Beginning of 2008 in crossed 7 in 10 districts

In the deleterious climate created by still more alarmist news of depreciation of real estate, Charles-Marie Jottras, President of Feau, brings his light on a specific segment of the residential Park Paris. The head of a group of 200 people, he specialized in apartments more of EUR 1 million transactions in the bourgeois neighbourhoods of the capital. "The market of the apartments in the beautiful Parisian neighbourhoods has nothing to do with the rest of the market for housing in France, insists." More than 95 of the apartments of this high price range are located in the first eight arrondissements of Paris, in the 16th and 17th South, says this professional, this is where to sign 98 of the purchases of goods whose values exceed 1 million euros in Paris. "This niche represents approximately 2,000 sales per year (2007 figures) because, said he,"prices soared by almost 200 in ten years, from 1997 to 2007, this increase in expanding the expensive housing stock and the number of transactions ". On the some 2,000 sales, 1,500 of them were less than EUR 2 million, those 250 ranged from 2 to 4 million, and those of 50 exceeded 4 million. "The number of signatures in the first half of 2008 has remained in the same vein, but has been in sharp decline since the second half," he continued.

It shows have registered for the first time during this period "4 or 5 disclaimer" on 300 current sales. Nothing to do with the withdrawal of the Russian who had signed the promise of purchase, at a stratospheric price of EUR 390 million, from the villa Léopolda between Cap-Ferrat and Chin. It a trial the vendor to attempt to retrieve his release of 10 on the transaction that would have been, had it been entered into, the most expensive in the world.

A very limited offer

"New to sell in the mentioned districts apartments stock is even not the fingers of a hand", said Charles-Marie Jottras. Beginning of 2008 in crossed 7 in 10 districts. "The Parisian market is structurally shortage because there can be no creation of new offers." Residential supply is constrained by the existing, and buyers are limited to the market of the former. "Paris is, he says, the only capital in this case. "London and most of the global metropolis welcome new programs each year." Manhattan proposed thus annually in recent years 20,000 new housing. The disappearance of jobs in finance 200,000 announced in 2009 after 90,000 in 2008 have unbalanced the market, and sales prices declined by 25. He said that "the decline in the number of transactions in New York on apartments of more than 1 million eurosest valued at 60 in the first quarter of 2009 over the same period of 2008.

His eyes, "this scarcity of new housing or restructured in Paris is the result of the obligation to produce 25 of housing in these areas." At such point that developers interested in the recent sales of the 7th District State-owned buildings had to waive achieve housing, non-competitive to the offices. "This situation is typically Parisian, unlike the rest of the France where available land and new programs." According to the Federation of manufacturers promoters, stock account 5200 completed new apartments waiting for purchasers and 45,000 in work.

Typology of affluent purchasers

While France housing sales accounted for by the Conseil supérieur du Notariat were the subject of 802.000 acts in 2007 and 667.000 in 2008 ( 16.9 from one year to another) and depend on the activity pay purchase candidates since it determines their borrowing capacity, Feau has on the 2,000 annual sales of high range of 1,000-1,500 apartments offers. "1,100 today", said Charles - Marie Jottras, for which most vendors accept not suspensive conditions. "The price of the average apartment sold by Feau is 1,650 million euros." The amount is high, the more the proportion of foreigners. "Beyond 4 million euros, 70 of buyers are non-resident tax. And over 20 million, 90 are from the Gulf and emerging countries. "It is a conservation of capital market, not on a housing market." Russian, Ukrainian or the prince of the Emirates which spend more than 60 million euro have in common to want to invest in a country the regime and stable currency. "Charles-Marie Jottras sees return to France of the French in London, under the double effect, he added, and the crisis of the tax shield. "The charges were until 2007 the main source of products to sell, the owners of a well over 10 million euros preferring to live in Switzerland and especially Belgium".

This narrow market, buyers may not establish the ratio of forces played in the cities is in abundant supply. So far, they have learned how to negotiate and sales promises sign today with a discount of 10-15 from the second quarter of 2008. "Sellers have agreed the price decline much faster than in the crisis from 1991 to 1995, where it had taken four years", like Charles - Marie Jottras, stressing that the notaries of the Parisian market sent late December values which were a reduction limited to 2 on Paris, corresponding to the registration of promises of sale from April 2008. "There is a lag of nine to ten months between the only reliable statistics and the reality of today.".

Rummage sale step

"Vendors have adapted and buyers play to the end but the great rummage sale will not take place." Feau President observed that, "on the basis of the price which took Act down, sales significantly grows". He announced an increase of more than 50 of its sales in March compared to the average of the last few months, and that April will be even better. "Prices will perhaps fall but over very long time in this market."

Actor in cutting sales operations, he noted that "people are very buyers", whether they are tenants of the premises or outside homebuyers. Evidence that the investment in residential real estate, tangible assets, begins to entice investors dépités by financial investments.