French buyers return to the Paris luxury real estate market
Very wealthy French buyers are returning to the niche market of luxury real estate in Paris, a sector that is improving thanks to stabilized prices and an improvement in market conditions.
Real estate is a safe haven for foreign investors and French buyers alike, with the latter returning to the luxury and super-luxury sectors of the market and even surpassing their non-French counterparts in numbers of purchases of high-end goods.
Charles-Marie Jottras, the CEO of luxury real estate agency network Daniel Féau — which is part of Christie’s International — notes that “for six months we have been finding that the super luxury real estate buyers in France are predominantly French.”
The market is indeed currently chiefly “carried by the French — be they residents or not — than by foreigners” from the Gulf and Middle East, the United States or Europe, who are traditionally the main buyers of high-end property in the French capital.
Over the last few months, the Daniel Féau network has sold 10 goods with values going from 10 to 31.5 million euros — and with prices per square meter ranging between 15,000 and 31,000 euros — and in 7 out of 10 cases, buyers were French — though just two were fiscal residents.
The largest of these transactions, widely covered by the media, was the purchase of the Hôtel Coulanges by Xavier Niel, the head of the “Free” network operator for 31.5 million euros. The 2,300m2 mansion, which is located on place des Vosges in the historic Marais, is known for being the childhood home of famed 17th century author the Marquise de Sévigné.
“Previously, it was mostly foreigners who had this type of budget,” explains Nathalie Garcin, the co-director of the Emile Garcin agency. Like the rest of the real estate market, the luxury sector is carried by low interest rates, stable prices and a “catch-up effect after several years of buyers deferring their projects,” and a sense that the country’s economy is doing much better.
This has allowed luxury real estate agencies Daniel Féau and Belles Demeures to record an 18% increase in their turnover while family network Emile Garcin noted a rise of 30% in its turnover since the beginning of the year.
Photo credit: Poulpy