Real estate trends in 2021

real estate rural area

Due to the global pandemic, the real estate market of 2021 has seen the emergence of many trends. In this article, we will detail the latest trends in the French real estate market to consider if you are planning to buy or sell a house in the near future.

 

Small inventory

In 2021, there was not enough houses for sale to meet demand. For buyers, this means you will need to be more open-minded and broaden your search, as well as have a good understanding of your credit capacity.

For sellers, 2021 has presented incredible opportunities. The salespeople were in full control and could choose the best deal at their own pace. However, if the 2021 sellers sold their principal residence, they subsequently had to deal with a difficult buyer's market ...

 

Rising price

Over the last twelve months, the price of French property has thus shown an annual increase of 6,6%, against + 4,7% in 2019 and + 3,5% in 2018. If you are going to buy a house in this market dear, you absolutely need to know how much house you can afford. Commit to sticking to that budget, regardless of the pressure you feel watching competitors buy the homes available on the market.

 

Increased demand for rural areas

Due to lockdowns and the subsequent increase in remote working, demand for real estate in rural areas has increased 6,4% in just one year. This is not too surprising, as the closures have made it unjustifiable to pay more to live near the amenities of big cities. In Paris, real estate in the city center has fallen by 1,5% since September 2021, and increased by 8,3 in the suburbs.

Being locked in small, expensive apartments in city centers has helped create a demand for full-size backyards, fresh air, patios, and larger living spaces.

 

Houses instead of apartments

In 2021, houses are widely preferred over apartments, causing house prices to increase twice as fast as apartments. According to CSA, 84% of French people consider owning a home as a major life objective. A house is no longer seen only as a place to eat and sleep, but also to live. According to the same CSA study, 94% of French people plan to invest in improving their housing instead of paying for their vacations. Home improvement stores have seen their turnover increase by 30% since 2019.

Additionally, additional rooms in homes often allow for a home office, which is becoming an increasingly important criteria.

basque house

 

Increased demand for older properties

The volume of sales of old goods over the past twelve months reached 1 transactions at the end of May 130, a record level since 000. Goods that then met a predominantly local demand are now sold to a wider range of people. .

This was first felt specifically for older houses around the capital, with Parisians showing a marked tendency towards smaller towns, mostly located in the bordering departments. It is also a trend in other cities in France.

old house

 

Low interest rates

Despite some fluctuations, interest rates remain low; the average interest rate on new mortgage loans hit a new low of 1,15% in April 2021, and thus helps to maintain a high volume of transactions.

In addition, the French now consider it less necessary to save. Many have redirected their spending towards well-being and a better living environment.

 

Boom in “semi-main” residences

This means that people can keep a pied-à-terre in the city, while still enjoying life in a "country house" or by the sea (not just on vacation) on a regular basis. The very low interest rates on mortgage loans and the sharp increase in the number of people working from home are said to have contributed to this change.

The increase in remote working has had a significant impact on the real estate market as many workers are no longer tied to a physical location. Since the pandemic gave business owners and workers a taste of reduced costs, the elimination of commuting, more efficiency and a better quality of life, many companies have decided to implement remote work indefinitely. Almost half of teleworkers plan to spend half the year in their second homes.

 

Boom in medium-sized cities

Medium-sized cities are also benefiting from trends, notably Brest, Angers, Reims, Quimper and Orléans. The city of Limoges (133 inhabitants) climbed to fourth place in the Top 000 of the most sought after cities, along with Nice, Lyon, Toulouse and Lille. Prices rose 5% in Limoges, a city that attracts more Parisians and Bordelais. Transactions also increased by 17% in Valence and 17% in Cannes.

Le Pays Basque also have experienced an increase of its inhabitants in recent times. With the Covid-19 epidemic, the quality of life in the Basque country is attractive!

 

En conclusion

With real estate trends closely tied to the economy and work habits, these emerging changes should come as no surprise. In the months and years to come, we are likely to see even more people doing all they can to make their daily lives more enjoyable instead of waiting for the holidays to spend time with their family in beautiful surroundings.

On top of that, the job market will become increasingly digitalized as AI gradually replaces manual labor in all industries.

Speaking of real estate, if you are looking to buy or sell a house in the Landes or in the Basque Country and you want help navigating the local market, do not hesitate to contact us by clicking HERE or by using us calling +33 (0) 6 64 55 77 49.