Demand for second homes in France surges post-lockdown
Whether the deadline is Brexit, or fear of another Covid-19 spike, buyers are moving, and moving fast.
3 minutes to read
Since 11 May, when the French property market reopened for business, our 30+ strong office network in France have reported their busiest weeks for more than a decade.
France is still the most visited country in the world and for many high-net-worth individuals the ultimate second home destination, yet it’s not, so far, international buyers behind the surge in activity but French citizens, along with those from neighbouring countries.
According to Fredrik Lilloe of Knight Frank’s French Riviera team it’s a four-phased recovery: “First came the Monegasques looking for a more spacious retreat just a short hop across the border from their small 0.78 square mile enclave. Next came the Parisians and other French metropolitan buyers, who, having endured several weeks of confinement saw the appeal of their own slice of real estate on the French Riviera. Neighbouring Europeans looking for a getaway within easy reach by road or rail represented the third wave and finally, the British are now set to return from early July when the new air bridge is expected to open up between France and the UK.”
“The challenge now is finding a place to rent from which you can visit your shortlist of properties,” according to Jack Harris from our international sales team. “Flights and holiday rentals have been snapped up in the last few weeks with buyers struggling to plan their trip over to France to progress their search.”
In the South of France, rental demand was strong both during and after lockdown with northern Europeans, particularly Scandinavians, opting to relocate for the summer months to a villa on the coast and work from home until September.
In Paris, Alison Ashby, Director of Knight Frank’s partners Junot Fine Properties has also seen strong activity which she attributes to several factors, "Firstly, there are those seeking a change of lifestyle post-lockdown, there are others wanting to benefit from record market prices in anticipation of a potential economic slowdown, and for many international investors, there is the appeal of Paris property as a refuge during turbulent times."
The story is much the same in Provence, here enquiries from 1 January until the end of May were up 26% in 2020 compared to the same period in 2019 according to Rudi Janssen, Head of Janssens Immobilier Knight Frank, “French buyers now represent 60% of our enquiries, up from 50% last year but are slowly being joined by British, German, Dutch and Swiss buyers.”
The message from Mark Harvey, Head of International Sales, is act now, not necessarily because of the risk of a second spike but because inventory levels are shrinking and lending rules tightening. The key question is how long this post-lockdown honeymoon period will last, the expectation is it will continue through July and into August with little likelihood of the usual seasonal summer lull, but Autumn’s prospects will depend on travel rules, consumer behaviour, the resilience of the labour market and epidemiological advances.
And then there’s Brexit, what will it mean for British buyers in France? The short answer is it’s unclear. The finer detail is still being ironed out in terms of taxes, pensions, healthcare and the freedom of movement, this is motivating some to purchase now enabling them to relocate to France before 31 December 2020 when a visa will be required.
To discuss any property requirements in France you might have or broader market conditions do get in touch with Mark Harvey or Jack Harris.
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