Why and how to invest in luxury real estate ?

You want to invest in luxury real estate but you are afraid to take the plunge? You wonder about the interest of investing in a luxury house? What precautions should you take to secure your investment? Discover the answers to all your questions.

Luxury real estate: a booming sector in France

Luxury real estate is the branch of the real estate sector that deals exclusively with rare properties with high added value. Prestige properties include: castles, mansions, contemporary houses, mansions, luxury apartments and villas. Their value is defined by four main criteria: rarity, location, services offered, and value for money. In France, prestige real estate took off again in 2015 and since then its growth has been steadily climbing. Whether in terms of sales volume or price, all the indicators for this sector are green. According to experts, one of the main reasons for this growth is the increasing population of high net worth individuals.

Why invest in luxury real estate?

• Luxury is a healthy sector in France

The luxury sector is doing well in France. Not only is the number of millionaires and billionaires increasing, but also more and more of them understand the value of prestige properties. In addition, there is an increase in demand from international clients and expatriates who are increasingly interested in prestige properties in France. Finally, there has been a real boom in the acquisition of second homes, which are also considered to be safe investments. All of this is contributing to the increase in prices, both in Paris and in the regions.

• Combining business with pleasure

Buying a prestigious property is above all investing for the future. Not only are you acquiring a good asset to prepare for your retirement, but you are also strengthening your financial security. The profitability of exceptional properties increases from year to year, so they promise better returns in the long term. Indeed, despite the crisis linked to the coronavirus pandemic, the luxury market is stable, which means that investors keep flocking to it. Investing in a luxury home also allows you to enjoy the prestige that matches your wealth. As we all know, to be wealthy, you have to work hard. So it's only natural that you should enjoy the fruits of your labor once you're on top.

• Luxury real estate is accessible in France

Contrary to popular belief, luxury real estate is not exclusively reserved for investors with large amounts of capital. The State has set up a set of laws and measures to facilitate access to this sector. Such is the case of the amendment of the Malraux law. Through this law, the public authorities offer tax reductions of 22% to 30% to investors who value exceptional properties that are part of the architectural heritage.

How to invest in luxury real estate?

• Take the time to let your project mature

As an investor, you need to get your project right before launching it. Whether you are selling, renting or buying a luxury home, everything must be mastered down to the smallest detail. To begin with, you must define your objectives and your criteria of choice. To do this, simply ask yourself the right questions. What are the reasons that justify your investment? Why choose this or that time to invest? Why choose this location and not another? Once you have decided on your criteria and objectives, define your budget, the one that corresponds to your objectives. Then, establish your financing plan. Once again, you need to review your project to determine its strengths and weaknesses.

• Use a specialized agency

By using a real estate agency, you benefit from the expertise and experience of specialists in luxury real estate. Not only do they know the local market better than anyone else, but they also know how to distinguish good opportunities from scams. Yes, the luxury real estate business does suffer from the phenomenon of scams. Dealing with a specialized agency also means benefiting from a range of services from the choice of investments to the preparation of the financing file, including tax assistance.