How has luxury real estate fared this year ?

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How has luxury real estate fared this year ?

PRATIQUE

Posted on 14/01/2021

In March 2020, containment caused the French economy to vacillate, many companies fell and luxury real estate was expecting a fallout. However, as surprising as it may be, prestige real estate saw its figures stabilize or even increase. The health crisis does not seem to have affected this sector. Moreover, the conditions of confinement and the impacts of the crisis of the coronavirus modified the expectations of the customers and revived certain sectors.

An incredible tonicity during the crisis

Despite the unfavorable economic conditions, the figures for the luxury real estate market remained stable. This strength is explained by various parameters that confirm the stability of the market. Housing loans were more difficult to access and the anxiety-provoking climate put many customers in a state of uncertainty and instability, with properties continuing to sell normally. These surprising results, of a prosperous market at odds with the rest of the markets in general were questioned. The CEO of Sotheby's International Realty France - Monaco, however, certifies that "the year 2020 looks as good as 2019 which was already exceptional". Luxury real estate does not seem to be negatively affected by the health situation. 

A growing clientele

Today, confinement has made people want space. In fact, many clients are looking for a property with a balcony or terrace, an office for teleworking, or even a second home to take refuge in. Being confined to one's own home has made clients more aware of their need for space and improved their quality of life in an apartment or house. Prestigious real estate is therefore very successful in areas close to Paris or in the provinces for second homes. Also, this craze has not stifled the Parisian market, which is still very active in the search for prestigious Parisian properties. This market works so well that supply is sometimes lower than demand.

Stable figures even during the crisis

While 63% of specialists imagined that we would see a fall in real estate figures according to a study by Belles Demeures, prestigious real estate surprises. Indeed, the health crisis does not seem to have reached this sector, property prices have rarely fallen and sales have been maintained even during the confinement. These figures can be explained by a revival of demand and new customer requirements.


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