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French luxury real estate market up 10.6% since last year, Paris leading
Up 10.6% over the first six months of 2019, the French luxury real estate market grew 10 times faster than the traditional market.
Although the sun has been shining on the French real estate market over the past three years, the luxury market is where things are truly heating up. Over the first 6 months of the year, prices rose by a further 10.6% year-on-year, according to the latest figures from an annual study by Belles Demeures.
The average price of these luxury properties is 1.67 million euros, for a price per square meter around €7,760. By way of comparison, prices only increased by 1% in the first half of 2019 in the traditional housing market, for a price per square meter below €2,600.
“The luxury real estate market has witnessed 3 explosive years, both in terms of price and in number of transactions. The fundamentals are excellent, with low interest rates naturally contributing to this dynamic, while strong demand has contributed to price increases, which have reached record levels,” according to Kathryn Brown, Director of Operations for Paris Property Group.
Paris at the top
Paris still remains the showcase of luxury in France, but prices, already very high, are increasing at a slower pace than in the rest of the country. Up 3%, luxury properties are being sold at around €15,000 per square meter on average.
“Non-resident buyers are very present: foreign clients, already traditionally active, are increasingly present, and are often, but not solely, coming from London. In these conditions, it is clear that prices are still on an upward trend,” analyzes Nicolas Pettex-Muffat, Director of Féau.
Increases have accelerated in Hauts-de-Seine, with the support of cities such as Meudon, Suresnes, and Bois Colombes, where the price per square meter is lower. Prices are rising less quickly in the western suburbs of Neuilly-sur-Seine (+ 4% to €13,000/m2) and Boulogne Billancourt (+6% to €11,000/m2).
The west takes off
Regionally, le Grand Ouest is on the rise. Prices are taking off in well-known seaside resorts such as Cap Ferret (+10%), La Baule (+11%), Ile de Ré (+16%), and Biarritz (+6%).
“The Arcachon Basin with its legendary Cap Ferret has gone from being a regional destination to a global destination in less than 10 years. The market is very lively and receives strong international demand from French expats and the show business sector,” says Laurent Demeure, President of Coldwell Banker France & Monaco.
In the Southeast, increases are more moderate, with prices stabilizing in Cannes (+1%) and Nice (+4%) and falling in Saint Tropez (-8%). “After a period of sharp decline from 2007 to 2017, the Côte d’Azur market has regained strong market activity over the past 18 months in the midst of reasonable market prices, which were about 30% lower in 2018/2019 than in 2007,” emphasizes Thibaut de Saint Vincent.
Cover photo: pxhere