Parisian Real Estates – A View from Terraces and Balconies
Recently, we shared insights pertaining to the impacts of coronavirus on the secondhand real estate market in Japan. Today, we will transport you to the beautiful terraces of Paris to provide you, our readers, with a view on the Parisian real estate market.
According to pricing assessments of 32,000 home sales conducted by Pricehubble AG, one of the largest real estate databases and provide of data visualization service in the industry, we saw 21% of all Parisian districts have terraces and balconies.
Of the 20 arrondissements, the following cantons are on either end of the spectrum: 15th (31%), 16TH (28%); and 2nd (7%), 3rd (8%), 4th (9%). The 15th and 16th arrondissements are located in the fringe of the capital of France, the 2nd is located near the Avenue de l’Opéra, the 3rd is famous for Le Marais (Musée national Picasso-Paris and Place des Vosges), and the 4th arrondissement is known for: Île de la Cité (Notre Dame de Paris and Centre Georges-Pompidou).
Generally, there is a great disparity between sizes of balconies and terraces with some taking only 2% of the properties’ area to being over 50 m2 in size. Parisian balconies and terraces are generally petite in size with 64% being smaller than 9 m2 and 27% smaller than 5m2.
Looking at the size of terraces and balconies in each arrondissement, we found the 8th arrondissement of Paris (famous for the Champs-Élysées) averages 10m2. The 1st, 4th, 14th, 15th, and 16th arrondissement averages 8m2 while the 5th and 6th arrondissement (Saint-Germain-des-Prés, Jardin du Luxembourg) average only 5m2.
Comparing the prices of 5 m2 balconies and terraces, the most expensive region is: the 6th arrondissement at €8400. The 1st (Musée du Louvre) and 7th (Eiffel Tower) exceed €7000. In contrast, the cheapest is the 19th arrondissements (€4000) and the 13th.
Generally, according to Loeiz Bourdic, MD of PriceHubble France, when comparing price per square meter in Paris, prices do not fluctuate based on the size of the property. However, when comparing the size of terraces and balconies it does. When the property is 20 m2, the per square meter price is significantly cheaper than that of 5 m2. A stark example is how the per m2 price of a 5m2 balcony is €8400 while the 20 m2 averages €5350.
Mr. Bourdic also provided the insight that balconies/terraces are increasingly becoming more essential during the current Covid-19 pandemic and prices will continue to rise in the immediate future.
The above is the view on Parisian real estate prices from the perspective of balconies and terraces based on PriceHubble data.
I knew PriceHubble’s data in Paris is extensive and accurate. However, I did not realize data could be collected and analyzed not only from sale prices but also at a more granular level such as from the terrace/balcony perspective.
With headquarter in France, Germany, and Japan, PriceHubble provides real estate valuation and visualization services to European financial institutions such as BNP Paribas and major real estate companies. In May, PriceHubble was selected as a Top 50 EU Proptech startups and scaleups by the European Commission and the Finnova Foundation.
WealthPark announced a strategic partnership with Pricehubble on January 20th of this year to provide better services to all.