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Luxury Real Estate: Sales are expected to jump in 2018

Luxury Real Estate: Sales are expected to jump in 2018

Xerfi’s last survey, announced that the luxury real estate market keeps increasing in France. After an explosive growth in 2017, this sector will remain on track in 2018 with a gross of 17% in 2018.

September 6th, 2018 | Marguerite

Photo: Xerfi

According to Xerfi’s survey, published on July 17th, the real estate market has been blooming for the past two years. Indeed, the annual sales report was up to 15 % in 2017 and should raise up to 17% by the end of 2018.

Emmanuel Macron’s election, the increase of a wealthy population and international customers are major reasons testifying the success of the luxury real estate market for the past two years. The Brexit and the future Olympic Games in 2024 have also turned Paris into a more attractive city.

By improving their annual sales by 25% in 2017, the capital of France is now, in front of London, the second world best city to live in according to the luxury market. New York is still the first one.

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However, the market research’s analysis reports a bleaker future in the next few years with a decrease of the annual sales in 2019 and 2020. The annual growth could possibly falls around 5% in the following years. As a matter of fact, the imbalance between supply and demand puts the buisness in a difficult situation, especially in target areas, but more importantly the competitive digital economy takes over. Regarding seasonal rental, Airbnb launched a new offer called « Beyond », a more prestigious range : luxury houses, multiple services such as a caretaker’s lodge and an organized trip.

Therefore, Xerfi highlights the need of the market to improve their digital communication. With the use of social media, the most traditional agencies such as Barnes or Sothebys, would be able to seduce a younger generation of customers, wich is today attracted by new platforms such as Onefinestay.

In France, the real estate market is led by several major companies which are Emile Garcin, Daniel Féau and Michel Zingraf. The parisian market is the most influent one, yet the South-West of France stays dynamic and is becoming more and more appealing for the Nordics. According to Jean-Christophe Hym (Europa group) « The French riviera remains very seducing . The sea, the sun, the inland, the old villages, the entitlements, and the sustainable offers are our key advantages. »

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