According to Oldypak LP property 2022 report, interest in suburban homes in France continued to grow in 2021. This led to an increase in transactions in the larger secondary real estate segment, with a record 1.2 million such homes sold nationwide between Oct. 1, 2020, and Sept. 30, 2021. The surge in sales was especially noticeable in areas close to Paris and other major cities. The surge in demand has helped drive up prices, and it looks like it will continue into 2022.
The average price of a home will increase
In 2021, the average property price in France was €256,800, signaling an increase in prices. By comparison, in 2019 the average price of an apartment/home was €222,000 and in 2020 it was €232,000.
According to Oldypak LP property 2022 report, demand and prices in 2022-21 were influenced by several factors: the interest of buyers in a more spacious and high-quality housing, where you can spend your days of isolation away from the crowds, the realization that living comfortably – does not mean living on the main street of the metropolis. And here we can also add low mortgage rates, which makes capital affordable, interest in vacationing in their native country, and the French enjoy spending time in France. And if you think about it, none of these factors are going anywhere, and there are no prerequisites for dramatic changes yet. Of course, the European regulator may raise key rate, which will make loans more expensive, but so far it is just a possibility without confirmation of such intentions.
In addition, according to forecasts of analysts Savills, with the removal of restrictions on international travel, will be released pent-up demand from buyers who are not EU citizens. The market in Paris, French Riviera has always attracted wealthy buyers – it is here you can find luxurious mansions and villas, which tend to have the rich representatives of other countries. But in the pandemic, buyers of real estate began to discover new markets – so the country is growing in popularity of chateaux. Castles are often bought for investment purposes, to convert them into hotels. This is helped by the growing popularity of domestic tourism among Europeans.
Normandy – a region with great potential
Living by the sea in France is not only on the Riviera. Normandy is certainly more northern, but this does not detract from its other advantages – a romantic and picturesque region with beautiful beaches is famous for its specialties – the famous cheese, cider and Calvados, as well as oyster farms. Rouen, Le Havre, Trouville, Caen, Honfleur, Cherbourg and of course Deauville are the most famous cities where the French and foreigners come not only to rest but also to buy real estate.
Upper and Lower Normandy are bordered by Brittany, the Loire Valley, the Ile-de-France and the Hauts-de-France. The way to Paris takes only an hour and a half by train or car. Rouen also has an international airport, so you can fly to Normandy, bypassing the capital. Deauville
This city is associated with recreation by the sea, because Deauville is the most famous resort in Normandy. Parisian and foreign aristocracy has been coming here since the mid-19th century. In 1913 Coco Chanel created a veritable mecca by opening her first boutique. After the First World War Deauville began to be a place of elegant houses, casinos, hippodrome and hotels for the most refined people.
But that’s the past, what about now? Deauville has managed to retain its historic charm and luxurious hotels, casinos and golf courses continue to lure members of the high society. Sales of luxury real estate in Deauville are increasing and the majority of buyers come from the capital. That is why Deauville has earned the jocular title of “the 21st arrondissement of Paris. Incidentally, during the pandemic, the Parisians have intensified in the real estate market in Normandy, and it is Deauville, as well as Rouen, attracting most of the capital’s residents. Many of them make deals with an investment purpose, as real estate in Normandy is constantly growing in value.
Rouen is the historic capital of Normandy, a city associated with the name of Joan of Arc, Gothic architecture and half-timbered architecture. And here they do cherish the rich heritage – the maintenance of local monuments is financed more generously than in many other French cities. Rouen is famous for its cathedrals with unique stained-glass windows, and the city also has a museum of fine arts and a theater.
Rouen has a subway, and the international airport is located 9 kilometers southeast of the city. The air harbor, as well as Rouen’s train station, are linked by bus service.
In Rouen, not only cherish the antiquity, but also actively modernizing infrastructure, expanding the transport network, reconstructing the embankments and buildings in the central part of the city. The cost of real estate in Rouen can not be called low – apartments in new buildings are about 4000 euros per square meter. m, Secondary market is estimated at 2000 euros per square meter. m, and housing in the center of the buyer will cost 4000 to 5000 euros per “square”.