High-end real estate survives the crisis

Although the clientele is more demanding on certain Parisian properties, the market for prestige real estate is holding steady. Alexander Kraft, head of the real estate subsidiary of the luxury house Sotheby's, is surprised to see his turnover increase by 5% compared to the previous year in the midst of the crisis. What's more, Sotheby's is not the only network to benefit from this. In fact, the Barnes and Daniel Féau networks have certainly recorded a drop in sales of Parisian goods and a stabilisation of prices, but sales in the provinces are on the rise. Indeed, the towns of Biarritz and Deauville are increasingly popular with wealthy buyers.

Alexander Kraft emphasises the effects of confinement, the latter having developed a thirst for space among buyers who are now looking to acquire properties with outdoor spaces such as a balcony or garden or simply larger properties. This is due to a more inward-looking lifestyle due to confinement, which has developed a desire to increase the quality of life in the main residence. There is therefore a desire to increase the living space, to have an office for teleworking but also an outdoor space to ventilate, even during confinement.

Useful assets as a refuge

The consumer real estate networks feel the same need among buyers, without noticing an increase in demand. This is more pronounced among wealthier people, who are more eager to find larger properties. Indeed, some sales are concluded remotely, without visiting beyond the virtual. This underlines the rush to sell and the urgent desire for a larger property.

This desire for space is added to a desire to secure one's capital. Rather than investing in shares such as gold, for example, buyers prefer to buy goods as a safe haven. The fluctuation of shares during the Covid makes real estate seem like the safest investment.

The health crisis has nevertheless slowed down the usual clientele, namely the British, who cannot travel to buy property in France. Alexander Kraft remains optimistic, however, that sales will rebound when foreigners will be able to enter France again. In fact, continued sales supported by French customers could lead to a significant increase in sales once foreign customers are added.

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