Two years into the health crisis, the luxury real estate market continues to ride its good momentum and remains attractive throughout the national territory.
French buyers are there, as evidenced by a recent study by Belles Mansions*, an Internet portal specializing in luxury properties belonging to the SeLoger group. In search of a privileged environment, they are looking for more homes.
Prestige goods, safe haven
Buyers of luxury properties are confident about the future, with 76% of candidates to join believing their project will be successful in the next 12 months, according to the Bells Residences study. The rate goes up to 85% among sellers.
Furthermore, for 79% of sellers and 68% of future buyers, luxury real estate is still considered a safe haven.
Real estate prices soaring
The luxury and “ultra-luxury” real estate market once again shows its resilience in a complex context: over the past 12 months, prices in this segment of the market have increased by 1.9% year-on-year between June 2021 and June 2022.
Notable attraction of luxury homes
Sales of luxury homes and mansions are driving the overall market with significant price increases since the first close. It jumped 14.3% to 6,854 euros per square meter on average, in the face of advertising inventory which fell by 10%.
While the ad inventory for luxury apartments has increased by 37%, after a large number of properties offered since the summer of 2020, prices have fallen by 5%, or 7,791 euros per square meter on average.
Evidence that the attractiveness of homes has strengthened since the confinement periods: before Covid, luxury home prices recorded a certain stability at the price level (with +2.4% between June 2018 and June 2020), the study indicates, even though apartment prices increased during the same period by 8.5% .
“It is surprising to note that even buyers of prestigious properties have seen their needs evolve in the wake of the health crisis,” said Thomas Lefebvre, vice president of data and science at SeLoger & Meilleurs agent group.
Future buyers are mainly looking for a premium environment. They want to change their living environment, to have more space and an exterior look, which explains the strong allure of luxury homes. »
French buyers who pay more than 1 million euros
The majority of buyers are over 50 years old and working. They often look for their main residence (62%). And 90% of transactions over 1 million euros are made by French buyers.
The Paris market focuses on 67% of luxury apartments for sale at an average of €14,462 per square metre.
“So, the recorded drop in prices is explained not by a lower presence of foreigners on our lands, but by different research since the pandemic,” Bell Residences identifies.
The Alps are famous for exceptional property buyers
The Côte d’Azur, which focuses on 17.2% of ads for luxury homes for sale, is experiencing sharp price increases (+10.5% over two years for luxury homes at 10,912 euros per square metre).
On the Atlantic coast, prestigious homes find new owners for an average of €5,376 per square meter (+28.3% over two years). Brittany is also doing well with the good increases recorded in the price of luxury homes (4,977 euros per square metre, +29.3% over two years).
Alpine ski resorts remain popular locations for exceptional property buyers, with the price of homes jumping 16% in two years, to €7,216 per square metre.
*The study was conducted in collaboration with OpinionWay among 379 prospective buyers and 143 sellers of a prestigious property in France with a purchasing project in the next two years and were interviewed from May 10 to 23, 2022.