Knowledge and Resources
The French luxury real estate market, particularly in cities like Paris and regions such as the Côte d’Azur and the French Alps, represents a robust and attractive investment realm for high-net-worth individuals. This market segment has shown resilience and growth, even in the face of global challenges such as the pandemic. With a 9.2 percent increase in average price per square meter in Paris for assets exceeding €3 million, the luxury sector exhibits a persistent appetite for high-end properties that are considered safe haven investments.
Key investment zones in France for luxury real estate include Paris for its rich culture and vibrant economy, the Côte d’Azur for its climate and Mediterranean allure, and the French Alps for its winter sports appeal. These areas not only promise good yields but also have long attracted foreign property investors, indicating a sustained demand. Despite concerns like climate change or high entry prices, these regions remain solid investment choices.
The luxury market in Paris has seen a shift in buyer demographics post-2020, with a reduction in international buyers from the United States and China due to travel restrictions, but an increase in European and French buyers, especially those returning from the UK in anticipation of Brexit. These local buyers now represent three in every four sales for properties over €3 million, underscoring a significant shift towards domestic clientele.
Moreover, there’s been a trend towards developments centered around leisure facilities, such as golf courses, appealing to a lifestyle-oriented clientele. The investment in these types of properties should be made with careful consideration of the surrounding amenities and accessibility to ensure a comprehensive luxury experience.
The Parisian luxury market, however, faces a structural imbalance due to a supply shortage, particularly because of the absence of new builds, while demand, both national and international, remains strong. This imbalance is not expected to change in the short to medium term, and the demand is likely to continue to exceed supply, further driving the exclusivity and desirability of luxury real estate in Paris.
Investing in French luxury real estate, therefore, taps into a market characterized by its stability, resilience, and sustained high demand, making it a prime choice for discerning investors looking for a blend of lifestyle and secure investment returns.
Please Note: This article is for informational purposes only and does not constitute legal or financial advice. Always consult with a qualified professional when making decisions related to your personal finances or legal obligations