Houses in the provinces serve as a lever for the luxury real estate market

Since 2021, the luxury real estate market has been very successful, largely thanks to the sales of houses in the provinces. Between January 2021 and the first half of 2022, new home insurance sales increased. This trend tends to continue, as evidenced by the volume of sales, which continues to grow.

For years, analysts have said that houses in the provinces serve as the main lever of the luxury real estate market. The period from January 2021 to June 2022 demonstrated this well. Buyers, including foreign ones, are more and more numerous. It is the whole of France that is concerned, with mountainous areas in mind, near the ocean or a lake. "Today, as heat waves are expected to be more and more frequent, there may be a desire on the part of our buyers to to cool off in the mountains. Around Lake Annecy, we have sold a lot of goods to Qataris”, Frank Sylvaire, CEO of Paris Ouest Sotheby's International Realty, says. Whether it's Courchevel or Chamonix, or the Arcachon basin, these destinations are on the rise. But even areas that would a priori be less appealing, such as Vieux-Lille or Marcq-en-Barœul, attract buyers. The watchword is “quality”. Indeed, buyers are looking for well-being and an environment that allows them to easily reach the capital.

With houses in the provinces as the main lever, the dynamism of luxury housing is assured. There is a big difference between supply and demand: Belles Demeures website shows a 10% drop in the volume of property ads. The sale of luxury goods has been accelerated and there are therefore few offers on the market, while buyers are numerous. Frank Sylvaire notes that “we should be at +20% or +22% over the year”. This phenomenon has led to a double-digit price explosion in favor of luxury houses, posting a 14% increase over the period from January 2021 to June 2022.

Read the whole article here

Paris Ouest Sotheby's International Realty, your reference for prestigious real estate in Paris