Profile of the prestige buyer in France, typology of projects, impact of Emmanuel Macron's policy on high-end ... Here are the results of the 9th wave of the study "Trends and Forecasts" published by Lux-Residence. com.
Lux-Résidence presented its "Perceptions and realities of the luxury real estate market in France" in the presence of major real estate groups in the high-end segment: Barnes, Coldwell Banker France & Monaco, Daniel Féau / Beautiful homes of France, Engel & Völkers, Sotheby's International Realty France & Monaco, Vaneau. Here's what you need to know to better understand the current market of high-end real estate.
Who is the buyer of luxury real estate in France in 2018?
This 9th wave highlights a slight rejuvenation of the
population of buyers of luxury real estate in France. 71% are
aged 35 to 64 with 17% of buyers between 35 and 49 and 54%
between 50 and 64 years old. But the proportion of people over 65 is decreasing
significantly. They represent only 25% of the buyers,
9 points less than in 2017. This rejuvenation of the
population of acquirers of a prestige property is also affected by
in the decline in their annual revenues with a drop of 6 points per
compared to 2017 in the segment of acquirers with
net annual income of more than € 200,000 within their household. They
were 27% in 2017, rising to 21% in June 2018, almost 1
buyer out of 5. Another consequence, they are 66% to be still in
11 points higher than in June 2017 (see Chart).
2). 41% of them are executives or exercise a liberal profession
and 25% are business leaders, artisans or traders. The
retirees therefore represent only 24% of the purchasers surveyed in the
framework of this 9th wave of the study.
Regarding their place of residence, at least 6 future purchasers out of 10 claim to live in France. In fact, 59% report residing in France, 25% abroad and 16% did not wish to communicate information on this subject. Of those residing in France, 41% live in the Paris region, 35% live in south-eastern France, 9% in the north of the country, 10% in the North-East region of France and 5% in the southwest. Often multi-owners, 54% of future buyers of a prestigious property interviewed in this study have between 2 and 5 properties in their portfolio, 15 points more than in 2017. "The profile of the purchaser a luxury property in France seems to be rejuvenating. Still in business for the most part, they are often multi-owners. Nearly 1 out of 2 has between 2 and 5 properties in the portfolio, "says Séverine Amate, Communication Director at Lux-Residence.com.
What typology for projects of purchase of luxury real estate in France?
In 2018, 56% of the project leaders surveyed are looking for a new principal residence, which is 14 points higher than in May 2017. 26% are looking for a second home and only 10% have a project to build a new home. investment (a figure down by 6 points compared to N-1). To concretize its project, 1 future purchaser out of 2 questioned within the framework of this study Lux-Residence.com directs its research on goods estimated at less than 1.5 million euros. (See Chart 4). 22% are looking for a good between 1.5 and 2.5 million euros. 8% focus on goods between 2.5 and 5 million. They are more than 2% on the range of 5 to 7 million, while they are 8% to consider a project beyond 7 million.
Regarding the type of property sought, 56% are looking for a property / villa (8 points more than in 2017). The apartment comes in second with only 15% of projects (a drop of 7 points compared to last year), followed by castles and manor houses around 13% of projects.
What framework do they favor for their future good? 46% evoke the sea, 25% the countryside and the urban environment arrives only in 3rd place with 21% of the projects. The mountain, earns 6 points in a year and goes to 10% of projects.
To which regions are they moving in the context of their project? The French Riviera comes in first place with 32% of the vote but has a loss of 9 points compared to 2017. Provence (Luberon, Alpilles ...) ranks second with 23% followed by the capital and its surroundings with 13 %. Note a rise of 7 points for the West Coast (Bassin d'Arcachon, Charente-Maritime, La Baule ....) Which now attracts 13% of projects, tied with Paris.
Among the 3 main criteria considered essential by the future purchasers of a prestigious property include: a privileged environment (59%), a quality of buildings and architecture (56%, up 16 points compared to N -1) and sight (55%, up 9 points).
What is the state of mind of buyers of luxury real estate?
Only 46% of the future buyers surveyed are in the affirmative on the makes it time to buy a luxury property in La France. A figure down 10 points from the year last. They are 24% to express reluctance on the opportunity to buy in France right now, while 30% do not know how to pronounce on it. Yet 81% of future buyers of a property luxury real estate trust the outcome of their project immovable.
Why this dichotomy in their reading of the current market?
Among the elements of response include a look more
critical on the evolution of the economic context in France. Indeed, if
the majority (40%) are inclined to stabilize the economic context
in France over the next 6 months, they are still 28% in
bet on a deterioration of the economic context (12 points of
more than a year ago). Only 32% remain optimistic and evoke a
improvement of the economic context in the months to come.
Moreover, 35% think that prices for luxury real estate in France should fall in the next 6 months, even if the majority is inclined to price stability (40%) and only 19% project their rise in the coming months.
In another register, when asked about the impact of Emmanuel Macron's policy on the attractiveness of France in the international prestige real estate market, there is no unanimity. The majority (40%) feel that the policy of the new president in place for a year does not participate in the attractiveness of the country in this niche market. However, 36% answer in the affirmative and 25% did not express themselves on the subject.
To complete the analysis, Lux-Residence.com, in partnership with Boursier.com, wished to raise the question of the impact of the transformation of the ISF into property tax (IFI) on their purchase project. a prestige property. However, 53% of them consider that the IFI has no influence on their current real estate project. On the contrary, 43% of them identify an influence of this new tax on their project: 24% express it as a rather important influence and 19% as a very important influence, ie 1 future buyer out of 5.
A feeling sometimes mixed, which does not prevent the current strong dynamism of the French luxury real estate market. France remains a safe value for the purchase of a high-end property and ranks third in the ranking of the most attractive countries currently on the international market of luxury real estate, behind Portugal (1st) and the United States. Spain (2nd).