In Paris, very expensive real estate has never sold so well
Immobilier Le Figaro - Written by Jean-Bernard Litzler 10/05/2022
While the average price in the capital could drop to below 10,000 euro/sqm, the most luxurious properties are breaking records both in price and in volume.
As the saying goes, “ Paris qui pleure et Paris qui rit” ... While the real estate market has been increasingly difficult over the past few months for properties that are less than perfect, or even for those which simply do not benefit from an outdoor area, the luxury sector is more than holding its own, as statistics just published by the Daniel Féau network confirm. This specialist in luxury real estate, mainly present in Paris and its desirable western suburbs, has analysed its sales since 2019 in three price ranges: between 750,000 euro and 2 million euro, from 2 to 3 million euro and finally at prices in excess of 3 million euro.
Comparing sales over the first four months of each year, the number of transactions fell, quite logically, in all segments in 2020 when strict lockdown measures were implemented. Over the following two years and in the "cheapest" price range, sales were very slightly above those achieved in 2019. Sales at prices ranging from 2 to 3 million euro on the other hand increased by 48%, and then by 53% when compared to the year 2019, itself a very good year. And at the top of the range, sales increased by a remarkable 159% in 2021 and a further 188% in 2022. Almost threefold. To put into perspective, the Daniel Féau network concludes over 25% of sales in the capital at prices ranging from 2 to 4 million euro, and over 40% when prices exceed 4 million euro.
Day-to-day lifestyle
What is behind this surge in the sales of the most expensive assets when foreign buyers, traditionally particularly active in these price ranges, are still largely absent? According to Nicolas Pettex-Muffat and Charles-Marie Jottras, respectively Managing Director and CEO of the network, three trends witnessed over the past few months continue to encourage those with the deepest pockets to buy real estate. Firstly, a need for an outdoor area encouraging a significant of buyers to visit and consequently acquire apartments with terraces or single-family houses and private mansions with gardens. Secondly, real estate is increasingly seen as a “safe haven” as the stock exchange stutters and inflation and a raise in interest rates loom on the horizon. Finally, there is unquestionably a desire to optimise the place we call home on a daily basis, what Nicolas Pettex-Muffat and Charles-Marie Jottras call the “Valeur de jouissance quotidienne”. Even in the luxury market, the Féau network notes that buyers, anticipating an increase in credit rates as well as inflation over the coming months, are consequently “stocking up” …
