Paris’s luxury-home market has remained fairly resilient despite several years of market-shifting events—from the Covid pandemic to hosting the Olympics to six prime ministers since 2020. The city’s high-end housing market has benefited from a mixture of strong international demand and limited building
From the onset of the pandemic until now, luxury property prices in the French capital have risen 12%, increasing from €20,370 to €22,730 (US$25,518) per square meter, according to a report from Knight Frank on Monday.
Sales, however, started to slow in the second half of last year, with just 12,220 property deals, which is fewer than the first half of 2020. Still, there are some types of homes that remain highly popular among wealthy home buyers.
Luxury segments, such as new builds, pied-à-terres, and hôtel particuliers [freestanding mansions], remain in particularly high demand, supported by limited supply and renewed interest from global buyers,” said Kate Everett-Allen, head of European residential research at Knight Frank. “As global uncertainty rises and wealth becomes more mobile, Paris is emerging as a stable, known market for investors.”
Construction in Paris is rather low, with fewer than 2,000 homes being completed annually in recent years, driving up the prices of new builds. Prices for pied-à-terres are also soaring as they’re in high demand, particularly among Chinese buyers, Knight Frank noted in the report. Last year, the average price for apartments sold by Junot Fine Properties, Knight Frank’s Paris partner, hit €7.6 million, with an average size of 235 square meters (2,529 square feet).
As for mansions, only six sold last year, despite the pandemic creating more interest for these larger properties among wealthy buyers seeking more outdoor space. So far this year, though, two trophy properties have already sold in the 7th arrondissement, with one fetching €55 million and another selling for €100 million, according to the report.
In addition to paying more for in-demand property types, luxury buyers were also willing to pay for a famous view—last year, 46% of buyers paid a premium for a view of a Parisian landmark.
For the past few years, domestic demand has been down in Paris, with many French homeowners locked into low mortgage rates and unwilling to sell. Though that may change soon with borrowing costs finally dropping, according to Knight Frank.
However, Paris has remained popular among international buyers. In Knight Frank’s 2024 European Lifestyle Report, which surveyed 750 high-net-worth individuals across 28 different nationalities and was released last summer, Paris ranked as the No. 1 city for relocation. So far this year, the city is seeing the most international buyers from the U.S., China, the U.A.E, Saudi Arabia and the U.K.
