Real estate : the Parisian luxury market is not in crisis

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Real estate : the Parisian luxury market is not in crisis

BOURSE DES CREDITS

Posted on 29/01/2021

In the midst of the economic crisis, the luxury real estate market manages to survive and even grow with impressive stability in its figures. According to Sotheby's international Realty, it is the sale at a price consistent with the quality of the property that guarantees the sale. Also, new demands are developing from buyers looking to increase the space in their living space.

A stable luxury real estate market during the crisis
Alexander Kraft, the CEO of Sotheby's International Realty France - Monaco emphasizes that "generally speaking, the Paris Region market for high-end real estate is doing surprisingly well given the exceptional circumstances". Finally, the crisis has not discouraged buyers but it has also increased the number of customers because desires for space have developed. This is why the luxury real estate market is stable and the figures are similar to previous years.
However, in these crisis conditions, sales are still being made, but only an adapted price can ensure sales. Indeed, even in the high-end real estate market, if sellers offer a price higher than its value, it will be difficult or even impossible to sell it.

A containment that will change and redefine buyers' requirements
Also, this confinement has changed the buyers' criteria, there is a deep need for space. This desire is expressed either by the search for an additional room, or by the choice of a green space through a terrace, a balcony, a garden or a vast piece of land. These criteria represent real requirements, they sometimes modify the properties listed because despite beautiful locations, the lack of space can discourage buyers.
Paulo Fernandes, Deputy Director of Paris Ouest Sotheby's International Realty explains that confinement has changed buyers' expectations in the luxury real estate market. Those who wanted a beautiful apartment in Paris will sometimes abandon their project in favor of a country house. "The two confinements have generated a desire for change among our clients: while they initially wanted a 150 m² apartment, some now want to resell their apartment to take a more central location and buy a country house, others want a smaller property (100-110 m²) but with a terrace. »

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