France's prestige real estate market to post "surprisingly good results" in 2023

Despite a challenging economic environment, marked by inflation, rising interest rates, tightened credit conditions, the depreciation of the euro, and the situation in Ukraine, Sotheby's International Realty France-Monaco has recorded surprisingly positive performances in the first eight months of the year. The President and CEO of the company, Alexander Kraft, noted that 2023 appears to be robust, with a sales volume exceeding 1 billion euros since January. Transactions in the luxury segment have multiplied, with selling prices reaching up to 50 million euros. However, negotiations are taking longer, and buyers have become more selective, favoring exceptional properties.

Foreign buyers, especially from the United States and the Middle East, continue to invest in French luxury real estate due to the strength of the dollar. The luxury real estate market remains attractive due to reduced prices, numerous available offers, stable interest rates, and the perception of real estate as a safe haven. Real estate activity remains strong in all regions of France, with exceptional sales.

Outlooks for the end of the year are cautiously optimistic, despite the possibility of a slowdown after three years of growth. The two-speed market is expected to continue, with high-quality properties selling well, while others with flaws will see their prices decrease. French fortunes, especially in the high-end segment, will continue to invest in real estate as a safe haven. Ultimately, luxury real estate remains a solid option for savvy investors.

Read the article here