest number since 2004.

Mortgage interest rates

Driven by financial turmoil in world markets, interest rates have been on a steady march upward from a low of 3.8% in 2006. As of April, the average rate for a 15-year fixed-rate loan was 5.3%. (A good mortgage broker can trim a tenth of a percent or more off that figure; please contact us for advice on this subject.) Life and disability insurance will add another .35% or so.

Top prices in the hottest sectors

As usual, specific locations that benefit from open views of some important Parisian icon - the Seine, a park or a venerable historical site - continue to command the highest prices.

To 18,000 € per m2

• On the south side of the Seine overlooking the river, quai Voltaire (6th arrondissement) and quai Anatole-France (7th).
• In the 7th, the south side of the elegant avenue de la Bourdonnais adjacent to Champs de Mars.

To 15,000 € per m2

• Anywhere on Ile St.-Louis (4th), which can always be counted on to draw top-drawer prices.
• On Ile de la Cité, the quais overlooking the Seine.
• In the 1st, streets adjacent to Palais Royal, and around Place Vendôme to the Seine.
• In the Marais (4th), buildings surrounding the Place des Vosges.

To 14,000 € per m2

• The "Golden Triangle" (8th), bordered generally by avenues Champs-Elysées, George V and Montaigne.
• In the 17th, buildings with views of the south side of Parc de Monceau.

Areas beyond central Paris now in double-digit prices per m2

• To 12,000 € per m2: In the 14th, the sector along boulevard du Montparnasse between avenue Denfert Rocherau and Gare du Montparnasse; and the triangle bordered by avenue de Suffren and boulevard de Grenelle in the 15th.
• To 10,000 € per m2: The quartier immediately surrounding Sacré-Coeur in the 18th.

For a more detailed view of Parisian price trends, see the maps below.

The color-coded maps below divide Paris into six geographical sections, each with three or more arrondissements.

The price (Prix) charts show the range of selling prices per m2 within different quartiers of each section.