Parisian luxury real estate is doing well: the activity is dynamic, thus sales times are reduced and prices are rising. Update on the situation.
FRENCH PROPERTY MARKET REVIVES
The Parisian luxury real estate market is booming since the beginning of the year, which pushes prices to new levels. The Parisian high-end property agent Daniel Féau recorded an increase in sales volumes of 32% between January and May 2018 compared to the same period in 2017. Moreover, the average selling time is shortened and sale prices are up from 1 to 6% depending on the type of goods.
THE MACRON FACTOR
"There has been a very clear Emmanuel Macron effect [...] since last summer" states Charles-Marie Jottras, Daniel Feau’s President as well as other French luxury real estate agencies. The French president’s victory has triggered confidence in its market by putting French properties back on the map, with rising prices gathering momentum as locals and foreign buyers return to the market and the number of transactions picks up.
The Brexit effect on Paris luxury real estate is already underway. French expatriates domiciled in London and elsewhere in the UK are likely to be considering a return to France. Since the beginning of the year, 6 to 7% of Daniel Féau’s sales accrue from French investors living in the UK. This percentage, which remains low, should increase from 2019, once the expatriates are actually back.