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The French real estate market is changing. After years of continuous increases, prices of existing housing began to fall in 2023. This trend was confirmed in the third quarter, with a drop of 4.1% for apartments and 3.3% for houses.
MD Mojave brings you a brief analysis of the market. For several years, we have been supporting individuals and businesses in their real estate transactions. An estimate, an opinion, a question, a strategy... we are here to answer your questions.
What are the reasons for this decline?
There are several factors that explain this development. First of all, mortgage interest rates have increased significantly in recent months. Indeed, the European Central Bank raised its key rates to fight inflation. These rising rates make credit more expensive for buyers, which reduces their borrowing capacity.
Then, the war in Ukraine also has an impact on the real estate market. Economic uncertainty linked to the conflict has led to a decline in household confidence. This drop in confidence translates into a reduction in demand for housing.
Finally, the health crisis also had consequences on the real estate market. Indeed, teleworking increased during the pandemic, which led some households to move to less expensive cities.
What are the consequences of this decline?
The fall in property prices is good news for first-time buyers, who will be able to purchase housing at a more affordable price.
However, it is also a source of concern for owners, who see the value of their assets decreasing.
It is difficult to say how much house prices will continue to fall. Some experts believe the decline could continue into 2024, while others believe the market could stabilize.
What advice for buyers and sellers?
For buyers, now is the time to get started! Prices are lower than they have been in several years. However, it is important to do your research before making an offer, as the market situation could change quickly.
For sellers, it is important to remain realistic about sales prices. Buyers are more cautious and less willing to pay high prices. It is also important to prepare your property well for sale, by having it visited by a professional.
And the situation in the Gulf of Saint-Tropez?
The situation of the real estate market in the Gulf of Saint-Tropez and the Var is similar to that of the French real estate market as a whole. Prices started to fall in 2023 and this trend is confirmed. In the third quarter, prices of old apartments fell by 5.1% and prices of old houses by 4.2%.
Luxury real estate in Saint-Tropez is still highly sought after, although prices are also starting to fall. Indeed, Saint-Tropez is a leading tourist destination, which attracts a wealthy international clientele. Buyers of luxury properties in Saint-Tropez are generally people looking for a second home or an investment. They are willing to pay high prices for a property located in a prestigious area, with a breathtaking view of the sea.
According to a study by the real estate consultancy company Knight Frank, the average price of a luxury apartment in Saint-Tropez is 1.5 million euros. The average price of a luxury villa is 5 million euros.
The fall in real estate prices is therefore also felt in the luxury market. However, the drop is less significant than in the market for more affordable goods.
Indeed, buyers of luxury goods are less sensitive to changes in interest rates and economic uncertainty.
It is therefore likely that luxury real estate will continue in Saint-Tropez in 2023.
In conclusion, falling property prices are a trend to watch. It could have a significant impact on the French real estate market in the years to come.
Les sources utilisées pour écrire cet article sont les suivantes :
L'Indice Notaires-Insee, qui mesure l'évolution des prix des logements anciens en France.
L'étude de la société de conseil en immobilier Knight Frank, publiée en octobre 2023. Cette étude fournit des données sur les prix de l'immobilier de luxe dans le monde entier, dont Saint-Tropez.
Les articles de presse suivants :
"L'immobilier de luxe résiste à la baisse des prix", Le Figaro, 20 octobre 2023
"Saint-Tropez : l'immobilier de luxe toujours recherché", La Provence, 15 novembre 2023
"Les prix de l'immobilier de luxe à Saint-Tropez devraient continuer à baisser", Les Échos, 2 décembre 2023
"Prix de l'immobilier : jusqu'où ira la chute ?", Le Figaro, 3 octobre 2023
"Quelle est l'ampleur de la baisse des prix de l'immobilier ?", La finance pour tous, 8 septembre 2023
"Pourquoi les prix de l'immobilier vont continuer de dégringoler", Capital.fr, 2 août 2023
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