Prestige real estate: The markets of Paris and Hauts-de-Seine remain stable despite the covid

"Generally speaking, the Paris Region's high-end real estate market is doing surprisingly well given the exceptional circumstances. A unanimous observation of the 9 agencies of the network in the capital: French buyers are more present than ever and today the only properties that are not selling are especially those whose owners hope to get a price above market value. Buyers in this time of crisis are demanding and exceptional properties without defects find buyers very quickly. However, even if some sellers think otherwise, overvalued properties don't sell," explains Alexander Kraft.

General analysis of sales during containment

Concerning sales since the start of the second containment, Sotheby's Paris Ouest is pleased with a certain stability. In fact, Paulo Fernandes, Associate Director of Sotheby's Paris Ouest and Alexander Kraft, Managing Director of Sotheby's International Realty France - Monaco, analyze a certain recovery in sales. This can be explained by a desire similar to the first confinement, that of having more space, whether through a terrace or an additional room, or by moving out of the cities.  Thus, sales have not dropped at all, goods at the price corresponding to their value are sold very quickly, especially those without defects or those with exceptional characteristics.

Paulo Fernandes therefore points to substantial sales, whose selling price is generally between 3 and 6 million euros. Despite the absence of foreigners, the French clientele allows to maintain a sustained rhythm in the figures of luxury real estate. However, there is a greater reflection on the purchase of its properties, due to the economic situation. Nevertheless, some buyers do not hesitate to buy in cash or obtain loans very easily, which makes buying easier.

David Prazowski, agency director, also notes that prices are not falling and that demand is a source of satisfaction with the results. Also, Pascale Constans, Associate Managing Director of Propriétés Parisiennes Sotheby's International Realty, notes that buyers, like sellers, are more inclined to review their price targets, although some remain firm, which delays sales. Jean-Charles Engels, director of the Hauts-de-Seine agency, for his part, is surprised by the number of sales he has made, because since his arrival in the world of luxury real estate, he has never sold so much and in so little time properties at three million euros.


Analysis by neighborhood

Parisian neighborhoods suffer from various problems regarding sales. Concerning the 15th, 16th and 17th, as well as the 6th, 7th and 8th districts, the market remains dynamic despite the absence of foreign customers. Paulo Fernandes explains this by the sustained demand from Parisians. The properties sought are generally apartments with terraces or houses.  The sought-after neighborhoods remain the same as before the confinement, i.e. the Trocadero, Passy or the mute, the other mansions find many customers. Also in the 17th district, everything close to the park sells out quite quickly.

In the Marais and the East of Paris, it is the price that is the problem. Indeed, one observes a desire to go to the provinces but the sales do not materialize by a problem of price. Thus, the people received in the agency are particularly looking for properties outside Paris, in a more rural area. Here again, the absence of foreign customers is still a lack, because there is a large clientele for this part of the Paris region. On the other hand, there is no price decrease, the results are even better than those obtained before the confinement.

In the Hauts-de-Seine, the clientele is essentially Parisian who are looking to move away. Certain categories of goods between 1.6 million and 2.5 million euros, for example, are difficult to sell and reach a clientele for whom obtaining a loan can be more difficult. The market is still doing well, but agents remain cautious.

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Paris West Sotheby's International Realty, specialist in luxury and prestige real estate in Paris