While the real estate market has slowed down significantly since the beginning of the year, luxury real estate is holding firm.
Engel & Völkers France today publishes its new Market Update (Paris, Bordeaux, Lyon, Côte d’Azur & Franchisees)
To remember
In France, the market has slowed down significantly since February: rising rates (around 3.4%), international tensions, ambient uncertainty, with a decline in transactions of around 5% now expected over the year. Bucking this trend, Engel & Völkers France posted a growth of more than 30% in its turnover at the end of June and relies on nearly 400 agents, present in more than 35 countries.
In Paris, prime markets are becoming more polarised. In the 7th, the agency signs +40% of mandates, with transactions of up to €30,000 / m² around the Champ-de-Mars; in the Faubourg Saint-Honoré, the very high-end is traded between €15,000 and €30,000 / m², a private mansion listed at €20 million collecting offers around €15 million.
On both the right and left banks, demand remains there. Le Marais has totalled some 110 mandates since January and +20% of offers accepted in the last quarter ; on the left bank, the agency recorded +160% turnover, with 98% of the 6th foreign clientele above €3 million (up to €30,000 / m² rue Jacob).
In the north of the 16th, a safe haven par excellence, mandates jumped by 40% and the average basket reached €2.4 million, driven by an international clientele (40%) who are less looking to speculate than to secure.
Bordeaux is making its debut in this edition. The market is normalising around €4,000/m² in median in the inner city (up to €9,000/m² for exceptional properties in the city centre), driven by the return of international buyers (Americans, Canadians, Dutch).
On the Côte d’Azur, where more than 75% of buyers are international, Engel & Völkers posted +76% revenue. In Saint-Jean-Cap-Ferrat, second homes account for 78% of sales; in Cannes, the Croisette climbs to €40,000 / m²; in Saint-Tropez, the median price reaches €38,000 / m².
Nice is an exception. While the FNAIM anticipates a national decline of 5%, the city holds an average price of €5,600 to €5,700 / m², and 60% of transactions are concluded without a loan condition precedent.
In Lyon, the recovery is clear. Prices are stabilizing (median of €5,400/m² in the 6th, €6,900/m² around the Parc de la Tête d’Or), demand is refocusing on turnkey housing, and the west of Lyon is the dominant destination for houses, where the million euro mark is easily exceeded.
The network of franchises is growing, from Normandy to the Luberon. Four locations are already operational in the high-end heritage territories: Deauville (seafront up to €15,000/m²), Chamonix (up to €24,000/m² on the very high-end market), Samoëns and the Luberon (up to €15,000/m² for prestigious properties in the Golden Triangle).
The Rental department posted its best half-year: +30% in turnover in one year, driven by a move upmarket in applications and rents exceeding €10,000 / month for an international clientele.
