French Real Estate Market Review 2023
As a luxury real estate agent at PRESTANT Realty, I possess specialized expertise in catering to international buyers and sellers within the French market. This market report is designed to demystify the intricacies of France's real estate market as observed in 2023. My role as a partner at PRESTANT Realty equips me with a unique perspective, which I am eager to share with you. Through this market study, I aim to provide valuable insights and analysis. Join me as we explore the trends and dynamics that shaped the luxury real estate landscape in France last year.
International & Local Changes:
Last year was like a roller coaster in the macro-economic theme park. We had ups and downs with international quarrels, climbing inflation, and interest rates that couldn't sit still. And let's not forget our local rules and regulations in the Basque Coast's real estate realm – they kept us on our toes! From rental regulations to urban planning, and not to mention some tax changes, it was quite an adventure. But guess what? Our beloved Basque Coast's real estate market held its ground mostly in terms of pricing, but volume has been down significantly.
Prices:
There's been chatter about the prices, with whispers of a significant drop along our picturesque coast. But when we peek behind the curtain, it's a mixed bag. While fewer homes are exchanging hands, the market has been split among rare, singular homes, which are still fetching high prices, and the rest of the market has seen price hits up to 30 percent below the initial asking price. The properties most affected by the price drop usually have significant faults like heavy renovation work, noise issues, or atypical layouts or living styles.
Navigating the Market Currents:
As we sailed through 2023, we noticed a change in the winds. Our inventory of homes grew, but they weren't all the shiny, perfect gems buyers dream of. And while houses generally found new owners faster than apartments, we saw that everything was taking a little longer to sell. The market's evolving, shifting from a treasure trove for quick sales to a place where genuine sellers and thoughtful buyers come together. We're all looking for that perfect spot on the beach, and finding it takes a bit more time. Buyers are willing to wait until they see the perfect home rather than feel pressured to buy, like in 2021 and 2022, when inventory was low. This is typical in a real estate down cycle.
The French Way – Investing with a Twist:
In France, they have a unique way of looking at things, and real estate is no exception. Despite the economic roller coaster, France still loves to save and invest, often looking at their homes as more than just bricks and mortar. They are their little nests, their escapes to the seaside or the countryside. Last year, we saw a return to the love for second homes, making up most of our purchases here in the area. It's not just about saving money; it's about savoring life, the French way. However, primary residences are still strong sellers in the high-end market of Biarritz, as more and more families want the quality of life that the Basque Country offers. We are also seeing more and more foreign buyers, primarily American, who are choosing to reside in Biarritz and the Basque Country for the long term. Americans are attracted by the lower cost of living, lower interest rates, and favorable exchange rates, and some want to escape the political strife the engulfs daily life in the USA.
Tips for 2024: Embracing the Future with Confidence:
As we look forward to 2024, here are some tips to navigate the real estate waters:
1. Patience Pays Off: The market might be shifting, but that's no reason to rush. Take your time to find the perfect match for your dreams and budget.
2. Keep an Eye on Quality: Those 'perfect' properties might be rare, but they're out there. Look for homes that tick all your boxes – location, condition, and charm.
3. Stay Informed: Keep up with the latest market trends and regulations. Knowledge is power, especially when it comes to making big decisions.
4. Consider the Long Term: Think about how your needs might change over time. A home is more than just an investment; it's your future.
5. Seek Expert Advice: Don't go it alone. A good real estate agent is like a trusty compass, guiding you through the market's twists and turns.
As we begin 2024, staying informed about the evolving real estate market is crucial. Whether you are interested in purchasing, selling, or simply keeping abreast of market trends, PRESTANT Realty is committed to providing the latest insights. Feel free to contact me for a more detailed discussion over coffee. Wishing everyone a successful year ahead!
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