In a troubled economic and geopolitical context, the luxury real estate market is in good health. Since the health crisis, buyers have been looking for more houses than apartments.
Luxury real estate remains more than ever a safe haven. According to a study by the website Belles Mansions *, belonging to the SeLoger group, sales in this market segment are not weakening, and French buyers are ready to pay large sums to acquire a prestigious property, a house in particular.
A resilient market
With prices up by 1.9% year-on-year, between June 2021 and June 2022, the luxury real estate market does not seem to have been disrupted by the health crisis. The current context, marked by galloping inflation and the crisis in Ukraine, has no impact on sales either.
Search criteria that have evolved since the Covid
Even in this market, buyer behavior has changed. They want to change their living environment, have an exterior, additional spaces... As a result, prestigious houses and private mansions have been particularly sought after since the confinements, with a stock of advertisements down 10%. And the prices of these properties increased by 14.3%, to reach €6,854 per m² on average. Luxury apartments, for their part, have seen their stock of advertisements plummet by 37% due to a large number of listings since the summer of 2020. Although their prices have fallen by 5%, it is however necessary to count 7 €791 per m² on average to acquire this type of property. On the Parisian market, which concentrates 67% of the luxury apartments offered for sale, they trade at €14,462 per m² on average.
Prices up 16% over two years in ski resorts in the Alps
The prices of luxury homes rose by 29.3% over two years in Brittany (€4,977 per m²) and by 28.3% on the Atlantic coast, where these properties sold for €5,376 per m² on average. On the Côte d'Azur, price increases are lower (+10.5% over two years), but it costs €10,912 per average m² to acquire a luxury home. The ski resorts of the Alps are also sought after by buyers of top-of-the-range properties, with prestige houses having seen their prices rise by 16% in two years, or €7,216 per m² on average. The mountain attracts buyers of second homes who now benefit from it for longer and longer thanks to teleworking.
Mainly French buyers
French buyers represent 90% of the clientele of the Belles Mansions site, and the majority pay more than one million euros to afford a luxury property. (translation by Google translate)
*Study carried out in collaboration with OpinionWay among 379 future buyers and 143 sellers of a luxury property in France with a purchase project in the next two years and interviewed from May 10 to 23, 2022
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