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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 know several elements that exert the home's cost. We used to think location as the major factor that affects house’s value, but it isn’t.



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

1. Growth of real income – people can spend more on buying apartments. Paris citizens nust know that every time the average salary grows house's prices will rise too. If the unemployments rate rises or salaries decrease, the demand for buying houses will fall.

2. Mortgage interest rates affect the monthly paying for a mortgage, that is usually the biggest 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 major reasons of house's prices growth. Most property stags buy apartment in Paris trying to win some profit selling it later on a higher price. You will be surprised to know that apartment rentals in Parisare the main substitutes to buying a house, so they influence cost too.

4. Expectations - if people expect house’s prices to fall they'll probably sell it to gain more money. Most people buy apartments to live in, and falling 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 home’s value have risen faster than earnings.

Other factors to consider:

- house condition

- comparable home sales price

- distance to hospitals, schools, stores etc.

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14.11.2024
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