The property market is normally quiet over the summer period while sellers and buyers contemplate future projects. The start of the academic year is a good time for the market to regain its pre-summer momentum... But will the 2021 autumn property market behave in the same way as in previous years?
Despite unique national and international circumstances resulting from several lockdowns, and continuing uncertainty both in terms of the health situation and economic consequences, the real estate sector registered a record number of sales before the summer, exceeding those of the 2000s!
A total of more than 1,130,000 sales were concluded over the 12-month period leading up to the end of May, according to the Notaires de France.
This huge number of sales can be explained, on the one hand, by the delay of some sales caused by successive lockdowns and low mortgage rates facilitating real estate transactions and, on the other, an underlying trend explained by the Notaires de France in a note published in July 2021.
“Property has always had a special place in the heart of the French. But, today, it no longer appears to be for the purpose of investment, as a form of security or for profit, but rather represents a desire for an improved quality of life and a change - perhaps temporary - in the way we think,” they explain.
And this increased awareness about, and search for, quality of life could be a key factor in determining the real estate market this autumn.
Investing in real estate is first and foremost, a question of lifestyle. Are you moving just to get a good deal or for greater comfort? Having put your project on hold over the summer, have you now focused or decided on a particular type of property? Are you thinking about a top floor flat with a view, a family flat for entertaining or maybe you’ve decided that you can’t live without some proper outdoor space and are contemplating a garden flat in one of the city’s quieter districts?
Answers to these questions will set the trend for the market recovery and be crucial in determining your project. The number of properties available at the end of the summer will nonetheless be critical to business recovery and will have an impact on price (because of the tension between supply and demand) and choice for buyers.
When it comes to your property project, entrust your search to our Engel & Völkers agents, who are experts in high-end Paris real estate and will be able to introduce you to exclusive properties that are highly sought after by discerning customers like you.
Real estate remains a good bet, a form of security for the future and a financial investment. This is a constant trend. However, it will be important to monitor price developments in the capital in the autumn as there has been a marked slowdown in price growth in certain areas and record highs in others (some central districts, including the 6th and 7th, report prices that far exceed the city’s average of 10,000 euros/m2 - in turn averaging 14,000 euros/m2). This significant decline can be linked to a shift in interest from the capital to the suburbs. For the same price, purchasers can buy a larger property with an extra room or a garden. Which is why property prices in Neuilly-sur-Seine, Levallois-Perret and Boulogne-Billancout are reaching record levels, despite the sluggish economy.
Another trend and driving force affecting a still uncertain market concerns mortgage rates. Although rates remain very low, and especially for buyers with excellent profiles who may borrow at a rate lower than 1% over 20 years, advice from the HCSF (High Council for Financial Stability) could restrict access to mortgages, interfering with the plans of both buyers and sellers who may choose to delay their move and wait for a better time.
However, real estate remains a safe bet and a good investment during this period of instability.