July is Inman’s luxury month. Tune in as we investigate the evolving luxury market, explore emerging trends, and speak with top producers and influencers in the ultra-luxury space about how they got to where they are today and the insights they’ve gained along the way. The month will culminate with the live announcement of the expanded Golden I Awards at Luxury Connect in Las Vegas (July 29-30).
After a busy season of international sporting events, the 2024 Paris Olympics finally reach their peak.
The Paris Olympics officially kick off today and will attract visitors from around the world eager to take in the sights, sounds and tastes of one of Europe’s most popular destinations. But will it also become a springboard for travel and property deals further afield?
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A long-standing example of tasteful luxury, the French lifestyle embodies “quiet luxury” and in more remote areas, the “quiet living” travel trend has taken off over the past few years. These trends reflect the growing demand for understated luxury living and their travel needs, with travelers seeking calm countryside and secluded beaches for a calmer travel experience.
When people head to Paris this summer for the Olympics, will they pick up on these trends and embrace them in real estate?
The France-based luxury agency said the positive impact on the market was likely to be delayed given reports of unusually low tourist demand, but could still come late in the season as a “showcase effect” after the city’s assets were highlighted on television. Appear some time. Many Parisians reportedly fled the area during the Olympics.
Clinton M. Perot-Schwartz | Engel & Volks
“My sense is that things will remain relatively calm over the remaining months of the summer, with activity expected to likely increase in September and October as people return to cities,” said Engel & Völkers consultant Clinton M. Perrot-Schwartz. .
Despite fewer in-person visitors this summer, the Games still have the potential to serve as a bridge to the country’s quiet luxury market.
Travel demand to Olympics less than Olympic size, but agents not worried
The Games are Europe’s first since London 2012, and Paris appears to have overestimated tourist demand for the event. As of early July, occupancy rates were down 25% from previous years, and hotels had cut prices by about 40% from a year ago in order to reserve rooms.
The city has also implemented various travel restrictions, designating a number of zones and regulations for passing through them based on mode of transportation. Notably, all three Paris airports will also be closed on Friday (the night of the opening ceremony) as the area becomes a no-fly zone.
The city has been quiet, with few locals or tourists hanging out, agents said.
“As of today, the number of visits to the apartments is significantly lower because many Parisians left the city during the Olympics,” Perrault-Schwarz said in the last week of July. “The usual influx of tourists does not appear to be as expected, with many international visitors, including many of my American clients, choosing to postpone their trip to Paris until after the Olympics to avoid the expected crowds.”
Historically, however, Olympic host cities are likely to experience a boost in tourism following the Games in response to media coverage of the Games and the resulting visibility of infrastructure improvements. Perrot-Schwartz pointed out that the extension of Paris Metro Line 14 now connects directly to Orly Airport, an improvement that will help both locals and tourists.
“Overall, I believe these developments will enhance Paris’ reputation as a premier destination for tourism and real estate investment.
Marie-Claire Sanouard Engel & Volks
Marie-Claire Sangouard, Managing Director of Engel & Völkers Côte d’Azur, added: “For the Olympics, these cities are putting their best foot forward, which has the added benefit of renewing and expanding the real estate stock and its surrounding areas. Ultimately, real estate prices will be better off as a result.
Other France-based luxury real estate experts told Inman that the country, and Paris in particular, has enduring appeal to U.S. and other international investors, so events like the Olympics are unlikely to have much of an impact on potential buyers.
“There have always been American buyers in Paris,” Marie-Hélène Lundgreen of Christie’s International Real Estate’s France Beautiful Homes told Inman. “They account for 25% of our international buyers, so this is the most important quota after European buyers, [which] Accounted for 32%.
Frederick Bass | Sotheby’s International Realty
With there already being such a strong affinity for American buyers in Paris and across the country, Frédéric Bass of Sotheby’s International Realty on the French Riviera in southern France said the Olympics are largely irrelevant to his local market.
