Roche & Cie

Point on luxury real estate in the first half 2016.

23 Jun 2016

“Six months ago, we mentioned the end of the wait, today we have clearly entered a market characterized by a strong demand facing a lows supply.” says Charles-Marie Jottras, President Daniel FEAU group.

At the end of the first semester, several agents of high-end networks mention  even having already achieved the annual turnover of last year.

In Lyon, where Barnes has opened an office for a year and a half is the same euphoria.

“2016 started very well, rejoices Thomas Vantorre, its director. We are now at 90% of the goal of the year.

Despite the revival of the luxury real estate activity, as in 2015, prices remain stable. Many sales are made at the price of office, which seemed impossible two years ago. The market appears again tilt in favor of sellers.

Note that French buyers, including expatriates, animate the luxury market and the ultra-luxury, this year.

And although no city is immune, Paris has clearly been “shunned” by foreign investors due to the attacks of 13 November and continuing protests in recent months.

Property between 2 and 3 million sell best

The high-end market, is overall dynamic, the segment of slightly less luxurious property is the most popular. In the capital, the bourgeois apartments between 130 and 180 square meters, with three or four bedrooms, in high and clear floor are in demand. If they have in addition a view, a terrace or balcony, they are sold very quickly. Conversely, dark houses, on the ground floor or facing a courtyard, and which need some work, have trouble finding takers and remain on the market for months ….

The ultra luxury segment (villas or apartments from 6 to 7 million euros) is also doing well.

However, the segment of goods between 4 and 5 million euros suffers because “it is too expensive for the French, who have money but do not have enough exceptional properties for wealthy foreigners. “According to Richard Tzipine, CEO of Barnes.

We can justify this recovery by that financial investments are very low paying. The acquisition of the main residence is increasingly perceived as a safe haven.

Neuilly-sur-Seine, Boulogne and Saint-Cloud in vogue

In Paris, the most coveted neighborhoods remain, unsurprisingly, those on the left bank and some areas of the right bank. Several luxury networks also show a strong increase in activity in the Hauts-de-Seine for six months, including Neuilly-sur-Seine, in Boulogne-Billancourt and St. Cloud.

Thus, the turnover of the Daniel FEAU’s agency in Neuilly-sur-Seine has increased of 30% in 2016. That of Saint Cloud has increased 120% over the same period. “With a delay time from the capital, explains Richard Tzipine, sellers have agreed to adjust their selling price to the market reality. “