REAL ESTATE: THE PARISIAN LUXURY MARKET REMAINS EXPENSIVE AND RARE

CHALLENGES.FR - BY VIRGINIE GROLLEAU ON 28.12.2019 AT 4:00 P.M.

"Over a year, sales of prices in excess of 2 million euro represent less than 500 assets in the capital.

Driven by mortgage rates that have never been so low (1.12% on average excluding insurance and over all terms in November, according to the l'Observatoire Crédit logement / CSA), the volume of real estate transactions jumped by 10.4% in France over a year (according to the Conseil supérieur du notariat) with 1,059 million in sales of old apartments and properties. In the capital however, the market has remained more restrained, with a 1% year-on-year increase in sales in the third quarter of 2019. Why? The level of prices which reached 10,080 euro per square metre on average at the end of September, according to the notaries of Greater Paris.

The very specific niche market for luxury assets continues to attract buyers: “Over twelve months, the segment of sales of assets at prices exceeding 1 million euro represented around 4.5 billion out of a market that totals around 20 billion” calculates Charles-Marie Jottras, CEO of the Daniel Féau group. “This represents about 3,000 sales in Paris out of a total of 37,000 sales, that is to say about 8% of the market. Assets sold for prices in excess of 2 million represent less than 500 transactions."

One of the top-priced sales this year attained 39,000 euro per sqm for a luxuriously appointed near 300 sqm top floor apartment located on Passy hill and boasting a "breathtaking" view of the Seine. Considerably less, however, than the historic record established in 2008 for a 400 sqm apartment located on Quai Anatole-France, which sold for no less than 51,000 euro/ sqm. Assets of this quality remain extremely rare."

https://www.challenges.fr/immobilier/immobilier-un-luxe-parisien-rare-et-cher_690619