PIERRE PAPIER
Posted on 21/05/2021Prestige real estate in the Paris region is the sector that has fared best in the face of the crisis in the year 2020. Indeed, different phenomena can be observed in other international real estate sectors. Unlike its counterparts, Parisian luxury real estate has maintained its growth, increasing by 2%. Real estate consultant sa vie expects a global price decline this year.
At the beginning of the year, experts and real estate agencies argued that the time was ripe for an increase and for resilience in the face of the coronavirus crisis. Indeed, the high-end real estate network, Sotheby's International Realty France-Monaco, announced that it had observed a 10% increase in prices. A competing agency, Daniel Féau, has reported a 74% increase in sales between 2020 and 2021 for properties worth more than 2.5 million. In general, there is a rather impressive rise in demand.
According to the experts' analysis, this increase in demand is felt throughout France. Indeed, this phenomenon can be observed in the luxury real estate market, and is a consequence of containment. In the face of the crisis, many people have been looking for a larger property, to escape to the provinces or to secure their money in the purchase of a property. According to Sotheby's, the increase in sales has changed the average price of Parisian property. In 2020, it was 1.9 million euros, 17% lower than the average price in 2019. This is due to the very high price for the provinces, however, it does not reduce Parisian sales.
Despite a decline in other real estate sectors, luxury real estate is not affected. It is particularly resistant to the coronavirus. However, the districts stand out. Not all have been spared by the crisis. The fifth arrondissement has managed to stand out from the crowd, with a price increase of 8%. The outlying areas were also able to increase their prices much more than in previous years, as Parisians fled to the suburbs. Despite the closure of the borders, the foreign clientele has remained present and is responsible for 14% of sales.
Although the Savills agency expects prices to fall by approximately 2% worldwide in 2021, Paris remains highly rated. In particular, the price gap in luxury real estate between London and Paris is now only 8%, whereas six years ago the gap was 40%. Prices in the French capital have risen faster than in other capitals.
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Paris West Sotheby's International Realty, expert in luxury and prestige real estate in Paris