If prices are starting to fall on the “classic” Parisian real estate market, this is not the case in ultraluxury: prices are still on the rise, note professionals in this sector. “Within 6e7e8e and 16e boroughs, the prices are stratospheric, we even exceed 30,000 euros per square meter for turnkey properties, without work”, notes Leonard Cesari, associate director of the Mobilis Group. Exceptional properties that do not know the crisis, provided that they meet the international standards of hyper high-end real estate: “We are talking here about a 200 square meter pied-à-terre with a terrace, air conditioning and a nice view”, says Nicolas Pettex-Muffat, Managing Director of Daniel Féau Real Estate Council. ” This popularity of ultraluxury dates from the release of the Covid,” he continues, adding to sell “ twice as many goods beyond 3 million euros than before the pandemic”.
This is because foreign buyers are investing again in Parisian stone. Especially since the exchange rate is clearly favorable to the dollar against the euro. Thus, 33% of properties currently sold by the Barnes network in the Marais district are sold to foreigners. In the 8e arrondissement, the share of international customers reaches 30% when it is 25% in the 7e arrondissement and 20% in eastern Paris.
“It is mainly Americans who are buying in Paris today”, says Frank Sylvaire, associate director of Paris Ouest Sotheby’s Realty. A demanding clientele who abandons goods with works, “unless there is great potential on the property and the price offered takes into account the budget for the works and the time required to carry them out”nuance Iris Tang, director of Emile Garcin Rive Droite.
Without works, except…
Indeed, as in traditional real estate, luxury buyers no longer intend to pay a high price to acquire goods that have defects. “As soon as an accommodation is located on the first floor, has no terrace, is located in a noisy neighborhood or lacks light, prices are negotiated downwardsobserves Mr. Cesari. And when the owner does not agree to lower the price, the sales delays can reach two to three months. »
For high-end housing at less than 3 million euros, on the other hand, buyers are more sensitive to changes in property prices and credit rates. Negotiations are going well and the energy performance of housing sometimes even becomes decisive. These are all elements that densify the supply of goods on the market. In the Marais, for example, inventory of apartments for sale at Barnes rose by 8% over one year. “Apart from ultraluxury, which is protected, prices are settling for properties under 3 million euros, and the market for this category of property should start to turn around in 2023”anticipates Mr. Sylvaire.