What factors influence the price of a Paris flat

If you want to buy apartments in Paris or to rent cheap apartments in Paris, you should find out certain elements that influence the appartments cost. We used to think location as the most important factor that affects house’s price, but it isn’t.



Factors that influence the price of a Paris apartment or a house:

1. Rise of real income – people can spend more on buying apartments. Paris citizens should know that in case the average salary grows house's prices will rise also. If the unemployment rises or salaries decrease, the demand for buying houses will decline.

2. Mortgage interest rates affect the mensal charge for a mortgage, that is usually the main part of houseowner's spending. If the interest rate is high, people would rather rent flat in Paristhan buy it.

3. Trading is one of the strongest reasons of house's cost growth. Numerous property stags buy apartment in Paris trying to gain some profit selling it later on a higher price. You will be surprised to know that apartment rentals in Parisare the main alternates to buying a flat, so they influence value as well.

4. Expectations - if people expect home’s”flat’s prices to go down they'll try to sell it to gain more money. Most people buy a house to live in, and lowering prices will encourage homeowners to rent apartment in Paris rather than buy it.

5. Supply of homes is fixed because it takes time to build houses. This factor also influences prices for Paris apartment rental. Shortage of houses built explains why house prices have risen faster than earnings.

Other factors to consider:

- house condition

- comparable home sales price

- distance to hospitals, schools, stores etc.