In the capital, 2020 turns out to have been almost as exceptional as 2019 in terms of real estate sales at prices in excess of 3 million euro. This is largely thanks to French buyers.
(BFM Immo) - The almost total collapse of tourism owing to the health crisis has not got the better of the luxury real estate market. One of the leading specialists in the sector, the Daniel Féau network, has published its report for 2020, and it is clear that the luxury market has more than resisted, and especially in the capital.
For sales at prices above 3 million euro, last year’s results were close to those attained in 2019. According to Daniel Féau, their agencies recorded a sale every 3 days with an average price of 4.9 million euro. This remarkable demand was largely driven by French buyers.
Foreign customers have evaporated
In this ultra-luxury segment, French buyers now represent 3 out of 4 sales, while as a result of the health crisis, the share of international customers has plummeted from 42% of sales in 2019 to 27% last year. Daniel Féau observes that despite the virtual disappearance of Chinese and American customers, their absence has been largely offset by European and in particular French buyers.
With demand remaining strong, prices have soared once again. They are near 19,000 euro/sqm for assets priced at over 3 million euro, an increase of above 9% over a year. And the Daniel Féau network does not foresee a reversal in the short or medium term given the lack of supply and the simultaneous strength of demand.