Before the summer, Junot strongly encouraged owners to act quickly if they were considering selling their property in the coming year. This recommendation was motivated by a notable increase in requests for estimates for sales projects planned for the start of the 2024 school year. Indeed, during the Olympic Games, some owners delayed putting their property on the market to take advantage of the event. "This forecast is confirmed at Junot. At the start of the school year, we are seeing a 115% increase in requests for estimates for sales and rental, which risks accentuating the price correction," underlines Sébastien Kuperfis, President of the Junot group.

A summer marked by a sluggish luxury market

This summer, transactions of properties above €2 million slowed down. In fact, large properties for sale became rarer, although buyers were present. Less rushed, sellers waited for a more stable political climate or to return to Paris following the Olympic Games. The market was thus largely supported by first-time buyers. In search of small properties, these buyers, often motivated by the need for a first acquisition, supported the market. "This strong demand changed the structure of sales during the summer. Junot's turnover for the month of August remained similar to that of 2023, but with one notable difference: transactions were mainly on smaller properties", notes Sébastien Kuperfis. However, we have made some good sales, as evidenced by the sale by Junot of this 366 m² apartment, renovated by an architect, located in the 7^th arrondissement in the Saint-Dominique district sold to 14,200,000 €, or 38,750 €.

 

At the start of the school year, the end of uncertainty over the government's color brings more optimism to the luxury market.

A less enthusiastic assessment of the Olympic Games?

The summer of 2024 finally showed signs of weakness in the seasonal rental sector, which did not reach the levels hoped for by our owner clients. At Junot, we were also able to observe the decrease in the number of foreign tourists looking for investment or a pied-à-terre during the Olympic Games period, which contributed to a market status quo. However, the success of this event helped to increase the influence of Paris and strengthen its attractiveness for the months, even years to come.

Price trends and outlook

The trend remains moderately bearish, at around 1%. Properties with defects have continued to experience a stronger correction, while properties without defects continue to sell with little negotiation. "To date, many properties with defects remain overvalued compared to market prices", concludes Sébastien Kuperfis.

 

Furthermore, the prospect of a possible drop in interest rates could boost transactions and offer better opportunities to buyers. And while higher-budget properties have suffered from political uncertainty, the start of the 2024 school year is looking more optimistic. Indeed, the many estimates made recently suggest a resurgence in activity, an encouraging signal for the end of the year.