Luxury real estate is once again particularly appealing in France. This high-end booming market draws in a large number of investors - both French and foreign - who are charmed by France’s international renown, natural assets and prestigious real estate offer. What type of investors focus on the luxury real estate market? What are their favourite destinations? Michaël Zingraf Real Estate can answer any of your questions!
What kind of people purchase prestigious properties in France?
Buyers are much younger than they used to be
In the luxury sector, most buyers are aged 35 to 64 (in 2018, this age group represented 71% of the market); conversely, only 25% of buyers are aged 65 or over. There are more younger buyers than previous years, which has reduced the annual average revenue: 21% show net annual revenue higher than 200,000 euros, whereas 55% of investment budgets range from 750,000 to 2.5 million euros.
Most still work
Most luxury buyers still have a professional activity at the time of their purchase (66%). Retired buyers therefore represent a minor proportion. Among those still working, higher intellectual and accredited professions - as well as executives - are most present on the market (41%). Other buyer categories include business owners, craftsmen and retailers.
Buyers who already own property
Close to half of all buyers already own 2 to 5 properties (in France or abroad). The proportion of first-time buyers is very small on the luxury real estate market (11%, as opposed to 48% on the standard real estate market).
French and foreign citizens
The luxury real estate market draws in a majority of French residents: 6 out of 10 buyers state that they live in France. There is also a high proportion of buyers living abroad, namely compared to the standard real estate market: 25% of investors live abroad. Among French residents, 41% live in the Paris area, and 35% in the South-East.
What preferences stand out among luxury buyers?
Favoured destinations
Investors looking for exceptional properties favour certain regions in France as opposed to others:
• The French Riviera ranks first as the most coveted area for prestigious investments;
• Provence comes in second. The Lubéron and Alpilles areas are also particularly sought-after;
• Paris, the capital, has gained in appeal since 2017 (namely amongst foreign investors); it currently ranks third in terms of favourite destinations;
• The West Coast comes in fourth position (in and around Arcachon, La Baule, Charente-Maritime).
Primary or secondary residence?
Most luxury buyers are looking for a primary residence, about a quarter are after a secondary residence, and less than 20% are for rental investments. The proportion of secondary residences is therefore much higher than on the standard real estate market (counting less than 10% of buyers).
Are you looking for support for the purchase of your luxury property in France? As specialists in prestigious real estate, Michaël Zingraf Real Estate agencies can help you find the villa or apartment of your dreams. Discover our rare and prestigious property offers in the heart of Paris’ most prised neighbourhoods, as well as in Provence, in and around Deauville, and along the French Riviera.