LUXURY REAL ESTATE IN FRANCE: UNINTERRUPTED GROWTH IN THE 1ST HALF OF 2023

While the global economy is experiencing shocks and uncertainties, the luxury real estate market in France continues to display exceptional resilience in the first half of the year, as evidenced by the dynamics of specialized networks such as Coldwell Banker Realty , Engel & Völkers , Mercury Group Forbes Global Properties And Sotheby's International Realty . A dynamic already displayed in the 2022 reports, where, for example, a group like MERCURY Forbes GLOBAL PROPERTIES closed the year with results up +22%.

This trend raises questions about what is fueling this persistent growth. In this article, we will analyze the key factors that maintain and stimulate the luxury real estate market in France this year, based on numerical data and examples of emblematic cities.

The Advantages of Luxury Real Estate in France

France has always been associated with luxury, refinement and the art of living. During this first part of the year, these elements persist and continue to attract investors and wealthy buyers looking for exceptional real estate. Here are the reasons that explain this positive dynamic:

1. Economic and Political Stability : France benefits from relative economic and political stability compared to many other destinations. This stability inspires confidence in investors, who consider France as a safe market for their capital.
2. Exceptional Quality of Life : France offers an exceptional quality of life, with its renowned cuisine, rich cultural heritage, diverse climate and picturesque landscapes. These assets make France a destination of choice for those looking for a unique lifestyle.
3. Investment Incentive Programs : France offers various attractive programs for foreign investors, including visa and residency opportunities, making real estate investment easier for non-residents.
4. Solid Economic Growth : Despite global economic challenges, France has maintained stable economic growth, which attracts domestic and international investors.

Eloquent Figures

Paris, the French capital, remains at the top of the luxury real estate market. In the most prestigious districts of the city, certain areas reach average prices per square meter of around 25,000 euros, recording an increase of 7% compared to the previous year over the same period.

The Côte d'Azur, famous for its sandy beaches and Mediterranean climate, is also in high demand. Cities like Cannes, Nice and Saint-Tropez are seeing their luxury real estate prices increase significantly. The average price of a luxury property on the Côte d'Azur now ranges between 10 and 15 million euros.

In Provence, the demand for Provençal wine estates and farmhouses continues to grow. Vineyard property prices increased by 15% in 2023. Like the acquisition of Domaine Minuty, a Grand Cru Classé from the St Tropez Peninsula by Bernard Arnault, considered the deal of the year in the sector. The amount of the sale remained confidential, even if the sum of 350 to 450 million was mentioned by the neighborhood according to Challenges .

The Bordeaux region, renowned for its vineyards, also attracts wealthy wine lovers. Vineyards with historic châteaux are selling at premium prices, and demand for luxury properties in Bordeaux remains strong.

However, growth is not limited to traditional destinations. Cities like Lyon, Toulouse and Marseille are gaining popularity among luxury property buyers. For example, Lyon recorded an overall increase of 4% in luxury property sales in the first half of the year. In detail, the prices recorded for exceptional real estate by MERCURE Forbes GLOBAL PROPERTIES in the 2nd and 6th arrondissements of Lyon have increased by more than 6%. The real estate market is also boosting the outskirts of Lyon, such as Tassin-la-Demi-Lune, Ecully, Saint-Cyr-au-Mont-d'Or and Champagne-au-Mont-d'Or, which attract a wealthy clientele and more in addition to liberal professions, wishing to settle in beautiful residential areas.

Underlying Trends

Several underlying trends contribute to the growth of luxury real estate in France in 2023:

1. Search for Security : France is perceived as a safe place, particularly compared to some geopolitically unstable destinations. Investors are looking for security for their assets and their families, which makes France an attractive option.
2. Demand from International Buyers : France attracts international buyers, particularly from China, the United States and the Middle East. These buyers are looking to diversify their real estate portfolios and invest in stable markets.
3. Luxury Tourism : France remains one of the most popular tourist destinations in the world. Investors view luxury real estate as lucrative vacation rental opportunities, particularly in Paris and the French Riviera.

Examples of Growing Cities

1. Paris : The French capital remains the central point of the luxury real estate market. THE 7th , the 11th , the 16th district, the Marsh , the Golden Triangle or even the neighborhoods Germanopratin And Military school are particularly popular.
2. Cannes : The city of Cannes, on the French Riviera, is world famous for its film festival. Luxury villas on the Croisette and in the surrounding hills attract wealthy buyers looking for exclusive vacation homes.
3. Lyon : France's second largest city, Lyon, is growing in popularity as a destination of choice for luxury real estate investors. The Presqu'île district is particularly sought after, with its historic apartments and views of the Rhône.

In conclusion, luxury real estate in France at the start of 2023 is successfully maintained thanks to a set of favorable factors. Economic stability, exceptional quality of life and international demand are all elements that contribute to the continued growth of this market. Although Paris remains the central point, other French cities are also seeing their attractiveness grow. The ability of market operators to continue to strengthen their increasingly personalized and differentiating service offerings will also undoubtedly be one of the keys to the continuation of this trend.

Paris, September 18, 2023 -

By Yoan Bastos, President of the international consulting firm Stratège ®