Email alert
Subscribe

EUR

PARIS: THE LUXURY REAL ESTATE MARKET IS AS FIT AS A FIDDLE

LE PARISIEN - ELODIE SOULIE - 07-23-2018

A RENEWED SALES DYNAMIC IN 2018.

AS FOR PRICES, THEY ARE NO LONGER DROPPING BUT IN FACT RISING IN THE CAPITAL.

 “Optimism”, Confidence”, Records”…Vocabulary in the luxury real estate market and particularly in the market for prestigious family apartments has switched to positive words over the past few years. A particularly bright spell confirmed by Daniel Féau, the capital’s luxury real estate specialist. 

A combination of a change in the way France is perceived from abroad and increased buyer confidence has boosted acquisitions, taking sales volume to a hitherto unseen level in the first half of 2018 observe the Féau network’s experts, backed up by a recent analysis of the market situation carried out with their partner Christie’s International Real Estate. An analysis confirming Paris’s place in the globe’s top 10 most active residential markets.

Between January and May 2018, sales progressed by 32% in comparison with the same period in 2017. The pre-sale delay, notably for family apartments with a surface area of 150 sqm or less, has at the same time significantly decreased.

A MORE ENCOURAGING TAX SYSTEM FOR THOSE WITH RESOURCES

The pre-sale delay for this type of apartment has dropped from 62 days during the first six months of 2017 to 23 days in 2018. Once this type of property is marketed it is not exceptional to get an offer at the asking price within just a few days” observes Féau president Charles-Marie Jottras. Unprecedented…“The fundamental element is a historically low interest rate, with a possible future increase that should remain limited” Charles-Marie Jottras explains, going on to suggest a second wider and somewhat less tangible reason for this bright spell in the luxury real estate market: a “Macron” effect.

 “The context is favourable for clients such as senior executives and wealthy families, as well as those benefiting from unearned income” the Féau President adds. “Since 1982, the ISF tax has led to a significant number of French residents leaving the country … Over the past year however a U-turn has been observed, and those coming back are not uniquely ex-pats living in London returning because of Brexit!”! he underlines. “The tax system is less discouraging for those with capital, buyers notably of properties priced between 1 and 1.6 million euro, the segment with the strongest demand in the capital”. 

The price increase generally observed in the market is less significant in the case of top-of-the-range properties. “Although demand is strong, it is not at fever pitch” assures Charles-Marie Jottras who indicates an increase of between 1.1% and 5.6% depending on the value of the property. A private mansion valued at over 4 million euro witnessed a 5.6% increase and a price per sqm of 20 800€ compared to 19 700€ last year.

FRENCH BUYERS ARE BACK

Rejoice, the French are returning to deluxe Paris! “French nationals have come back to the country and are acquiring properties at prices ranging from 2 to 4 million euro” assures the Féau president, adding “French investors and entrepreneurs are also back on the market for properties in excess of 4 million euro.”

As for the foreign clientele, some changes have been witnessed. “A source of two of the capital’s major buyers of upmarket real estate, the Russians and the Chinese, has dried up” he explains. Both have suffered from draconian measures regarding capital leaving their respective countries. “On the other hand the Americans who have always been buyers in Paris have come back in force, acquiring exceptional real estate in the capital” concludes Charles-Marie Jottras. Investors from Saudi Arabia and the Emirates are increasingly interested in top-of-the-range real estate.

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.