According to a study on the trends and forecasts of the high-end real estate, unveiled on 23 June, 47% of future buyers interviewed share the feeling that the arrival of Emmanuel Macron at the Elysée palace will participate to the attractiveness of Paris and France. Reactions of the main market specialists.
Emmanuel Macron doperait-it already the market of high-end real estate ? According to the study* of the specialist of the market of real estate of prestige, Lux-Residence.com unveiled on June 23, 2017, the election of Emmanuel Macron at the Elysée palace on may 7 is going to “boost” the economy on the segment of high-end real estate. It is, also, of the first echo, the main specialists on the market, as Barnes, Coldwell Banker France & Monaco, Group Daniel Feau, Emile Garcin, John Taylor, and Patrice Besse.
This study on “trends and forecasts” of the high-end real estate, therefore, reveals that 47% of buyers surveyed say they are more confident about the future of the economic context of French, an increase of 23% in 6 months. “They are also the 47% to share the feeling that the arrival of Emmanuel Macron to be able to participate to the attractiveness of France on the market of real estate of prestige international”, said a specialist of this market.
To a return of the market since the first round of the presidential elections in 2017
“Completely stable in 2014 and 2015, this market is, including income on the front of the stage in Paris and, in particular, relating to the sales of approximately 4 million euros, and from the results of the first round of the presidential election between Emmanuel Macron to Marine Le Pen, says on Friday Jean-Philippe Roux, director of the paris agency of the group, John Taylor. The main reason for this renewed activity ? “Insurance to keep borrowing rates (2%) very low at least for a year motivates in particular the French buyers, residents or expatriates whose budget exceeds 4 million euros”,he adds.
To a certain wait-and-see on the tax measures coming from the government of Edouard Philippe ?
When asked about the proposed Tax on the real Estate asset that it could have on their project to purchase a property of prestige, 61% consider that there will be an impact and expect to learn more about the timeline proposed by the new government to be reassured. “This customer premium is relatively opportunistic, but also cautious, reports the study. Only a clear announcement of the new tax policy of Emmanuel Macron will be able to dispel the doubts of the buyers the most recalcitrant.”
In detail, on the profile of these buyers, the study reveals that nearly 8 buyers out of 10 are over 50 years old and 27% have annual incomes greater than 200,000 euros.
“If 55% are still in business, they are 32% interest in the purchase of a secondary residence (an increase of 7 points compared to the end of 2016)”, complete-t-it. Budgets are also on the rise because they are now a majority (57%) to look for the goods the price of which exceeds € 1.5 million.
This is often a workforce that is more mature and multipropriétaire, which prepares for his retirement, ” explains Séverine Amate, director of Communication at Lux-Residence.com and a spokesperson for the study. In this respect, we observe, a resurgence of interest in the Côte d’azur is one of the regions most sought after (36%), followed by Provence (24%), the capital arriving, as to it, in 3rd place with 17%.
It also highlights the “strong appetite” of buyers residing abroad to the market of the Hexagon in the second quarter of 2017. They are now 44% interest in the French market, showing a strong increase compared to December 2016 (+14%).
The professionals of the high-end real estate react
Among the main reactions of the professionals, Laurent Demeure, president of Coldwell Banker France and Monaco, recalls that“in the beginning of the year, the market has been under pressure with the fear of the election of a president antieuro and anti-European Union. The victory of a president pro-business and pro-european has allowed Paris to take a definitive leadership in the context of the Brexit to accommodate businesses in the world of finance.” Which leads to, according to him, already, an important flow of european acquiring in from London.
“I have also seen a strong return of american buyers, which confirms the trend observed since 2016, following the landing of the cycle u.s. real estate, “he adds. These buyers intend to take advantage of the cycle of rising prices on the horizon until 2020 in France.”
Nicolas Pettex-Muffat, director-general of the Group Daniel Feau, a specialist of the parisian market finds that “the effect of the attacks has cooled down the foreign customers and it has been completely obscured by the request of the customer the French who seemed to think that the Marais is the future Saint-Germain-des-Prés.” Result : “He observes that there is a significant imbalance between supply and demand and prices up significantly from a year ago. And the demand once fixed, especially around the historic Marais, place des Vosges is now spreading more to the north in the direction of the Tile of the Temple.”
To the east of the Invalides, the market of the Faubourg Saint-Germain is one of the most “solid” of Paris, ” he adds. The offer is always less than the demand as many foreign as French. “On the west side of the Invalides, the clientele is more family-and the French and the surfaces to be reasonable (less than 160 m2 with a minimum of 3 rooms) are snapped up like hot cakes”, explains Nicolas Pettex-Muffat.
Finally, Thibault de Saint-Vincent, in command of the group, Barnes recalled that “since the 1st of January 2017, the real estate market in Neuilly is in an exceptional form, both on the number of sales recorded by the team of Barnes, up to 50%, as the price increase of 5% to 10% depending on the quality of the goods.”
: the investigation was carried out on a sample exclusive of 161 respondents in may of 2017 who are looking to buy a property luxury real estate in France by 2 years.