French luxury real estate is currently one of the most attractive markets in the world. After two amazing years in 2017 and 2018, the sector boomed in 2019. Professionals at Michael Zingraf Real Estate have detailed recent changes and trends within the market.
Luxury real estate: how has the market changed in France?
2017/2018: new-found momentum
Luxury real estate has always been a relatively healthy market in France. As a niche sector mostly spared by the economic context, the market suffered a few moderate years as of 2012. In 2017, sales volumes rose once again, making the market the third most attractive in France in the luxury sector. Building on this success, 2018 strengthened France’s position within the luxury market by increasing the number of sales by about 17% compared to the previous year.
2019: the most attractive luxury market in the world
Coveted by purchasers from all over the world in search for excellence, the sector recorded record property sales in 2019. Between January and June 2019, the market saw its transactions (and average prices) increase by more than 10% compared to the same period in 2018. This momentum placed France at the top of the rankings in terms of appeal.
The main changes that left their mark on luxury real estate in France
Several factors explain the bolstered momentum registered on the French luxury real estate market.
Foreign purchasers returned
International buyers have returned to France and its luxury market since 2017. Nowadays, over 25% of investors live abroad. Amongst them are a large number of Chinese and American owners, as well as people from the Middle East, Russia and elsewhere in Europe (Scandinavia, Germany and England, mostly). International buyers are particularly present on the secondary residence market, especially along the French Riviera and in Paris.
A dynamic secondary residence market
As opposed to the standard market, the secondary residence market is particularly dynamic in the luxury sector - a quarter of all buyers are looking for this type of property, as opposed to 10% on the standard market. Though international purchasers are extremely present on the market, we should also note a substantial increase in the number of French residents, who used to favour destinations abroad for their pied-à-terre properties.
Prestigious renown and safe markets
Luxury real estate has also benefited from the international renown of several French regions. This is the case for Paris, the French Riviera, Provence and the West Coast - all renowned thanks to their remarkable historical, architectural, cultural and natural heritage. These assets make the country a safe place for real estate investments; they also mean a large number of potential buyers can be charmed by the many lovely places and exceptional amenities on offer.
Are you looking to purchase an exceptional property in France? Michaël Zingraf Real Estate has a full catalogue of prestigious properties in Paris, Deauville, Provence and along the French Riviera. Browse through our offers online and find the very high-end house or apartment of your dreams. Our teams are available to support you through every step of your project.