Paris is now considered a benchmark in terms of real estate, particularly in the eyes of international clients. The French capital has many assets to attract buyers, starting with the quality of its carefully preserved historic architecture. Investing in Paris thus has an emotional aspect, similar to that experienced when buying a work of art. Added to this is undeniable financial security, as France is much less exposed to sudden market fluctuations than Anglo-Saxon or Northern European countries. As a result, foreign buyers, particularly Americans, returned in droves in 2022.

The number of sales made by Junot stood at 565 in 2022, an increase of 15.3% compared to 2021.

The average sale price for Junot was €15,400/m2 in 2022, an increase of 6.7%. Note that this price is 45% higher than that observed on average in Paris by notaries. But the best sign of the stability and balance restored to the Parisian market is probably the average sales time, which has remained roughly the same since 2021 at 2.4 months between the start of the mandate and the receipt of an accepted offer.

 

* Of the 565 sales made in 2022 in Paris
** Source: Chambre des Notaires de Paris, January 2023 - Average price per standardized square ^m2 in old buildings in 2022

The payback of bourgeois neighborhoods

After having been less sought after in favor of more “bohemian” neighborhoods like the 9^th arrondissement or the Marais, the bourgeois neighborhoods of the west are once again on the rise.

The proximity of schools renowned for families, green spaces and Haussmannian architecture explain this renewed interest which is reflected, at Junot, in an increase in sales in value and volume.

Terraces, balconies and gardens: the price of exception

The selection criteria for a luxury apartment have changed since the 2020/2021 lockdowns. In 2022, it is outdoor spaces that are driving prices up, with a premium of +46.1% compared to an apartment without them.

At the same time, apartments with exceptional views seem to be winning favor with buyers, with the additional charge on the sale price representing an average of 25.5%.

Ultra-luxury: a healthy niche market

Ultra-luxury (sales of 4 million and more) sees strong demand for houses with gardens or apartments with terraces in the center of Paris, mainly from American customers. These buyers spent on average €6,980,000 for a price per m² of €24,900, according to figures revealed by Junot Fine Properties | Knight Frank.

Paris makes you dream, foreign buyers are back

The Emily in Paris effect

The number of sales made by foreign buyers increased by 65% at Junot in 2022. The three most represented countries were the United States (21%), Italy (11%) and Lebanon (8%).

In addition to its history and architecture, which make it a safe haven, Paris benefits from a double advantage in the eyes of Americans: an exchange rate that has never been so favorable to the dollar and interest rates that are half lower (around 3% in France compared to 6% in the USA). Buying in Paris becomes a godsend for them under these conditions. The success of the series Emily in Paris comes like the cherry on the cake!

High-end and luxury seem unsinkable

It is obviously difficult to comment on the evolution of the market in 2023, given the uncertainties weighing on the international situation. But the first trends observed by Junot at the start of the year show that the volume and sales times are being maintained, that prices are stable or even slightly increasing and that the international clientele is still present. The only downside observed since fall 2022 is that buyers may take more time to decide, and are attentive to the increase in the cost of their financing.

 

This relative tightening of the sales process does not, however, generate a quantified translation as demand appears to be sustained in relation to supply. The indicators are therefore good in the luxury segment, in a more balanced, more mature market.