LIFE BEYOND FIRST CLASS
FINANCE
GILDED
GROWTH
France's luxury real estate market shows remarkable resilience with rising prices and strong international demand, particularly in Paris and the Côte d'Azur, despite broader economic challenges.
GABRIELLA THOMAS
In the face of economic challenges and fluctuating interest rates, France's luxury real estate market has demonstrated remarkable resilience. Despite a downturn in the traditional property market, the demand for prestige properties remains robust, reflecting a clear distinction in market dynamics.
An exclusive study by Belles Demeures reveals that while existing properties have faced price declines due to tightening credit conditions, the luxury segment has experienced a price increase of 1.7% over the past year, compared to a 2.5% drop in the traditional market. This upward trend in the luxury market is evident across various regions in France, emphasizing the enduring appeal of high-end properties.
Paris continues to lead the luxury market with a substantial 33% of high-value transactions. Exceptional properties in Paris have seen median prices of €1.7 million, with ultra-luxury properties reaching up to €4.2 million. The 16th arrondissement, in particular, dominates with 30% of the ultra-luxury market, boasting a median price of €4.7 million.
The Côte d'Azur, known for its glamorous appeal, has maintained strong demand, with median prices for luxury homes at €2.2 million and significant properties in Saint-Tropez peaking at €6.7 million. Provence has seen a notable 7.2% increase in property prices, with the median price for luxury homes at €1.75 million. The town of Saint-Rémy-de-Provence stands out with a median price of €2 million. The alpine region has recorded the highest year-on-year increase of 8.1%, driven by the allure of chalets in areas like Courchevel, where the median price is €7.2 million. Both the Atlantic Coast and Normandy have shown steady price increases, with luxury homes in Cap Ferret priced at €2.2 million and Deauville at €1.5 million.
The luxury real estate market's resilience is attributed to several factors. The premium clientele in the luxury market is less affected by rising interest rates, with 54% of surveyed potential buyers indicating no impact on their purchasing plans. Paris and the Côte d'Azur continue to attract international buyers, particularly from the United States and Asia, driving significant sales and maintaining market stability. There is a strong preference for turnkey properties, with 60% of buyers willing to pay a premium for homes requiring no additional work.
The outlook for France's luxury real estate market remains positive, despite the broader economic challenges. The market is expected to continue attracting high-net-worth individuals seeking both investment opportunities and lifestyle enhancements. The stability in luxury property prices, coupled with the enduring appeal of regions like Paris and the Côte d'Azur, positions France as a prime destination for luxury real estate investments.
As traditional property markets grapple with economic headwinds, France's luxury real estate sector stands as a testament to resilience and enduring appeal. With continued demand from both domestic and international buyers, the luxury market is poised for sustained growth, offering lucrative opportunities for investors and a stable refuge for high-net-worth individuals.
For more information and detailed market insights, visit www.bellesdemeures.com
