The luxury apartments are selling well in Paris
Posted on janvier 30, 2013 by Frank
Sale of luxury apartments is experiencing a slowdown in the French capital. Developers are not discouraged either. They believe that Paris is still cheap compared to other cities like London or New York.
Luxury ailing
The luxury apartment are selling well in Paris. The panic rears its nose in some real estate developers. One of the actors from the sale of luxury apartments, Emile Garcin sounding the alarm. The director of this company, Philippe Chevalier stresses that the Paris market of real estate is sick. Some proponents deny reality. Real estate prices have yet to prestige declined. Developers should review their goals 15% solve the problem suggests Philippe Chevalier. Emile Garcin for the company’s transactions on real estate will fall 12% this year. Emile Garcin a competitor, Barnes also draws the same conclusion on the situation of transactions on luxury apartments in Paris. However, these figures seem to obscure a market decline of around 50% in the second half of 2012
Price threshold
The Barnes Group announces a 28% decrease of its transactions on the offers sold at prices ranging between 1 and 2 million. Above these prices, the decline is estimated at 40%. These decreases were recorded in the first nine months of 2012. Division also settles in the prestigious secteurimmobilier. The CEO of Barnes, Richard Tzipine emphasizes that the price reduction on buildings less than 200 square meters can still be limited to 5%. However, any finding of fault on the property, the reduction is reduced to 10 or even 20%. Among the defects mentioned by Richard Tzipine is the lack of brightness. According to Richard Tzipine few French or none, wants to buy an apartment as luxurious as it is, which costs over $ 3 million. For such a price, developers are turning to foreign customers. They represent 60% of purchasers of luxury building.
Hope Aliens
Since the accession to the presidency of François Hollande, wealthy foreigners are very hesitant. The tax issue has also an impact on the sale of luxury properties. Many companies want to leave French territory for their activities better tax treatment. And they want to sell their premises until their departure. These sales result in a saturation of the market supply. Barnes, the number of luxury apartments, awaiting lessee increases by 30 to 50% compared to 2011. The phenomenon of declining sales of luxury apartments strikes in the province for two years. Developers did not expect, however, that the phenomenon affects the French capital. They still want to believe in maintaining the value of real estate in Paris. Belief promoters based on a comparison between the current price and that applied to Paris to London and New York for the same range of apartments. Luxury real estate in London and New York seem to be 10% more expensive than luxury Parisian neighborhoods.