Update on real estate prices in the Basque Country | June 2022

Basque Real Estate Market

For almost 10 years, real estate has continued to break records in terms of the number of transactions with increasingly high average prices.

Regardless of the geopolitical or health situation, real estate has positioned itself as a safe bet, especially in the Basque Country and in the Landes, two places that offer an exceptional quality of life thanks to their proximity to the countryside, ocean, countryside, mountains, and sports activities (plus a TGV to Paris of only four hours).

Basque living environment

 

Other post-COVID priorities

Migration to small and medium towns is noteworthy in this “post-COVID” world, and high demand has made the Basque Country/Landes much less accessible for average French households.

Price increases have intensified in medium-sized towns, at the same rate as buyers' interest in these areas is growing.

The crisis has created new trends and made the inequalities between those who can and those who do not have the financial means more obvious.

 

Fewer transactions, higher prices

Now, we can finally see a slowdown in the volume of transactions. There was a 15-20% drop in 2022 after the record year of 2021 with 1,2 million property transactions recorded by property portals like TopAgents ou Housing.

On the Basque coast and the Landes, we can also see a drop in the number of sales.

Why?

Shortage of goods for sale : Fewer real estate choices increase property values. What is rare becomes more expensive!

Demand remains strong: As demand remains strong with little supply, the consequence is higher prices.

The increase in the prices of materials and construction costs: Today, the costs of renovations prevent the desire to buy, since there are often some renovations to be done after the purchase of a house or apartment.

Increase in interest rates:  Rates are now at 1,4%, which makes shopping less accessible than before for those who need a mortgage.

The impact of the measures governing seasonal furnished accommodation: In March 2022, elected community officials elected new regulations aimed at curbing the development of furnished accommodation in the Basque Country.

With these new measures, the supply/demand imbalance should be rebalanced, and the real estate market will certainly be able to respond better to the demand for traditional rentals.

On the other hand, on the premium market, these properties will remain purely second homes, since there is no annual rental market for prestige properties. It will have more closed shutters.

 

Inflation – A Good Thing?

Inflation has helped previous generations to build their real estate assets, so it could be for the next few years something that helps buyers to realize their real estate projects in the Landes and Basque Country, despite a rise in interest rates.

 

More questions about the Basque or Landais real estate market? Contact us!

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's trust each other and come introduce ourselves your project !