Despite the health crisis, France ranks first among the most attractive countries for the purchase of prestigious real estate, according to a study recently published by Belles Demeures.
While the years 2018 and 2019 have been fruitful for French high-end real estate, it could be feared that 2020 will be a complicated year.
However, it turns out that prestige real estate has resisted well to the health crisis.
According to the study Belles Demeures carried out last June, France is the most attractive country in terms of prestigious real estate with 34% of the votes. Followed by Switzerland (valued by 32% of respondents) and Portugal (cited by 28% of the panel).
Moreover, the study shows that the top-of-the-range real estate “Made in France” remains a sure value whose attractiveness radiates well beyond the borders.
The purchasers want to offer themselves a prestigious address.
According to the opinion of most specialists in the sector, what attracts future foreign buyers to France is not so much the exceptional services of the property itself, nor even the climate or the “French art of living”. It is above all the possibility of offering oneself a renowned address that symbolizes success.
Indeed, people choose to invest in real estate, because becoming the owner of a house, apartment or mansion in the beautiful districts of Paris (place Vendôme, avenue Montaigne, with Victor Hugo, avenue Foch…) gives the impression of entering the sphere of luxury.
Of course, cities such as London, New York, Dubai or Hong Kong are renowned in this niche market.
However, in this field, we must recognize that France, and more precisely Paris, is a reference that cannot be ignored!
“Foreign buyers are currently unable to come to France. This makes the market less tense for certain types of assets and in certain neighborhoods, in the hyper-luxury segment. That doesn’t mean you need to worry! Consultations from abroad on our websites are up nearly 60% compared to the same period last year,” notes Nicolas Pettex, Managing Director of the Daniel Féau network.
However, the qualification of prestigious real estate requires several conditions to be met.
Namely, an exceptional location (Place Vendôme, Bay of Saint-Tropez, first line of the Arcachon basin, Paris, the French Riviera…).
Then, exceptional services (a breathtaking view, a garden in the heart of Paris, an infinity pool …).
But also a high price.
And finally, rarity. Because if all properties are exceptional, none of them really are.
So it’s not surprising that France is in great demand!
Goods at exorbitant costs
According to the Baromètre des prix de l’immobilier de prestige Belles demeures, a prestigious property costs, on average, €15,400 per square meter if it is located in Paris.
To become the owner of a premium home in Neuilly-sur-Seine or Boulogne-Billancourt, you will have to pay €13,460 and €11,000 per square meter respectively.
Whereas the price of a premium housing is around 10 500 € per m² in the Hauts-de-Seine region, it is limited to 6 310 €/m² in the Yvelines region.
It is in this department in the west of Paris that prices have risen the most, with an annual gain of 14%.
“While we are emerging from a destabilizing period, that foreigners are unable to visit, and that a significant proportion of wealthy Parisians have not returned to Paris or have already left, the market remains dynamic,” notes Nicolas Pettex, Managing Director of Daniel Féau agencies.
Prestigious real estate, a sure value on the international scene
High-end real estate in France is unquestionably the result of reputable and more risky investments such as vineyards, contemporary art, crypto-currencies or the stock market, which has been hard hit by the Covid-19 crisis.
In a context of health and economic uncertainty, investing in the long or medium term in prestigious French real estate is a sure value.
And if there are fewer people than before investing in luxury real estate, it would seem that foreign buyers are gradually making their return to France.
“Belgians, Germans, Dutch are preparing many visits and requests from all over the world come to us. The French provinces are among the cheapest of all neighboring countries. All regions are in demand,” says Patrice Besse, head of the network that bears his name.
Featured photo: © Daniel Féau
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