The Parisian high-end real estate market confirms its good health as evidenced by the activity of our Vaneau agencies with an increase of +25% in the volume of business compared to the 1st quarter of 2022 and even +9% compared to 4th quarter of 2022 which was already an excellent quarter. These figures show us that high-end real estate continues to serve as a safe haven for high net worth, inflation and rising interest rates having little effect on their acquisition behavior.

The Left Bank now serves as a locomotive, thanks in part to foreign buyers and the return of expatriates returning from London. At the same time, there has been a slight slowdown on the Right Bank and particularly in the west of Paris (16th and 17th) compared to the end of 2022, but this seems normal to us, as this market is more cyclical and generally more active from spring, favored by families with children for moving. It should be noted, however, a slight slowdown in the market since mid-April in certain sectors, following the strike movements and the spring holidays without, in our opinion, needing to be worried about. If we look at the sales lead times, we see that the higher the sales prices, the shorter the lead times! For example, at Vaneau we carried out about fifteen flash sales (sales time of less than 5 days between the marketing and the countersigned offer) in the 1st quarter.

As far as price trends are concerned, here too, we can see that the Left Bank is doing well in this 1st quarter with an average price at Vaneau of more than €18,000/m² compared to €13,400/m² on the Right bank. With an overall average price of more than €14,200/m² over the period compared to an average price in Paris of €10,177/m², Vaneau is further strengthening its high-end positioning on the Parisian market. The constraints related to the DPE have at this stage only few consequences on the high-end market, small surfaces being the most penalized by these constraints. In addition, the vast majority of our buyers buy either main residences or properties without intending to rent out their property.

Trading margins are becoming slightly more flexible, a sign of some awareness on the part of sellers that prices have now stabilized, but with supply still limited, the high-end Paris market should continue its good momentum for all the year 2023.

VANEAU LUXURY REALESTATE

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• contact@vaneau.fr