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Two of the most prestigious property agents in Paris, Sotheby’s International Realty France-Monaco and Daniel Feau Christie’s, have recently unveiled a positive trend in the number of transations within the upper end of the prime property market.
Sotheby’s France disclosed an increase by 20% in the 2nd quarter of 2013 compared to the 1st quarter, noticing that “It is an encouraging result which shows that the market is to become more dynamic towards the end of the year”, said Alexander Kraft, CEO of Sotheby’s Realty France. “It seems that the sellers of prestigious properties become more flexible regarding sales prices, thus allowing to conclude more transactions at realistic prices. This phenomenon is explained by the combination of two factors: firstly, the continuing market downturn since the elections in 2012 put a lot of pressure on overvalued assets and lowers the price by 10-15% – sellers begin to understand that the overvalued property do not sell anymore; secondly, and at the same time, the exceptional capital gains tax rebate from September 1, 2013 now allows sellers to be more flexible when negotiating prices thanks to tax savings “. You can read more about the exceptional capital gains tax reform in our previous posts “capital gains tax on French property, latest updates“, and “capital gains tax on French property latest updates (part 2)” and “French property capital gains tax: calculator for the September 2013 reform”
“There is currently a wide range of exceptional properties in the upper end of the French market, and prices have been trending downward. For motivated and liquid investors, the market offers exciting opportunities. In my opinion, it is now time to return to the market”, added Alexander Kraft
Additionally, Daniel Feau property agencies in luxury homes, also mentionned a significant revival of the Paris market. The agency noticed a 8% increase in the number of transactions above Euros 1 millions (5% of the overall market) compared to a year ago. The market is benefiting from the growing concern in the Middle East about the Syrian conflicts, wealthy families from Lebanon have been investing more in Paris where the Lebanese community is already significant. The customers from the US are also coming back to the market feeling that it is the right time to benefit from good opportunity, while Russian investors are looking for safe investments in Paris and Chinese are also active on the market.