In recent years, luxury real estate has experienced a very difficult time. There have indeed been fewer and fewer clients and they have become more demanding when present.
Despite the bad results recorded, the sector is today on the road to recovery that remains rather quiet but it is certainly there. Good news for real estate agencies on the French Riviera.
Stagnation over recent years in luxury real estate
With the crisis and a lot of uncertainy, real estate prices have dropped dramatically in recent years. Negotiations are very tough and to sell one’s property, it was sometimes necessary to go to considerable efforts to bring the prices down.
Only the owners were in less of a hurry to sell, waiting in the hope a a recovery, the market tended to stand still. No region in France escaped from this. Ask any luxury real estate agency on the French Riviera, a very dynamic region at this level, can confirm this market trend. Buyers in this niche are also less and less numerous, due to unstable employment.
The wealthy Russian clientele, for example, have also disappeared, allowing the relatively easy disposal of prestigious properties, particularly in the southern region of France, which had an unparalleled attractiveness according to them.
A demand that is beginning to grow again in the French Riviera
There is real demand again, triggering a recovery of the luxury real estate market on the French Riviera. The attractiveness of the seaside and the fall in prices are the major advantages of this new momentum, which still remains rather apprehensive.
It seems that people from France and Northern Europe are directing their attention once again to luxury properties in this region. France is now ranked third, behind Portugal and Spain for its attractiveness in luxury real estate.
This is rather good news, which adds to the confidence that seems to have come about following the election of Emmanuel Macron. Add to that, available budgets seem to be on the rise as 57% of people in this market are looking for properties worth 1.5 million or more.
Adaptation of luxury real estate agencies on the French Riviera
Agencies need to adapt to new demand, while taking advantage of the changes taking place in the field of luxury real estate. Many buyers are looking for properties costing between two and six million euro. They have a clear preference for villas and properties located not far from the city centre and with an area of 250 and 350 sqm.
Agencies are noticing a demand that is tending to grow. Given the fact that supply is currently higher than demand, prospective buyers are not in a hurry. They can take their time with multiple visits, so that they can compare them and reflect upon what they have seen.
Ultimately, they tend to negotiate the proposed prices. Despite all its components, real estate professionals seem to indicate a number of property sales to more than ten million in a very slight rise. In the second quarter of 2017, interest in the French market rose to 44%, much higher than 14% in December 2016.
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