Previous Next

Great West: A Coastline that is Still Dreaming

The second home market experienced turmoil earlier, but it now seems to have regained footing as a drop in prices offers real opportunities for buyers.

With the crisis in the real estate industry, the market for second homes is still  affected by the decline in the number of buyers. Buying an apartment or a house by the sea is a luxury; due to the lack of confidence in the future, the French seem to have postponed their luxury purchase projects. In short, the second home market has grown weaker.

Only a few years ago, buying a second home was the dream of many French people. But the buying trends have changed over time. It’s been a long time since the houses were open from July 1 to September 15, and there are several explanations for this development. Women work and are no longer willing to maintain two houses, the economy does not allow people to afford two houses, and the French are spending more on travel leaving them with lesser amounts to make luxury purchases.

The only positive out of this news is that the decrease in number of buyers for second homes has resulted in a decrease in second home prices. There are plenty of opportunities for buyers everywhere close to the sea in the newly built as in the old property market.

The Overall Decrease in Prices
According to the West notaries, which recently conducted a study on the market for second homes in the Great West, prices of new apartments had lost 2.5% over the year at the end of December 2012, meaning an average price of €3,595/m2.

In the market for old houses, prices remain relatively stable for apartments (-0.1%), but more flexible for houses with an average value of around €220,000 (-2.2%). The prices for land continue to rise (+1.3%).

These are averages and do not necessarily reflect the reality of certain high demand markets. Nevertheless, opportunities arise even in very popular places such as La Baule, Dinard, Brest, Erqy, and Carnac etc.

Certainly, price reductions on the coast will never be spectacular, but trading margins increase. Now is the time to realize the dream of buying a second home by the sea. Especially because lending rates have never been as low as they are now.

Investing in a second home is like a gift we offer ourselves after having already bought a main residence. So why not take advantage of the low prices and low lending rates this summer?

Are You Planning to Buy a Property in France?

If so, Sextant Properties would be glad to help you buy your French home.

EVOLUTION OF HOUSE PRICES IN KEY RESORTS

                                                Average prices in the New Built                        Average prices in the Old Property