Luxury real estate in Paris: always bigger, always more expensive
IMMOBILIER.LEFIGARO.FR - By Jean-Bernard Litzler on 03/12/2021
INFOGRAPHIC - Despite the absence of foreign buyers, 2021 has been an excellent year for luxury real estate, even in the capital where the "traditional" market is nonetheless stagnating.
When the health crisis broke out, luxury real estate networks were among many to be somewhat pessimistic about future activity. As the months passed, however, the projected decline in the luxury segment in which foreigners have always predominated, failed to materialize. Better still: those involved in this sector are posting record results and opening more and more agencies. Recently, it was the turn of the Féau network to take stock and deliver a series of remarkable statistics after a record year in Paris.
Although in order to achieve this result the company took care to include Neuilly-sur-Seine, the capital’s “21st arrondissement” in its analysis, the conclusions are no less remarkable. "While we hear a lot about a waning love affair with the capital and a certain form of revenge for the provinces, we are observing a somewhat different evolution in our market segments", underlines Charles-Marie Jottras, CEO of the Daniel Féau group. And with good reason: in the capital, the group saw total sales grow by 39% between 2019 and 2021 to approach 1.35 billion euro.
Over 20,000 euro/sqm
Looking into Féau's statistics in detail, it appears that it is not only the most expensive properties that are experiencing the greatest increase, but also the most spacious, with single-family homes and private mansions particularly keenly sought-after. Taking this into account, the inclusion of Neuilly-sur-Seine in these statistics becomes clearer, with the wealthy Hauts-de-Seine suburb providing many of these expensive and spacious real estate assets. A closer look confirms that it was sales at prices in excess of 3 million euro that drove activity up with a 120% increase in turnover in 2 years in this segment of the market. Féau notes that for assets priced at between 2 and 4 million euro, the average price was 16,724€/sqm, increasing to 20,729€ /sqm for transactions at prices in excess of 4 million euro. Considerably more than the 10,700€/sqm observed by the capital’s notaries for the Parisian market as a whole. We also clearly perceive a desire for more space and (very) large surface areas. While sales of assets offering under 200 sqm of living space have changed little (see below), the 300 to 400 sqm segment is booming: + 219% in two years. Those in the 200 to 300 sqm range have more than doubled (+ 118%), as have those over 400 sqm (+ 156%).
Sales at prices ranging from 1 to 2 million are, on the other hand, slightly down (-3%) and particularly for assets that Féau, market leader in high-end real estate, would describe as " family apartments”, that is to say an under 150 sqm 3-bed apartment on an intermediate floor with no particular view or terrace. This segment of the market, which in the past was on the boil with over 4,000 potential customers for a single property, has calmed down significantly. "It's a true two-speed market", Charles-Marie Jottras says. Although the overall evolution in prices is not in keeping with the traditional market in big expensive cities, the company is witnessing two other strong trends that can be found across the market: the desire for a single-family home and a must-have outdoor space.
Outdoor space is a must
Sales of single-family homes and private mansions with gardens have tripled over the past two years and account for no less than half of the increase in the company's turnover. An outdoor space is now a sine qua non in order to conclude a sale. “There has always been a strong demand in the past” explains Nicolas Pettex-Muffat, Féau’s Managing Director, “but a bit like when clients expressed a desire for a top floor apartment and finally opted for a quality apartment on another floor, it wasn’t necessarily a deal-breaker not to have one. But today an outdoor space is an absolute must." Finally, despite the unwavering appeal of the French capital, "without equivalent in Europe except for London" according to Charles-Marie Jottras, the network is also witnessing a significant increase in demand in its nearby cities. Féau is delighted with “big sales figures” achieved in Saint-Cloud, Vaucresson and Versailles, not forgetting further afield with the rapid take-off of its Provence agency and the projected opening for the end of the year of an agency in Deauville.
