Interview with… Claude-Olivier Bonnet, chairman of CNASIMMO, the employer’s association for sales agents and independent agents.

How does your association intervene with independent real estate agents?

Claude-Olivier Bonnet: Alongside the consulting and information services we provide our members, we would like to develop the job of independent real estate agents with the cooperation of the public authorities.

We are working towards a regulatory certification for the profession in order to better structure and organize it. BARNES is one of the networks with the best practices in that area, ensuring that their partners – independent agents – display the right professional expertise to satisfy their clients. An easier access to the profession and compulsory training are our two main focuses in order to obtain a European certification, modeled on what has been done in the United States for real estate agents and in France for various professions.

What are your thoughts on the luxury real estate market?

Claude-Olivier Bonnet: It has now been three years that Paris luxury real estate has been on an upward trajectory. Demand remains high; Paris has always been an attractive city for French citizens and is becoming increasingly attractive to foreigners.

The same observation is valid, albeit to a lesser extent, for France, especially along the French Riviera and at beautiful ski resorts. The trend shows no sign of slowing. Just like three-four years ago, the luxury sector is not affected by the recession. For a long time a driving force, typical foreign buyers, mostly Europeans (Italian, British), are gradually being followed or replaced by buyers from “emerging countries” such as Brazil, India or China.

A new customer base which is moreover able to self-finance their property investments and therefore does not rely on bank financing. All this contributes to maintaining high prices in the luxury real estate in Paris.

How will the real estate market evolve in 2012?

Claude-Olivier Bonnet: Unlike the luxury market, the middle market requires financing from banks which are increasingly cautious in their lending. In 2012, it’s that sector and the traditional real estate market that may experience a decrease in sales or at least very slow growth.

The new regulations and tax provisions related to the secondary homes market is going to impact the market because sellers will be more reluctant to sell their property – given the amount of taxes to pay – and buyers will take time to think before investing. Nevertheless, it is important to note the good news: the entry into force of a regulation allowing extensions of up to 40 m² (instead of 20 m²) of existing buildings in urban areas without the need for a building permit.

Prices and demand should remain high throughout the luxury market. Paris and Neuilly, even the inner suburbs, the French Riviera, a few holiday places in France, some high-quality seaside and mountain resorts – like Courchevel – retain a high level of attractiveness, a key strength for quality real estate on site.