Paris new global luxury real estate capital?

Paris is one of the few capitals to have a growing market.

What’s this place about?
Buyers are increasingly demanding and the luxury market is gaining in territory. According to Savills, sales of more than 2 million euros jumped by 27% in the space of a year, those of more than 4 million euros get 33%, which can lead to sales of up to 40,000 €/m².
Foreigners are reconnecting with Parisian real estate (+1% in 2019) even if the latter remains 84% owned by French people.
 
How is this trend explained?
According to Knight Frank’s study, this is primarily due to economic stability, low interest rates and higher demand than supply.
Paris has beautiful days ahead of them thanks to the various major projects, the Olympic Games in 2024 and “Grand Paris”. Which will give a sporting boost to the city as well as a greater ease of access to the heart of the capital for investors in the suburbs, good news for the suburbs of Western Paris!


As for the other capitals …

Arriving behind Berlin in 2019, which had recorded +6.5% of the luxury real estate market, Paris will be at the top of the ranking of price increases in the upscale, with a forecast of +7% against +5% for Berlin and Miami as well as +4% for Sydney and Geneva, according to Knight Frank. This will only confirm the momentum of the Parisian market with an increase of +4.3% in 2019.
There is also a stabilisation of the London market +1%, as for New York, the prestigious real estate market pays the price of mass housing construction in recent years, -3% forecast for 2020.
Maxime Gondoux
Admin at Prestige MLS

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