Basque Country | Update on the real estate market November 2022

Basque country real estate market

Regardless of the geopolitical situation, real estate has positioned itself as a safe bet, especially in the Basque Country, a place that offers an exceptional quality of life thanks to its proximity to the countryside, ocean, mountains, and sports activities (plus a TGV to Paris of only four hours). Read on to find out the current state of the Basque real estate market in November 2022.

 

The voltage drops

With more sellers and fewer active buyers, the tension on the real estate market on the Basque Coast observed in recent years is decreasing.

 

Prices remain high

Even if the volume of transactions in 2022 compared to the volume in 2020-2021 has reduced, it remains above the pre-covid level.

Factors influencing this situation

  • A complicated economic context due to the stagflation generated by the health crisis (problems of shortages and supplies) and the massive monetary creation of support from European central banks.
  • A complex geopolitical context with the most uncertain consequences (rise in energy prices, inflation)
  • The drop in stock market indices since the beginning of the year offers less leeway to reinvest any gains in real estate.

Bayonne real estate market 2022

 

Real estate costs are higher

Credit costs

In just one year, borrowing capacity has completely changed. In the meantime, he had a doubling of the cost of credit. To give you an idea, borrowing $1 over 000 years is about $000 more expensive today than a year ago.

Construction and renovation costs weigh on the property to be renovated

Renovating a property costs on average €1 more per m000 today than 2 years ago.

This increase in the cost of work is accompanied by an extension of the deadlines for completion by the craftsmen, which weighs negatively on the purchase of a property to be renovated.

 

Second homes shaken by regulations

The investment for second homes has been affected by the regulations for these types of goods. This rule, which will apply from March 1, 2023 will only authorize seasonal rentals from 2025 to owners in their main residence.

Buyers who planned to finance part of their second home through seasonal rentals are suspending their plans, or revising it downwards.

 

The Basque Country retains its attractiveness, especially for international customers

The return of international customers as buyers on the Basque coast and the historically low level of the Euro against the Dollar or the Swiss Franc in particular encourage American or Swiss customers to invest in the Basque Country.

 

The deficit of new housing helps to maintain the price level

The lack of launches of new housing projects in the face of the influx of newcomers has helped maintain a record price level, despite less pressure. Even though prices remain high, they are trading more frequently than before.

 

Basque residential real estate does more than resist

Despite the negative factors of the current situation, we observe the realization of beautiful transactions in the Basque Country. Real estate in the Basque Country is a safe haven whatever the crisis.

 

O'Plus Real Estate | Other real estate

The creation of'O'Plus Real Estate comes from the notoriety of the brand and the excellent reputation of Brocante O'Plus, present in Anglet for nearly 30 years and the desire to sweep up traditional real estate, to dust off methods and above all to refocus on human relations. Trust, respect and honesty are key values ​​that are all too often flouted in this profession.

So, let us trust each other and come and present your project to us!