French Property Market 2020 Analysis
Why do we keenly analyse property markets? Well, their performance is a litmus test for understanding broader issues like economic performance and employment.
The goings-on in property markets is also indicative of consumer confidence, insofar as the volume of house listings, and actual sales.
Plus also reviewing the movements in property price fluctuations, i.e. are sales prices rising or falling can be indicative of business confidence and where the economy is at and again where it’s heading.
Notaires property report is a stable as a guide to the wellbeing of real estate markets including the French property market. Their latest news doesn’t disappoint in how it considers property prices, market movements, trends and of course, the impact of Coronavirus.
Property Values Up or Down?
What most property owners want to know is, is their home still holding its value. Most of us lucky enough to own a home, have a home loan up to 80% of the property value. When property values rise or fall, it’s the equity that changes.
Unless you’re selling your home, there is no need to worry about a fall in value. However, watching real estate markets is what we do and more so if we are property investors with a rental property portfolio.
Globally, real estate markets had followed the same trend, i.e. a dip in sales volume during the lockdowns and a rebound shortly after that when businesses reopened.
There has been no escaping a decline in property transactions and France, there was a 23% drop in property transactions volume during the first quarter of 2020, compared to the same time, a year earlier (2019).
Notaires report the greater Paris region shows sales volume in apartments from April 2019 to 2020 March dropped by 8 per cent but who wouldn’t want a home in Paris?
A market showing resilience, in much the same way property values in other first-rate cities around the world are holding up. For example, London and other parts of the UK have spiked in sales volume, and there has been an uptick in confidence in the rental market.
At the luxury end, sales of products, cars and homes are up in economic downturns.
The French luxury property market is leading by example with Barnes International Realty saying demand is suitable for homes on the Atlantic coast including Basque Coast, Ile de Ré, and Arcachon Bay.
GlobalPropertyGuide also suggests a dip and then a durable finish at the end of the year for French property.
Plus think of all that pent up need from the British, holidaying at home. A beautiful french farmhouse, Paris or Reims apartment or luxury home will be high on the list of must-haves for people fed up with long traffic jams to get to the beach and over-inflated seaside accommodation rates.
UK Summer 2020 will be remembered as one to forget for beachgoers and local councils dealing with the daily clean-up.
France has always been a top tourist destination, and the pandemic will not dampen holidaymakers desire to spend as much time there as their vacation leave will allow.
Securing a foothold in the property market in France is the dream of many foreigners. Purchasing a luxury home is the reserve of the wealthy. However, there are still bargains around in less accessible areas like Creuse or St Etienne. Plus many Europeans are used to and comfortable with tiny abodes, so they’re happy with a 22sqm apartment in Paris.
In contrast, Americans or Australians would prefer the spend the equivalent on a 151 sqm home in St Etienne.
The French property market has bounced back, but it isn’t predicted to last much past Summer. This will, of course, give the British time to work out how they will secure their place in the sun for summer 2021.