Sotheby’s: French luxury real estate is not in crisis

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Despite the complicated global economic situation, the war in Ukraine and inflation, luxury real estate in France had a record year in 2022.

 

The luxury real estate does not know the crisis, what the actors of the market did not expect. Sotheby’s International Realty, the world leader in luxury real estate, has just published its results and it is clear. The year 2022 was great, much better than 2021, which itself was already higher than 2020.

 

With a record sales volume of 1.61 billion euros, we have once again surpassed the historic record results of 2021. (…) These results are above what could be expected and show that the prestige real estate market remains a safe haven and an alternative investment in difficult times,” said Alexander Kraft, CEO of Sotheby’s International Realty France-Monaco.

 

Nearly 1,000 high-end sales were made by Sotheby’s International France-Monaco group agencies. The average price of a sale was 1.67 million euros, up 15% compared to 2021. This growth is due to record transactions, with strong demand for exceptional properties in the provinces and in Paris, as well as the return of international buyers. The network’s French agencies generated total revenues of more than 1.6 billion euros, 11% more than the previous year.

 

Paris and all of France

 

The French are reconciling with luxury real estate. Whether it’s an apartment in Paris, a house in the south of France or a second home, the ultra-high end has regained its aura.

 

According to the Sotheby’s France-Monaco division, in Paris, sales range from 10 to 50 million euros. On the Côte d’Azur, which is highly prized by international clients, they are between 5 and 15 million euros: “We have seen the strongest increase in budgets for several years, with record sales in all regions, which is due in particular to the return of foreign buyers to the French market this year,” says the CEO of the French subsidiary.

 

Slight slowdown at the end of 2022

 

However, Alexander Kraft acknowledges a slight slowdown towards the end of 2022, with a sales volume at Sotheby’s of nearly 392 million euros in the fourth quarter. According to him, this is a sign that the market is normalizing.

 

After the end of the health crisis, foreign tourists and potential buyers have not hesitated to pack their bags to be in France in search of renewal.

 

According to the CEO, “we have seen since the spring of 2022 a return of foreign buyers who benefit from the possibility of travel and a strong dollar against the euro. We expect to see a continued increase in this phenomenon. We see a two-speed market on the horizon: the normal prestige market dominated by the French, which will slow down due to blocked files by banks and less liquidity from clients, and the high-end prestige market, which is more resilient to the current challenges because it is supported by savvy investors with significant liquidity and a willingness to take advantage of alternative investments“.

 

The most represented nationalities among international buyers are the Swiss, Germans, Scandinavians and recently, Americans. They are more present than French clients on the luxury real estate market because they have a larger budget, between 3 and 20 million euros. On the other hand, English buyers are missing.

 

Read also >Engel & Völkers : a report on the luxury real estate trends of tomorrow

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Despite the complicated global economic situation, the war in Ukraine and inflation, luxury real estate in France had a record year in 2022.

 

The luxury real estate does not know the crisis, what the actors of the market did not expect. Sotheby’s International Realty, the world leader in luxury real estate, has just published its results and it is clear. The year 2022 was great, much better than 2021, which itself was already higher than 2020.

 

With a record sales volume of 1.61 billion euros, we have once again surpassed the historic record results of 2021. (…) These results are above what could be expected and show that the prestige real estate market remains a safe haven and an alternative investment in difficult times,” said Alexander Kraft, CEO of Sotheby’s International Realty France-Monaco.

 

Nearly 1,000 high-end sales were made by Sotheby’s International France-Monaco group agencies. The average price of a sale was 1.67 million euros, up 15% compared to 2021. This growth is due to record transactions, with strong demand for exceptional properties in the provinces and in Paris, as well as the return of international buyers. The network’s French agencies generated total revenues of more than 1.6 billion euros, 11% more than the previous year.

 

Paris and all of France

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Despite the complicated global economic situation, the war in Ukraine and inflation, luxury real estate in France had a record year in 2022.

 

The luxury real estate does not know the crisis, what the actors of the market did not expect. Sotheby’s International Realty, the world leader in luxury real estate, has just published its results and it is clear. The year 2022 was great, much better than 2021, which itself was already higher than 2020.

 

With a record sales volume of 1.61 billion euros, we have once again surpassed the historic record results of 2021. (…) These results are above what could be expected and show that the prestige real estate market remains a safe haven and an alternative investment in difficult times,” said Alexander Kraft, CEO of Sotheby’s International Realty France-Monaco.

 

Nearly 1,000 high-end sales were made by Sotheby’s International France-Monaco group agencies. The average price of a sale was 1.67 million euros, up 15% compared to 2021. This growth is due to record transactions, with strong demand for exceptional properties in the provinces and in Paris, as well as the return of international buyers. The network’s French agencies generated total revenues of more than 1.6 billion euros, 11% more than the previous year.

 

Paris and all of Francereal estate

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The editorial team
The editorial team
Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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