Luxury real estate withstands the crisis
One year later, the Covid crisis is still very present. It has impacted, sometimes heavily, many economic sectors, including real estate. On the high-end segment, after two very successful years (2019 and 2020), we could fear a complicated 2020. It did not happen: the french market is doing well and even recorded a 10% increase in sales of goods.
A market refocused at the national level
Due to travel restrictions between countries, foreigners, who represented the largest contingent of buyers in France, have been replaced by French people, eager to change their living environment. The latter were very active in 2020, taking advantage of a promising market and stable prices, even slightly up in certain sectors. The regions have benefited from an unprecedented interest in provincial residences, which respond to desires for space, greenery and are perfectly suited to the explosion of teleworking, but also to the constraints of confinements, curfews and others sanitary measures.
What impact in Provence and on the French Riviera?
For Sanhen Properties, this change in behavior has resulted in a significant increase in the number of requests from potential buyers, despite the postponement of visits and travel constraints. Moreover, the South region remains number 2 in France, behind the Ile de France, with 25% of requests. The specific typology of our geographical area (quiet, sunny properties, with large lots, pleasant for teleworking, close to a metropolis and major communication routes) has enabled us to attract certain French buyers wishing to improve their quality of life. And unlike some areas, such as Saint-Tropez, Cannes or Nice, we were ultimately little impacted by the absence of foreign buyers. Many villas were quickly sold with little or no negotiations, sometimes at prices 5 to 10% higher than in 2019. As a result, the number of properties for sale has fallen sharply and finding new properties will be certainly one of our main challenges in 2021.
2021: optimism despite uncertainty
The 2020 trend should probably be confirmed in the coming months. Real estate remains a safe haven in times of crisis. The market is very dynamic thanks to the realization of purchasing projects, accelerated by the successive confinements and the “elsewhere” desires of most of french citizens. A positive development in the health situation and the potential return of foreign buyers this summer could reinforce this trend. To be continued ...
