Luxury real estate: is it accessible to everyone?

The optimal conditions for buying real estate facilitate access to property. And this even for luxury real estate! We tell you everything!

The luxury real estate market, within everyone's reach?

After being severely affected by the crisis, the real estate sector is gradually picking up again and this also concerns luxury real estate. We tend to believe that luxury goods are reserved for the very wealthy, but is this really the case? Haven't they become within everyone's reach?

Proven sector recovery

Thanks to extremely low interest rates, stable prices and an improving economic climate, the luxury real estate market is doing better and better. This finding that was made last year continues this year.

At the same time, France regained the podium of the most attractive destinations for luxury real estate, in third position after Spain and Portugal. A study conducted by Lux-Résidence.com reveals that 47 % of buyers surveyed are more confident about a positive future for the French economic context (i.e. 23 % more than 6 months earlier), which explains the renewed interest for luxury real estate in France.

Real estate professionals have also been able to make this observation. And to unearth the property of their dreams, buyers are ready to call on experts such as the property hunter activates all its networks in order to find the rare pearl.

What is the profile of buyers in luxury real estate?

This study carried out by Lux-Résidence.com paints a portrait of buyers in luxury real estate. Thus, 8 out of 10 buyers are over 50 years old and a little more than half of them (55%) are still in professional activity. And, for 27 % of them, their annual income amounts to more than 200 000 €. Finally, for 57 % of these future buyers, the search is for a second home for a budget of more than 1.5 million euros.

We can therefore deduce that this market mainly appeals to those who want to prepare for their retirement. This is also why the Côte d'Azur is experiencing a resurgence of interest, as is Provence. The capital only comes in 3^th position.

Such a resurgence of activity has also aroused renewed interest among buyers living abroad for the French high-end market. This is particularly the case for those living overseas.

An opening of the sector for all investors

Between perfect conditions with low interest rates and first falling and then stable prices, luxury real estate brings together good conditions to become accessible to more investors. A fact accentuated by certain laws put in place by the State. Indeed, if previously the Malraux law was mainly accessible by the wealthiest, it now allows more modest investors to invest in high-end real estate.

The purpose of this law is to help investors who wish to carry out renovations in dwellings that they will subsequently rent. Under this law, the amount deducted from taxes depends on the amount of work. Also, the greater the work undertaken, the more attractive the tax reduction. And, once the work is done initially, you have peace of mind for a long time.

In addition, you have the possibility of tax-exempting the rents that you will collect. All these small accumulated advantages make luxury goods accessible to more investors.

Finally, if access to these goods is becoming more democratic, it is because they are increasingly successful. What makes more and more investors turn to this type of property is that the buildings concerned have an architectural and historical interest which makes them safe bets. And, they are easier to resell later than standard housing.

Photo by Adrien Olichon/Unsplash