Paris is not selling. This is what the main newspapers are reporting. Unfortunately, as you know, the period is not the best, and all economic sectors are paying the price. But there is one element that has made the situation in Paris very interesting. Contrary to what usually happens, it seems that the most luxurious houses in Paris are no longer selling. A strange case, which goes against all logic, especially when you consider that the luxury segment is unlikely to go into crisis. So, if you’re as interested in Parisian real estate as we are, let’s find out why Paris isn’t selling anymore!
Let’s start our mini-column!
Before we get into the heart of our guide, let’s take a detailed look at the health situation in Paris. It’s no secret that the French capital is in the grip of one of the toughest emergencies in history. This is coupled with the recent attacks which have led to further fear and unrest. In short, Paris is certainly not the best scenario for investors to reallocate to. These are just two elements, but of primary importance, which are undermining and altering local real estate. But the real seriousness lies in the luxury sector, which is being severely impacted by these critical issues.
In addition to standard flats, large flats are not selling. From 90 square metres up to truly remarkable spaces. Although most buyers want to find a spacious property, it seems that now is not the right time for Paris. In addition, those looking for the largest square footage are also looking for balconies and terraces, which are essential elements after the Covid emergency. Buyers who showed particular interest in Parisian luxury at the start of the year have now changed their minds. Many have frozen their sales contracts. Others even preferred not to conclude them. In short, if the crisis is affecting even the richest, it means that the level of drama is rather high.
The role of the banks is undermining the whole system. Paris is no longer selling because the banks have introduced considerable restrictions on lending. Very low interest rates compared to the European average have not helped much. The crisis is there, and it shows!
In addition, there is no new information on what the government is doing to counter this endless crisis. It seems that everything is mainly focused on solving the health emergency. With the chaos over vaccines and vaccine trials, plus the lack of beds to help Covid patients, real estate seems to have been forgotten.
In conclusion, we do not have the tools to understand when the Paris that does not sell will be able to recover. Hopefully, things will change in the new year. But until then, fear not. We will always keep you updated on how the global real estate market evolves!
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