It’s been a turbulent year for real estate markets the world over with many paused during confinements, but the French market has picked up due to pent-up demand, especially the suburbs.
The real estate market has proven itself to be surprisingly resistant to Covid! In 2020, 980,000 properties sold, which was only 8% less than in 2019, and not the collapse that many people might have feared a year ago. It was also higher than the figures for 2018 and 2017. So what happened to prices? They held up well, increasing by around 2% in 2020. This means an average of €2,800 per sq m. However, there has been a change in culture with many people choosing to move to properties with more outside space and many buyers turning to the suburbs, or beyond. Regional metropolises have shown the biggest price increases. Another interesting trend is the appetite for more space – the demand for houses is up 10 per cent; whilst the demand for apartments is down by 9 percent. So will the real estate market remain as strong in 2021? Everything will depend on how the epidemic unfolds. Covid has caused correction but not collapse.
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Property ref: 53099VC16