The luxury real estate market in the capital has not mirrored - at all - the downturn observed in transactions at prices below 1 million euro resulting from the economic, financial or geopolitical context.
The war in Ukraine, the increase in rates and instability in the equity market seem, in fact, to have had little or no impact on the luxury real estate bracket.
This contrast between the top-end and the rest of the market has been observed during other crises in the past. Clearly particularly resilient, the luxury real estate market is progressing at the pace of other luxury assets such as art.
We are confident that 2023 will follow suit as we can’t see a change in the constants on the horizon; Paris remains a powerful magnet for both French and foreign buyers, quality assets coming onto the market are few, and changes in interest rates have a lesser impact for buyers in this price range.
With a readjustment of the balance of power between buyers and sellers, this is less true when it comes to family apartments at prices between 1 and 2 million euro. Nonetheless, with supply remaining significantly lower than demand, we do not expect any major development in this segment of the market in 2023.
Although figures and trends presented relate to the sales of the Daniel Féau group, they may be considered to globally represent the luxury market overall.In 2021 - the last year for which we have exhaustive data from Notaries - Daniel Féau sold assets with a total value of 667 million euro at prices in excess of 2 million euro, i.e. 24.5% of the total 2,728* million euro Parisian market.
We also sold assets at prices in excess of 4 million euro with a total value of 291 million euro, i.e., a 37.6% market share in a 773 million* euro market.
Charles-Marie Jottras - President and Nicolas Pettex-Muffat - General Manager
*Source: Chambre des Notaires de Paris