Small dwellings observe the largest increases

In 25 years, from the end of 1996 to the end of 2021, apartment prices in Ile-de-France have multiplied by 3.6 according to the Notaries-INSEE. However, the price surge was stronger for some market segments and in particular for small apartments, studios and two room properties, whose prices multiplied by 4.2 during the period.

Yet small apartments have become proportionally a little fewer in sales. We are therefore tempted to attribute this specificity to slightly stronger demand pressure, perhaps following the restructuring of the old park that brings together small dwellings and new programs where studios, in particular, are relatively few. This slightly faster price acceleration took shape about twenty years ago and the gap has been maintained for 10 years.


Developments deviate very little from the regional increase in apartments

Price multiplied by 3.7 for the 3 room and 5 rooms + properties, and by 3.5 for the 4 room properties in 25 years. This represents an average annual rate of increase ranging from 5.2% for 4 rooms to 5.9% for studios and two rooms in Ile-de-France, while at the same time consumer prices increased by 1.2% per year (36.2% in 25 years).

An analysis, limited to the last 10 years, shows much more moderate price developments, with the market first experiencing an erosion of values from 2011 to 2015, before starting to rise again. In total from 2011 to 2021, prices increased by 21% with very few differences between housing types (minimum 20% for the 4 rooms and 25% for the two rooms).


In Paris, the recent price slowdown is affecting large housing

First of all, it should be noted that the price evolution of apartments with 5 rooms or more is quite erratic, because the basis of calculation and sales volumes are naturally less important. Overall, there are more moderate developments over the past 4 years for apartments with 5 rooms and more and, to a lesser extent, for 4 rooms.

The upward trend seems to slow down a little earlier for the 5 rooms and more than for other types of housing, during 2019 and even before the start of the health crisis. Prices (or index) remain positioned below all other types of housing afterwards, confirming a less uptrend for large dwellings, even if in the end there is only a gap of 3.5 points between the largest increase observed for the 3 rooms (+18.4%) and that observed for the 5 rooms and more (+14.9%).


Price changes are now faster for large houses

In 25 years, from the end of 1996 to the end of 2021, house prices have multiplied by 2.69 fairly homogeneously between small and large properties (2.68 for 5-room houses to 2.82 for large houses with 7 rooms +). This represents an average annual rate of increase ranging from 4.0% to 4.2%.

And if we focus on the last 2 years, the strong demand for space has led to a slightly stronger price acceleration for large houses (+15.6% for 7 rooms and more and 15.7% for those of 6 rooms) than for the individual as a whole (+14.0%), compared to +11.0% for houses with 3 rooms and less, +13.8% for those with 4 rooms.


Source: Focus Real Estate