Housing prices in Paris fell to their lowest level in four years. This is reported by Bloomberg.

In June 2023, the cost of housing in the French capital fell by 4.1% compared to the same period last year—at the moment, the “square” in this city costs €10,936. This is the minimum since 2019, as well as the strongest monthly drop in the last ten years.

The main reason for the fall in real estate prices in Paris is the pandemic, as many people who left the cities during that period never returned. At the moment, this decline is also supported by rising interest rates.

On top of that, Parisian homeowners are facing a 52% property tax increase this year. Mayor Anne Hidalgo last year argued for this measure with increasing inflation and rising energy prices.

Interestingly, in other European capitals, the opposite trend is observed: housing prices are rising. For example, in Madrid in June, prices rose by 5.1% due to an acute shortage of supply in the market. Nevertheless, Paris still remains the most expensive market in Europe, exceeding the level of Madrid and Berlin more than twice.