2024, the ideal year to invest in luxury real estate?

In 2023, luxury real estate will not escape the crisis. 40,000 were offered for sale this year, compared with 80,000 the previous year, according to Coldwell Banker, a specialist in prestige and luxury properties that studied the market for properties between €1m and €5m. A much more spectacular decline than trading margins that are below 10%.

As with traditional real estate, prices are holding up thanks to the driving region, the South of France, which continues to attract the world. In Antibes, Cannes and Nice, prices increased by 14%, 10% and 9% respectively compared to 2022, the three strongest increases in the panel of 24 cities surveyed by the barometer.

Early 2024, the perfect time to buy?

On the Atlantic side, however, there is a big upheaval in the luxury market. Lège Cap Ferret itself continues to increase prices per m2, reaching 4%. Biarritz loses 2%, Bordeaux 3% to 6,053 euros per m2 on average. According to Laurent Demeur, president of Coldwell Banker Europa Realty, which groups around fifty real estate agencies, the vast majority of which are in France, Bordeaux’s decline is mainly due to the reduction of remote work and the local economic structure. it does not meet the expectations of Parisians who left en masse for the Girondine capital during Covid. As a result, many of them are returning to Île-de-France today. The Bordelais craze on demand and prices seems to be behind us.

Luxury is not dead

According to Coldwell Banker, luxury goods prices should fall a little more -4% in the first half of the year before picking up again in the fall, with inflation possibly under control and interest rates likely to fall. Therefore, the period January-June seems to be ideal for investing. Note that after years of price increases like in Antibes, where the price per m2 of luxury reached an average of 12,000 euros, according to Laurent Demeur, the wave of price increases should subside with falling demand.

Although the market is in worse shape, the rise of large fortunes worldwide, estimated by several studies to be 28% in the next two years, should allow luxury real estate to take off again with a vengeance. Laurent Demeure, head of Coldwell Banker, is already looking forward to the growth in sight.

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