In an uncertain economic climate, luxury property remains a safe bet
Inflation, rising interest rates, tighter credit conditions and an unstable geopolitical situation: while property remains a favoured investment, the sector is suffering from a still-tumultuous economic climate and an uncertain future. As a result, the volume of sales has fallen by 16.6% year-on-year, the lowest level for a decade. And while the situation gives little cause for optimism (there are fears that inflation and borrowing rates will remain high for a prolonged period), the top-end property market is holding up well, confirming its status as a safe bet.
The reasons why? The sector is still benefiting from a combination of factors, including the post-pandemic economic recovery, the rise of techfin and the increasing geographical mobility of wealthy individuals. The latter are looking for stable, long-term investment opportunities, and luxury real estate often offers a safe haven for their capital. This clientele is also less affected by financing difficulties, and in an uncertain economic climate, property offers stability and long-term value preservation. And while price rises have slowed considerably, there is no immediate downward trend. The presence of a large number of foreign buyers also contributes to the dynamism of a sector that is relatively impervious to the turbulence of the conventional market. Of course, the picture is not entirely idyllic: supply is still lower than demand, and some high-value properties are still finding it very hard to sell. As for the entry-level segment, it is suffering from the same problems as the traditional property market.
What's the trend in our region?
While Paris, with its timeless charm, cultural appeal and plethora of attractions, continues to lead the way at national level, the French provinces, in particular the Côte d'Azur and the Var, are doing particularly well. Sea views, picturesque landscapes, unspoilt coastline and a southern lifestyle all contribute to the success of our region. The growing interest in sumptuous second homes offering a unique combination of Mediterranean dolce vita and quality services is well established. The towns in our geographical area, from Saint-Cyr to Cavalaire, via Bandol, Sanary, Hyères and Bormes-les-mimosas, offer unique atmospheres in a picturesque natural setting, with breathtaking panoramas, heavenly beaches, thousand-year-old vineyards and an authentic hinterland.
The outlook for the end of the year remains promising, with signs of growth and interesting opportunities. Do you have a property project in mind? Don't hesitate to contact us: our agency has established itself as a leading player in the Var's upmarket property sector, offering tailor-made solutions and anticipating emerging market trends to provide you with an unrivalled experience in acquiring or selling upmarket property.
