Without initial contribution, it is necessary to earn between 80,000 and 135,000 euros gross per year to claim to buy a 40 m2 in Paris. The decryption of Fanny Guinochet.
In Paris, despite falling real estate prices, it is increasingly difficult to buy. MEven to have a small area, you need a higher and higher salary. VSThis is shown by a study by Virgil, a start-up specializing in the financing of real estate projects. From the prices recorded by notaries last year, she calculated the salary it takes to buy a 40 m2 in Paris. By counting both the credit to be repaid each month over 20 or 25 years, but also all the costs (notary, insurance, etc.), assuming that you have no contribution at all, we get the following result: depending on the districts of the capital, you have to earn between 80,000 and 135,000 euros gross per year. In other words, being part of the 5% best paid French people.
Because even if Parisian prices are falling slightly, they still often exceed 10,000 euros/m2, and at the same time interest rates keep climbing: we’re around 3% and it’s not over. As a result, the most disadvantaged are first-time buyers, especially young families, with low incomes.
Wages are struggling to keep up
We need a salary twice as high as twenty years ago. In 2002, to buy a 40 m2, you had to roughly earn more than 40,000 euros per year. Which was already a lot at the time. Real estate prices were much lower, and above all interest rates were almost zero. But it is especially in the last five years that the loss of real estate purchasing power of households has been the strongest, because according to experts, a rise in interest rates of 1% is approximately 10% of capacity less borrowing. In addition, at the moment, banks are very careful not to exceed the maximum level of borrowing, the famous rate of wear.
Despite inflation, wage increases remain very contained, around 4% on average. In fact, to become owners, households will have to wait a long time or else agree to cross the ring road. In the inner suburbs of Paris, the salary required for a 40 m2 is around 50,000 euros. Another solution: push even further, but that means incurring transport costs. The case of the capital is of course very special, but today we find these difficulties of access to the real estate market in most French cities.