On March 17th, French authorities took the unprecedented decision to almost shutdown France and confine people in their homes, as the only way of dealing with the covid 19 epidemic,.
Like in many countries this is a particularly difficult time, with the most fragile and elderly particularly exposed. We hope that the authorities quickly apply the best policies to control the epidemic !.
What is impact on the French property market ?
The immediate impact is to freeze the property market, as all estate agents have closed even if they remain available by phone or email.
So all house visits and sales are on hold and are delayed until after the end of confinement.
This week confinement has been extended to the 15th of April, so 4 weeks in total, and if the number of victims does not start to drop, it will likely be extended into May.
This 2 months lockdown will clearly reduce the number of transactions this year and probably over the rest of the year too due to the impact on personal and public finances.
If we check what happened in the last Financial crisis in 2008, property prices in the South of France stopped rising as you can see in the graph below.
Like in many countries this is a particularly difficult time, with the most fragile and elderly particularly exposed. We hope that the authorities quickly apply the best policies to control the epidemic !.
What is impact on the French property market ?
The immediate impact is to freeze the property market, as all estate agents have closed even if they remain available by phone or email.
So all house visits and sales are on hold and are delayed until after the end of confinement.
This week confinement has been extended to the 15th of April, so 4 weeks in total, and if the number of victims does not start to drop, it will likely be extended into May.
This 2 months lockdown will clearly reduce the number of transactions this year and probably over the rest of the year too due to the impact on personal and public finances.
If we check what happened in the last Financial crisis in 2008, property prices in the South of France stopped rising as you can see in the graph below.
The French social system in 2008 tended to cushion the effect of the economic downturn.
This time, combined with the support by the Central European bank, a more solid banking system and lessons learnt from the previous crisis should also help contain the downturn.
Also the underlying demographic trend in the South of France is a steady increase of people moving to the area and settle in the sun, so in the medium term prices should remain stable.
There may be more amateurs considering homeworking from a villa in the South of France following this period where companies have been obliged to accept homeworking !
Confinement was far easier for lucky homeworkers who could see the effect of springtime in their gardens compared to those confined in small city apartments.
Whatever your real estate project is, we will pleased to advise and will respond to you and answer any questions you may have if you are considering moving to France. During this period we can still run a property search and in certain circumstances also arrange virtual visits. Contact us so we can help you be the first on the spot when the market starts again.
This time, combined with the support by the Central European bank, a more solid banking system and lessons learnt from the previous crisis should also help contain the downturn.
Also the underlying demographic trend in the South of France is a steady increase of people moving to the area and settle in the sun, so in the medium term prices should remain stable.
There may be more amateurs considering homeworking from a villa in the South of France following this period where companies have been obliged to accept homeworking !
Confinement was far easier for lucky homeworkers who could see the effect of springtime in their gardens compared to those confined in small city apartments.
Whatever your real estate project is, we will pleased to advise and will respond to you and answer any questions you may have if you are considering moving to France. During this period we can still run a property search and in certain circumstances also arrange virtual visits. Contact us so we can help you be the first on the spot when the market starts again.
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