High-end real estate benefits from inflationary environment, Actualité/Actu Immobilier

Another example of the appeal of real estate in an inflationary period, the Daniel Féau network of real estate agencies, which specializes in prestigious properties, has seen a sharp increase in transactions since the beginning of the year. From January to April 2022, property sales in Paris and the western suburbs surpassed the already high levels of the first quarter of 2021, both in the €2-3 million price segment and above €3 million . The figures also came back well above 2019 volumes before the pandemic.

The sesame from an outer space

Market times for pristine Parisian apartments with outdoor space have never been shorter and prices are on the rise. Without the sesame of an outdoor space, impeccable products exhibit prices” broadly stable, at a high level “. This 132 m² flat in the 16th arrondissement of Paris stands out, sold last March based on a presentation price of 3.7 million euros. Or this 167 m² 3-bedroom flat with views of the Champs- de-Mars and the Seine exhibited 5 million As for products with defects (low floors, noise pollution, lack of clarity), the marketing period is lengthened instead and prices fall.

In the provinces, the number of sales has decreased slightly compared to last year, but Féau does not attribute this to a weakening in demand: the markets in the south and on the Normandy coast are experiencing a shortage. very quickly at sharply rising prices.

Anticipation of higher rates

The Féau group has slightly fewer buyers (10% less than in 2019), but more motivated. Indeed, many are sensitive to rising lending rates due to the inflationary environment and are willing to borrow as quickly as possible in anticipation of this continuing movement.

daily enjoyment value

The high multiples and volatility seen in the equity market encourage them to prefer stone in their personal asset allocation. “, also underline the leaders of Féau. Finally, the dimension safe investment of the stone continues to play in the current context and is even reinforced by a ” daily enjoyment value » which is manifested by the desire to allocate a greater part of one’s assets to the place where one lives every day.

The return of international clients, especially North Americans, is still considered timid, but the appetite for Paris and a very favorable dollar price seem to prevail for the moment in the face of concerns related to the war in Ukraine.

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