Coronavirus: what impact on Parisian real estate?
How is the real estate market in Paris in this period of lockdown? Real estate is on hold and we don't know what to expect at the end of this crisis. At Parlemoi de Paris, we talk to you about the impact of the coronavirus on Parisian real estate.
The real estate market on pause
Who says confinement, says physical closure of real estate agencies. Visits are stopped and the processing times for files are extended. Since the start of lockdown, both buyers and sellers have been withdrawing from the market, leading to a marked drop in transactions. However, some sellers are in need of cash. It is obvious that sales processes are a matter of course done remotely and on very small volumes. Buying real estate is a big investment and in the current context, virtual visits are sometimes not enough to commit to a purchase. However, many professionals think that the lockdown should only affect the real estate market in the short term, as it still meets its role as a safe haven.
Is real estate still a safe haven?
Despite the lockdown, real estate meets a need for security. It still maintains its role as a safe haven. No one can say for sure what awaits us, but it is certain that the Parisian real estate market remains unique; supply has always been overwhelmed by demand. In this logic, the Paris market will be less affected than other regions and demand could continue, especially for high-quality apartments. Overall, the Paris real estate market could resume quickly, without any unpleasant surprises, unlike the real estate shock of 2008. The government quickly proposed important measures to support the economy in the face of this health crisis. The objective is, among other things, to stabilize interest rates and to mitigate the impact on real estate.
Towards a fall in the Parisian real estate market?
Since 2014, the price of real estate in France has continued to rise. In March 2020, the price of real estate in Paris was on average €11,014 per square meter. The Covid-19 crisis should slow the increase in real estate market prices. However, this drop in prices could only be in the short term or in the medium term, as Paris remains very popular with foreign investors. This drop would then prove to be only ephemeral. However, you have to remain vigilant. A drop in prices is not ruled out.
Our advice for preparing your real estate project
If you have a real estate project, whether it is a purchase, a sale or a rental, the lockdown period is the time to settle down, refine the financing files and gather all the information necessary to be clear on your plan. Even at a distance, it is entirely possible to have a property appraised by professionals. Finally, we advise you to call on real estate professionals to support you in the best way, especially during a period of lockdown: the crisis is making processes more complex.
The “before and after” of this crisis in real estate
Les real estate hunters must be full of creativity. Digital tools are becoming their best allies in supporting customers even in times of lockdown. But technological innovation must also be associated more than ever with relational qualities. Listening and agility will be essential after this period of confinement to guide its customers in the best way.
In cities where demand is high, the real estate market will resume normally. In Paris, owners who are not in a hurry to sell will maintain their price. While sellers who need cash more urgently will accept offers that are slightly below their selling price. So at the moment, the forecasts are quite positive. According to most professionals, the real estate market should suffer, before catching its breath. Let's keep in mind that Parisian real estate is one of the most attractive in the world.
Olivier was able to help us find the right property for us. He listened to us and was full of suggestions. His advice was invaluable at every stage of our search and right up to the negotiation of the property. A big thank you!
I embarked on the adventure of a first Parisian acquisition following an inheritance and in a context where the market was rather sluggish. I can only thank Olivier Lebé, who guided me for several months to refine my project until the acquisition of a very beautiful apartment in the 19th arrondissement. His ability to listen, his attentive support, his perfect knowledge of the real estate market and the neighborhood allowed me to embark on this first purchase with complete peace of mind. Excellent service is an investment, but peace of mind is well worth the price!
A big thank you to Patrick for his professionalism and efficiency! Thanks to his ability to listen and his perfect knowledge of the market, he was able to find the ideal property. Tailor-made support, sound advice and exemplary responsiveness. I highly recommend his services!
