The market for luxury real estate

The owners do not dream only of beautiful stones. The real estate of prestige attracts more and more professionals. Along with “historical” as the group Féau Daniel, established in 1945, and Emile Garcin, a few years later, arise new, tight under the banners of franchisors to international names reassuring for customers able to pay several million euros. Competition is fierce, with blows of advertisements, sales unverifiable, a market representing less than 1% of all transactions: in the first half of 2011, notaries recorded only 398 transactions over 2 million euros in Ile-de-France.

Yet the world has their eyes on the French heritage: from the “Wealth Report” of Knight Frank and Citi Bank, five of the most expensive markets in the world are located in the Hexagon: Cannes, Saint-Jean-Cap -Ferrat Saint-Tropez and in the lead, followed by Paris and Courchevel. And in these environments privileged, villas with park and view up to 20 million euros, the price per square meter did not make sense.

Several models of development coexist, the franchise is the most common and is full. He even said that the new shareholders of Foncia consider adding a branch to their high-end business. “We have a century of experience in the United States. We will bend to the French system while practicing marketing in the U.S., “ announced Orpi but fresh President of Coldwell Banker, a franchise network in the same group American as Century 21 and ERA. It promotes its range luxury recently, called “Preview.” The world famous British group Knight Frank has also thrown in the towel and covers the residential market since its parent, through independent agents, while the Germans begin Engel & Volkers their conquest of Paris.

The name of Sotheby’s talk more. With 50 franchisees in France, the network Sotheby’s International Realty – legally separated from the auction house, is fighting for a podium finish. “When one agrees to the Sotheby’s name instead of his own in his window to pay an entrance fee and 8% of its turnover, it sought to find a place that we did not think an independent, found it unnecessary to take this step . In luxury, we must first have an address book. This is the case of John Taylor, the undisputed No. 1 on the Cote d’Azur. The former subsidiary of Daniel is now the group Féau Monaco Pastor, who has decided to expand the brand beyond its land of excellence: the turn is made, an agency has opened in Paris and the brand is expected to venture to other regions of France, and abroad.

The franchise system requires a massive development incompatible with the high-end real estate, which requires, however, discretion and exclusivity. They use the network created by the membership to meet the demands of foreign customers to buy France or French guide looking for property abroad. Within this very small world, cross and recross professionals, former partners and new competitors. Everyone knows, is observed, is roundly criticized. The luxury could have earned 31% between 2009 and 2010, if you believe the estimates of the group Féau. The pied-à-terre in Paris or Provence house is a sign of wealth that many investors are, and will find again in the near future, safer than the stock market.