Luxury real estate: Jay-Z, Beyoncé, Murdoch, a market far from the crisis

Why is ultra-luxury real estate resisting?

Usually discreet, luxury real estate transactions open their hearts to the general public. The hit series The Agency, broadcast in particular on the Netflix and MyTF1 platform, participates, for example, in this craze for luxury real estate, against the backdrop of a popular saga, borrowing the codes of reality TV. The Kretz family has brought in the most incredible villas and apartments for sale in France, located in Parison the littoral coast and the popular mountain resorts, in daily household life. And if the siblings and their parents who launched themselves into luxury a few years ago are now reaching the stars thanks to a particularly lucrative business, it is because the luxury real estate market has beaten new records in 2022. Their transactions, very representative of a niche sector in full health, also highlights the growing divide between luxury real estate and a real estate ecosystem that is struggling to fight against the current economic fallout.

Despite a market that is tending to decline in the capital and a difficult economic climate, sales of luxury apartments and ultra-luxury houses have never been so good. THE luxury goods prices literally exploded last year unlike traditional Parisian property sales which have been falling for several months.

Promising events for ultra-luxury in Paris

If Paris is one of the most attractive cities for ultra-rich real estate buyers, it benefits from several factors favorable to the luxury real estate market. Starting with the Paris 2024 Olympic Games, which are expected to take place in the capital, a real boost for the real estate market. Desires of exile wealthy Parisians to London, held back by Brexit, are also contributing to the luxury real estate fervor in the City of Love. Finally, another striking phenomenon, once again focused on the broadcast of a successful planetary series, Emily in Paris came to reinforce the desire of American and English buyers to hold their pied-à-terre in the capital.

What types of real estate do celebrities capsize?

Although particularly buoyant in Paris, luxury real estate is not to be outdone international. Among luxury real estate investors, it is impossible to ignore the acquisition of stars. The latest, the American rapper Jay-Z and his wife ; Diva Beyonce ; offered themselves a california house for the modest sum of $200 million. If this extraordinary acquisition has made the rounds of the planetary news, it is because it holds the record for the most expensive real estate purchase price in the State of California to date, dethroning its predecessor sold at 177 millions of dollars. This little real estate pleasure, designed by renowned Japanese architect Tadao Ando, ​​with a total area of 2,780 m², enjoys a view of the Pacific Ocean, all located in what is nicknamed “the bay of billionaires”. A small whim of the gods, coming to complete the panoply of the luxury heritage already owned by the couple.

The owner of The Sun magazine and the American television channel Fox News has also been making headlines in recent days, following his brand new real estate acquisition. The billionaire has just afforded a 600 m² apartment, located across from the famous Central Park South in Manhattan. If the luxury real estate transaction, with top-of-the-range services, has been particularly talked about, it is not only for its price. Displayed at 30 million dollars, the sale price of the New York apartment was finally stopped at 35.2 million dollars, more than 5 million dollars above its initial price. So why Murdoch does he have overbid by more than 17% of the price good for this luxury apartment? Is it for its exceptional characteristics, such as its 6 bedrooms, its 7 bathrooms, its private elevator, its library or its bar? In the United States, the luxury real estate market is no stranger to this kind of practice. It is, moreover, a particular signature of the sector, for which it is common to see buyers offer a higher purchase offer between + 4% and + 5% of the sale price requested by the owner.

In summary

• With the success of the L’Agence series, the Paris Olympics and the attractiveness of a Paris watered down in the Emily in Paris series, luxury real estate in the capital has never been so good;
• The year 2022 broke sales price records in the luxury real estate sector;
• The American couple Jay-Z and Beyoncé have just acquired a house in California for 200 million dollars;
• Rupert Murdoch spent $5.2 million more to get a $30 million apartment in New York.