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Confidence and optimism remain high in the luxury real estate

The third part of Luxury Portfolio International's 2022 study on global luxury real estate activity has just been released. Despite a year that brought its share of surprises, the sector is doing well, with overall activity remaining high. The market, after a few fears, is therefore preparing to end the year on a high note.

War in Ukraine, galloping inflation, rising interest rates... The year 2022 did not start under the best of auspices. And yet, if the drop in activity of domestic players has been felt, the return in force of foreign investors has compensated for this slight slowdown. Two years of restraint and the weakness of the euro have boosted their buying power. Even in times of financial uncertainty, investment in quality luxury houses with high added value remains a safe bet. Especially since, after the rush on properties during the Covid period, stocks are gradually being replenished. Sales are therefore remaining stable, or even rising slightly, with prices and interest rates tending to normalise.

Looking ahead, the report emphasises that dynamic regions with strong reputations are more likely to attract and accommodate new buyers. Market growth and development is linked to the activity of the business community, as well as the health of the economy and tourism in the areas concerned. The level of accessibility, the quality of services and infrastructure are also important assets. The role of prestige real estate players in the dynamism of the sector should not be overlooked either: top-of-the-range service, technological upgrading and high added value for the client are indispensable development factors for attracting new buyers.

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