Email alert
Subscribe

EUR

EXPERT DISCUSSION – LUXURY REAL ESTATE PROFESSIONALS ANALYSE FOR "PROPRIÉTÉS LE FIGARO" THE STATE OF THE MARKET

PROPRIÉTÉS LE FIGARO - OLIVIER MARIN - 02-20-2018

Propriétés le Figaro: What is your appraisal of the year 2017?

Charles-Marie Jottras - President of the Daniel Féau Group : A hitherto unseen wave of confidence seems to have swept away the wait-and-see attitude, pessimism even, of the past few years, both for our French and international clientele. The low interest rates are of course attractive but it was the election of Emmanuel Macron as President of the Republic that created a dynamic that we have not seen on the market for many years.

PlF : What have been your best sales?

C-M.J : We have achieved a record number of sales at prices exceeding 4 million euro. The market for properties priced at over 10 million euro has also been active, for example a magnificent property in Neuilly sold for over 18 million euro.

PlF : How are prices evolving?

C-M.J : For our sales in Paris, the average price per sqm in 2017 was 13 301 euro/m², an increase of 6,82 % compared to 2016. Several of our top-of-the-range sales were concluded at prices in excess of 27 000 euro/sqm. The market for 1 to 2,5 million euro apartments has however remained the most fluid.

PlF : What are the major trends?

C-M.J : The activity of our French-resident clientele has been matched by foreign buyers, once again purchasing luxury real estate in France: in 2017 their acquisitions represented 42% of our sales at prices exceeding 4 million euro, in comparison with 26% in 2016. These buyers are principally from the Middle East, Europe and the USA. American clients have doubled compared to 2016. The Asian clientele, while limited, benefits from significant budgets. Russians have practically disappeared. We have never witnessed such strong sales in Paris and the western suburbs to French nationals living abroad as we observed in 2017. These buyers are mostly coming from London and Brussels; Switzerland and Asia share the remainder of countries of origin. All of these French nationals coming come have been attracted by an encouraging attitude to investment and business, illustrated by the drop in capital taxation. Taking into consideration that the offer is limited, notably due to non-existent new build in Paris or Neuilly, we would consider that an acquisition in either will increase in value over the medium and long term.

PlF : How is 2018 shaping up ?

C-M.J : 2018 should prolong, while perhaps attenuating, the trend observed in 2017. We do not envisage that the creation of the IFI will have major consequences; the greatest impact will essentially be a reduction in the private rental stock.

Translate by Simon Goodman.

Back
  • An influx of bankers boosts real estate

    9 June 2023

    Read more
  • Daniel Féau, a reference

    20 May 2022

    Read more
  • A resilient yet demanding market

    12 April 2022

    Read more
  • Parisian luxury real estate market in the context of the pandemic in 2021

    10 January 2022

    Read more
  • Harry Winston, the Diamond King, the King of Diamonds

    25 October 2021

    Read more
  • Our new magazine Autumn-Winter 2021/2022

    22 October 2021

    Read more
  • How concrete found its sensual side: the spectacular Paris home designed for showing off art

    11 August 2021

    Read more
  • REAL ESTATE: RECORD-BREAKING SALES IN PARIS

    16 July 2021

    Read more
  • Real estate: how Covid-19 has increased the price of assets with balconies, terraces and gardens

    7 June 2021

    Read more
  • Regal walled gardens make this £1.9m fairytale hunting lodge a private party palace

    18 May 2021

    Read more

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.