Parisian luxury real estate for the moment insensitive to the crisis

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Parisian luxury real estate for the moment insensitive to the crisis

BFM IMMO

Posted on 21/01/2021

With the Covid-19, we have to ask ourselves if the market of high end real estate is affected by the crisis. Indeed, Alexander Kraft, CEO of Sotheby's International Realty France - Monaco, explains that despite the difficult conditions of containment and the economic crisis affecting France, the figures of his network have not been affected. Also, the 9 agencies of Sotheby's Parisian network announce a similar observation. 

>However, current conditions are making buyers more demanding. Faced with sellers who do not adapt the price to the situation and the value of their property, buyers are becoming scarce. In fact, they are looking for exceptional properties, of exceptional quality and with an advantageous feature such as a beautiful view, or a terrace for example.

New ambitions among buyers

Paulo Fernandes, Associate Director of Paris Ouest Sotheby's International Realty notes that the clientele of high-end properties with large budgets is able to buy properties between 3 and 6 million with very little negotiation.  
The unprecedented situation of confinement has given new desires to the clientele. Indeed, buyers are now turning to downtown housing and second homes in the provinces. Customers are opting for smaller properties if they can obtain a terrace by this choice, or they are leaving the capital for properties in the suburbs, a good compromise between the city and the province.

An evolution that can be envisaged by the return of foreigners in 2021

David Prazowski, director of Paris Marais Sotheby's International Realty, notes however that this rhythm is noticeable in the east of Paris. Indeed, sales take longer and negotiations are more frequent. This problem can be explained by properties offered at too high a price by sellers and an increase in the quantity of properties offered for sale. Indeed, the competition caused by a greater number of goods delays the purchase of goods whose price is above market standards. On the other hand, if the property has a reasonable price in view of its value, it has come very quickly.
The absence of English-speaking buyers increases the amount of goods for sale, as they were usually purchased by this foreign population. However, this does not cause prices to fall, as sellers are more inclined to lower their prices to display an offer consistent with the property they are offering.
In the 6th, 7th and 8th arrondissements, Pascale Constans, associate general manager of Propriétés Parisiennes Sotheby's International Realty explains that many requests are made via the internet for foreigners who cannot visit France, particularly for properties with 2 to 4 rooms. 

To read the full article, click here. 

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