“The Paris Olympics are unlikely to have a significant impact on Côte d’Azur real estate, especially for U.S. investors who are already familiar with Europe and frequently visit destinations such as Italy, Paris, the Côte d’Azur, and Spain,” Bart said in a letter said the email. “The Cote d’Azur already has a great reputation and doesn’t need a boost from the Olympics.”
calm life
Agents agree that France, of all places, knows how to create “quiet luxury,” a trend of understated luxury that showcases wealth and taste in a more restrained way that has taken the luxury world by storm. As it grows in popularity, its grasp of the trend may help bring more attention to the country’s lifestyle.
“Isn’t the definition of ‘quiet luxury’ the epitome of French luxury? Sophisticated and discreet?” mused Sanguar of the Côte d’Azur.
Delphine Gilbert-Avitan | Sotheby’s International Realty
Delphine Gibert-Avitan of Propriétés Parisiennes Sotheby’s International Realty says the French real estate market is indeed reflecting this trend “through an emphasis on timeless elegance, high-quality craftsmanship and discreet sophistication.” “Properties often feature high-quality materials, historic significance and thoughtful design, prioritizing comfort and privacy over showiness. This trend coincides with the French appreciation of refined sophistication and lasting value, who prefer tranquil privacy A residence, not a flashy display of wealth.
In its summer travel report, Pinterest noted that with the rise of “quiet life” travel, the trend of quiet luxury has also penetrated the travel industry in a fashionable way. Since last summer, searches for “quiet place” and “calm place” have increased by 50% and 42% respectively, with many travelers seeking a digital detox. According to Pinterest, other most popular components of quiet life travel include solo travel, wellness retreats, “country vibes,” country and island living.
Travelers who decide to explore Paris and the rest of France during or after the Olympics may find themselves slipping into a life of luxurious quiet.
“As for the South [of France]Rentals and sales are not to be outdone due to the continued favorable climate and the influx of Parisians who would rather leave the capital during the Olympics or simply go on holiday,” said Sanguard. “Tourists from all over the world are also taking advantage of the Olympic Games to continue or start their journeys in the south of France to enjoy the French lifestyle.”
Butt said those seeking quiet luxury and a quiet life might be drawn to the Outback, with its stone homes, wooded grounds and tranquility. He added that some of these areas are experiencing a growth spurt as these quiet spots attract more tourists.
“In terms of property activity, this trend is now promoting the development of charming villages that were previously overlooked.”
Americans, don’t be fooled
Agents in France say one of the biggest misunderstandings they encounter when working with the Americans is that the deal will be done in a similar way to the United States. But things were handled very differently.
Sonia Clark | Engel & Volks
“Things are slower, less transparent and very bureaucratic in France, so they should take the time to choose a good agent who can walk them through everything in their own language and who understands what ‘service’ means,” Engel & Völkers Côte’s Sonya Clarke-Dazur said in an email. “The French way of life is ‘charming’, ‘quiet luxury’, it’s perfect once you settle in, but it can be frustrating when you want to buy a property – if everyone is enjoying one A nice lunch instead of working nights and weekends…well, you can see how that would go.
Ultimately, Sanguade said, this “bureaucratic” process is about protecting buyers and sellers, which is good for U.S. investors.
Once an offer is accepted, the deal can take months to close, and most documents are written in French, meaning many Americans may need to hire translators or bilingual lawyers, Guibert-Avitan added. services.
Perrault-Schwartz, an American who married into a French family, experienced firsthand how French transactions differed from those in the United States and used his dual experience to help American clients.
Mary Helen Langley | Mary Helen Langley Christie’s International Real Estate
“I try to bridge the gap with my customers and make their buying experience as seamless and stress-free as possible,” Perrott-Schwartz said. “For me, there is nothing more satisfying than helping fellow Americans successfully and expertly navigate the French real estate market.”
Those differences and potential additional obstacles aside, Lundgren said, Paris in particular represents the realization of a lifestyle many Americans dream of, which makes it all worth it.
“[Americans] Do not buy property in Paris for investment purposes for business reasons,” Lundgren said. “It’s just for fun because this is Paris. It’s the clients who tell us this is the most beautiful city in the world. It has everything to offer.”
The 2024 Paris Olympics could give that dream a further boost.
Email Lillian Dixon
