The luxury real estate market has been deeply impacted by the Ukraine-Russia war and the COVID-19 pandemic, creating a shift that has left property owners increasingly anxious. In what has become a buyer's market, owners of properties valued at over €5 million are growing fearful about the future of their investments. Even in traditionally desirable locations like the French Riviera, the market is becoming increasingly difficult. Properties are proving heavy to sell, with lead times stretching up to 8 years. While hotspot locations may retain some appeal, the once sky-high demand has softened significantly.
Adding to the challenge, buyers are now scrutinizing not just the property itself but also the broader context of the country in which they are purchasing. Factors like political stability, economic conditions, and how well the country is organized are becoming increasingly important, with places like France facing particular scrutiny. At the moment, many clients are leveraging heavily, partly as a strategy to shift risk to the banks if something goes wrong. This complex landscape is driving property owners to urgently seek alternative selling strategies, with some considering auctions—once unthinkable—while others explore options like investing in gold, driven by the fear of losing value in these uncertain times.