Paris Luxury Property Market Sees Revival in Post-Election Period
The election of France’s most openly pro-business president has given a boost to the Paris luxury property market, with multiple sources reporting a rejuvenated clientele.
When Macron was elected many were unsure of what he meant for French property. He mixed pro-business sentiment with talk of a potential increase on property wealth, making it unclear whether he was good or bad news for those with high-end property in the capital.
This remains to be seen, but just the fact of his election has been held up as a factor behind a recent rejuvenation of the Paris luxury property market. Daniel Feau Immobilier, a luxury specialist real estate agency, recently spoke of such a rejuvenation.
“The climate has changed over the last month and a half. Foreign investors are looking at the luxury property market with a new gaze,” Charles Marie-Jottras, the agency’s president said, highlighting that, “for the past few years the supply of properties worth over two million euros far outweighed the demand; this is no longer the case.”
Properties valued between one and two million euros in the capital have seen 10.5% yearly growth, according to Feau’s statistics. The next rung, those priced betwee two and four million euros, have also performed well with 10% yearly growth. Those worth over four million euros are too varied for anything other than a case-by-case look.
As they play a big part in high-end transactions, foreign buyers are a signifant force behind this revival. Early June saw Notaires and real estate agencies report an increase in foreign buyers, especially British, as Macron’s election increased the value of high-end Paris real estate.
This time round, it is Chinese, Italian and American buyers cited as being the most significant presence among foreign clientele. That the demographics change from report to report is unimportant: these come from individual agencies and will therefore vary wildly. What is important is the general trend which points towards Macron’s election giving a boost to the Paris luxury property market.
A recent survey focused entirely on market sentiment points to similar conclusions about the current climate. One in two (49%) of buyers say that Macron’s election has increased the attractiveness of high-end Paris real estate, and there has been a 14% increase in French nationals living abroad interested in Paris property. The most sought-after regions are the Cote d’Azur (37%), the country (province, everywhere outside the major cities, 24%) and Paris (17%).
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