What sales momentum for Sotheby’s International Realty France
By Christian Captain | the | Franchise networks
Sotheby’s International Realty France – Monaco (70 agencies in France), achieved, during the first eight months of 2022, a sales volume of more than 900 million euros, i.e., over the same period, a volumetry ” almost identical to that of 2021, a year that broke all records », Reports to the general management.
Despite setbacks (presidential elections, war in Ukraine, context of high inflation, rising borrowing rates, etc.) which could have grasped market dynamics, the Sotheby’s International Realty France – Monaco network finalized, between January and at the end of August this year, more than 600 sales, at an average price of 1.53 million euros.
This is a volume close to that of 2021 at the same time, which had been marked by 660 sales, at an average price of 1.37 million euros.
“Over the first eight months of the year, the market dynamic is still present, comments Alexander Kraft, CEO of Sotheby’s International Realty France – Monaco. Quality properties sell easily and buyers are willing to pay for exceptional accommodations as long as the price displayed is fair. »
The latter adds “We have more than 200 million euros in transactions in the pipeline (under promise and/or under compromise), which should materialize by the end of the year. It is therefore possible that we are approaching our results for the years 2020 and 2021, which were record years for the sector. »
Activity cap
However, the network observes, since this summer, a ceiling of the activity ” which seems to indicate a normalization of the luxury real estate market to come, comments Alexander Kraft. Ceiling due in particular to “ a certain slowdown in the activity of French buyers”, recover the CEO of the sign, but fortunately “remunerated by the return of foreign buyers”, and particularly from Western Europe: Germans, Swiss and Scandinavians.
“We are also noticing a strong comeback of American buyers, whose purchasing power is accumulating in France due to the rise in the dollar. They are also taking advantage of the opportunity to travel without restriction for the first time in three years and are finally realizing their plan to buy a second home abroad, which they have postponed throughout the Covid period,” analyzes Alexander Kraft.
Buyers from the Middle East are also not left out, and remain “ still as much suppliers by the French market, wishing to transform their dollar fund into investment in French stone “, comments the network.
As for the absent foreign customers, the network cites Asian buyers, because of the Covid; and those in Eastern Europe, phenomenon undoubtedly linked to the war in Ukraine. »
Paris, a still active market
By geographic sector, Paris revealed itself over the first eight months of 2022, ” a very active market, comments Alexander Kraft. ” Our eight Parisian agencies (3e6esevene8e9e16e17eboroughs) worked well. They achieved very good sales, with high budgets. Overall, a property displayed at the right price leaves easily. “.
Regarding the outlook, and in a context where French buyers are now taking longer to finalize their transactions – ” Negotiations between buyers and sellers are getting longer than in previous years”remarks Alexander Kraft – ” we can expect a leveling off in activity for the coming months “, that is ” an indicator of a normalization of the market after two years of euphoria and records. »