- Rising interest rates
- Difficulty in accessing credit
- Inflation
- International crises
- Obligation of energy renovation
- Social tensions
- Generalized increase in property tax, charges and work costs
-> Lengthening of the marketing delays: from 3-4 weeks to 2 months for the badly "priceless" properties (according to the intrinsic qualities)
-> Hesitation and return to the sale of properties often at lower marketing prices (20% of accepted offers do not convert into a promise even though we do a substantial amount of due diligence work upstream, on the buyer's side). In other words, hesitation, fear and wait-and-see attitude.
-> General price decrease of about 10%, accentuated by inflation.
We find ourselves in a situation where the estimate is the essential element of the good progress of the marketing.
- Constrained transactions (moving, divorce, death, debts)
- Cash purchases (no credit) - Lots of cash still available (//collection of Livret A & Life Insurance)
- Apartments property "priceless
- Real estate remains a safe haven and occupies a prominent place in the wealth of the French. It represents 68% of their net wealth. Paris is chosen to secure and diversify its assets.
- Paris: a brand image that remains unaffected by crises
- Paris continues to appeal thanks to its heritage and culture. The demand does not weaken
- Sectors that are doing very well (luxury, energy, logistics)
- Continued scarcity of flawless properties: represent less than 5% of the market and very short marketing times.
- Paris is in 1st place among the most sought-after cities for UHNWIs ("Ultra High Net Worth Individuals").
These individuals have assets exceeding €27 million. A Parisian property with a view of a famous monument has become the ultimate quest of these buyers
- The fundamental criteria have become essential, as a prerequisite in luxury: location, building, exterior floor, unobstructed view, ceiling height
- Luxury real estate continues to rise and reach new heights
- Price perm2 over 30 000€ frequently exceeded
- Parisian real estate is not increasing. It is frozen.
- Sellers don't give in and downplay the price drop
- Buyers are overly anticipating price declines
-> There is a 5 to 10% time lag
-> The intermediary's primary role is to advise and educate in order to reconcile supply and demand
Energy renovation
- At the heart of the issues, especially for rental properties
- Marketing of F and G properties is difficult
Conclusion:
A market with opposing currents but which is generally oriented downwards. The market is not static and the role and quality of the intermediary becomes paramount.
