New lockdown in France: What are the impacts on the real estate market?
A new lockdown started, real estate agencies are forced to close and visits have been entirely forbidden. Will the real estate market recover from a second stop?
Uncertainty of the situation
At French Private Finance, we see a similar trend today that it was during the March lockdown. Due to uncertainty of the situation, we have received a mix of feedback. Profiles targeting properties in high end resorts are still keen to go forward in their property transaction (September and October 2020 have been our busiest 2-month period for the last 18 months, especially in the the French Alps, in Val d’Isere, Courchevel, Meribel…) but some others, maybe looking at more traditional properties in remote locations are hesitating but are still trying . We have seen a drop of new enquiries but the appetite from the non-resident market is still there.
We have observed a peak of traffic on our website for the past month which means that property buyers are waiting for the situation to “unlock” to go forward. Also, French banks are still taking in applications so the lockdown is not stopping us, though it might generate some delays…
What is next?
As real estate agencies are not considered essential businesses, they will have to remain closed. According to Fnaim, the lockdown’s impact should not be as severe as it was during the spring. November and December historically represent half of spring’s transaction.
We expect, as it was in spring, a huge wave of new enquiries at the end of France’s lockdown. Banks should be much more strict on the conditions required to obtain a mortgage and huge delays could be observed.
When you are trying to purchase an off plan property, the positive outlook is that you don’t need to…. visit it! Which makes it the perfect lockdown treat for you and the family!