It is interesting to see this week’s article published by regional French newspaper, ‘Sud Ouest‘ which notes that in Bordeaux and other major cities, property prices have fallen during the past year.
The article, published on Wednesday 2nd November, states that: “in Bordeaux, the average price per square metre fell to 5,094€ on November 1, a decline of almost 1% over one year“. Paris is also reported to have seen a 1% decline and the trend is predicted to continue, a result of stricter financing conditions across France.
The Sud Ouest article goes on to quote Thomas Lefebvre, a director from online estimation site “Meilleurs Agents” who state the decline is being caused by higher interest rates and high market prices “reducing the purchasing power of households who are less able to afford to buy in large cities”. Interestingly they also suggest property prices on are the rise in country areas of France. Thomas goes on to comment that the number of transactions is slowing due to this downward trend, as homeowners refuse to accept a reduction in price and hold out for their sale.
At Maxwell-Baynes Real Estate, in the luxury sector we haven’t been impacted so greatly by these trends and have not yet seen a decline in the number of transactions or property prices in Bordeaux. The luxury sector relies less on financing or credit for purchases, with 90% of our buying clients purchasing in “cash” and therefore not impacted by interest rate spikes. The strength of the US dollar remains a point of optimism for the months ahead and the only limitation that we currently see in the Bordeaux luxury real estate market is the lack of inventory.
In Bordeaux, prestigious properties continue to be in demand, with the demand far outweighing supply in today’s market. Whether it’s a character apartment in Bordeaux’s popular Jardin Public district or a modern conversion or loft in the chic area of Le Bouscat , good quality properties with outdoor space are selling fast, often within 24 hours of being released on the market.
Contact us to speak to an expert from the Bordeaux real estate team at Maxwell-Baynes Real Estate.
info@maxwellbaynes.com