State of Luxury Real Estate in Paris

Key Highlights

• Lux sales in Paris defined as “robust”
• Price increases +9.2% in high-tier markets

Luxury Real Estate Remains in High Demand in Paris

According to Charles-Marie Jottras, CEO of Daniel Feau Conseil Immobilier and Belle Demeures de France, Paris listings with an average price point of $5.92M “…(are) achieving a sale every three days…”  a price increase of +9.2% y/y.

On the other hand, Paris listings priced between $1.19M and $3.58M have seen a decline in sales volume.  Jottras added, “It’s also worth noting that, while declining, sales (at the lower lux price points) increased by +6.1%.

New Buyer Profile in Paris

Pre-pandemic, the Parisian lux real estate market attracted a large share of international buyers from the US, China and the Middle East.

Now, due to travel restrictions, American and Chinese buyers have virtually disappeared.  Buyers from the Middle East, the EU and French nationals have replaced them.  In fact, French buyers represent three in every four sales.

Big Demand for Properties with Outdoor Areas

Jottras points to strong sales upticks in his Neuilly, Saint-Cloud and Aix-en-Provence agencies.  City-dwelling families in France, as in the US and many other countries, are choosing to live in chateaus in the provinces (countryside) as long as the provinces are under 45 minutes away from Paris via the high-speed bullet train.

2021 and Beyond

Jottras sees the future of luxury real estate in Paris as a given. National and international demand outweighs supply. The French capital’s structural imbalance with supply (due to the absence of new builds) has done nothing to dampen national and international demand.

In a city like Paris, Jottras believes, “The quality of its buildings, its rich culture and its beauty still make Paris one of the most sought-after capitals in the world.”

Thanks to Yahoo! Finance.

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