“2020 should be a record year for luxury real estate”, Alexander Kraft

Alexandre Kraft, President of Sotheby’s Worldwide Realty France – Monaco, a prestigious actual property community, with 53 actual property companies in France, attracts a really constructive stability for the 12 months 2019 and declares wonderful prospects for the 12 months 2020.

A gross sales quantity of greater than 1 billion euros

“The outcomes for the top of 2019 confirmed our forecasts: 2019 continued on the encouraging pattern of 2018! “Rejoices Alexander Kraft, President of Sotheby’s Worldwide Realty France – Monaco. In 2019, the Sotheby’s Worldwide Realty France – Monaco community made 645 status gross sales, a rise of roughly 22% in comparison with 2018 (2018: 526 gross sales). The typical value was 1.56 million euros (a slight drop of round 9% in comparison with 2018 with € 1.72 million) throughout France. Consequently, the French companies achieved a complete gross sales quantity of greater than 1 billion euros (€ 1,006 million). Alexander Kraft explains: “This gross sales quantity of round 1.01 billion euros exhibits that the status actual property market is in wonderful well being in France. “

Glorious market in Paris however the impression of yellow vests and strikes

Alexander Kraft continues: “As in 2018, Paris was essentially the most energetic market in France in 2019. The Parisian outcomes for 2019 are virtually similar to these for 2018. The truth is, they might have been even higher due to the very massive steady demand however they have been impacted by 2 destructive components: the demonstrations of the yellow vests (which slowed down the Parisian actions throughout weekends) and strikes (which prevented the actions of potential consumers on the finish of the 12 months, particularly these coming from overseas). Consequently, a big variety of Parisian gross sales have been postponed to 2020.

One other phenomenon noticed in Paris by our 7 Parisian companies (within the third, sixth, seventh, eighth, 16th, 17th arrondissements) was that there have been fewer transactions within the “hyper excessive finish” between 10 million and 50 million euros in comparison with 2018, however many extra transactions between three million and seven million euros. Alexander Kraft feedback: “The sturdy exercise within the phase between three million and seven million exhibits that the status actual property market in Paris is secure and wholesome as a result of it relies upon much less on a number of remoted document transactions however is supported by vital and steady demand.”

Regional markets comply with the instance of Paris

The large information of 2019 was the re-emergence of provincial actual property markets all through the territory of France. Alexander Kraft explains: “The French have regained their confidence in French stone and are shopping for at present, not solely to improve their most important residence or purchase second houses, but additionally to make strategic investments for the longer term.”

“Whether or not within the South (Provence, Côte d'Azur, Languedoc), within the mountains (Megève, Méribel, Courchevel, Chamonix), in seaside resorts (Biarritz, Pyla-sur-Mer, La Rochelle-Ile de Ré, La Baule, Dinard, Le Touquet), metropolitan areas (Lille, Lyon, Bordeaux) or the land (Brittany, Normandy, South-West), we now have seen a rise in exercise on all of our 50 French markets, explains Alexander Kraft. After pretty tough years in lots of areas and a primary rebound in 2018, the constructive pattern intensified in 2019 in lots of markets often in style with the French! “

On French territory in 2019, the community companies Sotheby’s International Realty France – Monaco benefited from a certified clientele with more and more massive budgets, on the lookout for good alternatives after years of disaster and benefiting from traditionally low rates of interest.

Consequently, costs have risen in lots of French markets: the biggest will increase have been seen, once more, in Paris, with round + 5-15% relying on the dimensions, situation and site of the property. Nevertheless, for the primary time in a number of years, slight will increase of two to five% (as much as Eight-10% in metropolitan areas) have been additionally famous in sure regional markets.

Some examples of products bought in 2019

• A fort in Brittany for greater than four million €
• A villa in Pyla-sur-Mer for € 5 million
• A waterfront property in Corsica for € Eight million
• A personal mansion in Paris Rive Droite for over € 20 million
• A villa in Villefranche-sur-Mer for € 22 million
• A villa in Saint-Tropez for € 29 million

2020, a document 12 months?

Along with this constructive pattern, the beginning of 2020 seems to be extraordinarily promising: “In direction of the top of 2019, a big variety of transactions have been postponed to the primary quarter of 2020. Together with our exercise continues within the first weeks of this 12 months, we have already got a really massive variety of compromised transactions. This leads us to hope that 2020 will probably be an actual document 12 months, ”says Alexander Kraft.

Sotheby’s Realty approaches 60 companies in France

Sotheby’s Worldwide Realty France ® is benefiting from the present dynamism of the market to strengthen its place as a pacesetter within the French luxurious actual property market. Having already opened greater than 10 new branches in 2018 and 2019 (amongst others in Lille, Le Touquet, Lyon, Paris-Marais, Perpignan), the community plans to open 5 new branches in 2020, notably positioned in Paris fifth, Paris ninth, Paris 16th (Auteuil), and Paris 15th. Alexander Kraft concludes: “In 2020, Sotheby’s Worldwide Realty France will probably be represented by practically 60 companies in France, thus providing essentially the most full protection of prestigious actual property markets in France. “