Explore the captivating luxury real estate markets worldwide, from Paris to beyond, thriving amid economic uncertainty and rising interest rates.

In an era marked by economic uncertainty and escalating interest rates, the luxury real estate sector continues to assert its allure, positioning itself as a veritable sanctuary for the affluent. Notably, in Paris and across the globe, this resilient market exhibits remarkable vitality.

While the overall real estate sales have plummeted to approximately 750,000 transactions in 2024—down from over one million in 2022—the luxury segment demonstrates an astonishing degree of stability. Properties priced between €1 million and €3 million are beginning to rebound after experiencing a 20% decline in sales during 2023. Even more striking are the ultra-high-end properties, those exceeding €5 million, which are particularly sought after, buoyed by an international clientele largely insulated from economic vicissitudes. Buyers who are not reliant on financing wield considerable bargaining power, further solidifying the appeal of luxury real estate as a favored strategy for wealth preservation.

Real estate, as an investment vehicle, remains one of the few avenues that offers a significant leverage effect, particularly in the context of credit. Amidst inflationary pressures, monthly payments are becoming increasingly manageable, thereby enhancing the attractiveness of real estate as a wealth strategy.

Emblematic Destinations

Within France, Paris remains an indispensable destination, with coveted neighborhoods such as the Marais, as well as the 6th, 7th, and 16th arrondissements, standing out. In these areas, prices per square meter can soar to two to four times the national average, yielding gross rental returns of up to 25%, as reported by Magrey & Sons. The interplay of inflation and real estate dynamics creates a leverage effect, making monthly payments more palatable for investors.

Beyond the capital, locales such as Saint-Tropez, the Arcachon Basin, the Basque Coast, and the alpine resorts of Val d’Isère and Courchevel continue to enchant affluent buyers. On the international stage, cities like Miami, Lisbon, Madrid, and Dubai attract attention for their favorable tax regimes and vibrant economies. Exclusive resorts such as Verbier and Aspen maintain their allure, while emerging destinations like Costa Rica and Mauritius captivate with their idyllic landscapes and tax incentives.

The luxury real estate market, with its unique characteristics and resilience, remains a compelling choice for the discerning investor, navigating the complexities of a fluctuating economic landscape while offering a sanctuary of stability and opportunity.