The property market is showing signs of recovery after two years of decline, with rural houses again leading the way. However, renovation projects, once sought after, are reported to be fading in popularity.
Overall prices – all properties combined – rose by 0.1% during the month of March. The sector seeing the biggest rise was rural houses, which rose 0.5%, and 1.1% over the first quarter, data from estate agent websites SeLoger and Meilleurs Agents shows.
Rural properties languished for a decade after the property crisis of 2008, with prices often down 25%, before a flurry of post-Covid activity pushed some areas above the 2008 peak, followed by a new slowdown in 2022-24.
Simon Kerridge, founder of Languedoc Property Finders, told The Connexion: “In the first two months of this year, we had much better results than we typically expect for the season.”
Upward sales curve
Carol Ann Wheeler, founder of Wheeler Property in the south-west, also predicted a good year. “Traditionally, the busy time is between April and October,” she said. “In the first quarter of this year, we have done almost half the sales that we did in the whole of last year, so it’s very much on an upward curve for us.”
Last year, property prices rose across France by 0.4%, reports SeLoger, due largely to rural properties, which increased by 2.1%, and these remain highly sought-after, Ms Wheeler said.
“There has always been a big demand for these properties. Some will be harder to sell than others, but it depends on location: everybody wants the lovely view, the stone house.”
However, she said renovation projects are now “hard to sell” due to a rise in building costs. She recommends sellers tackle big structural jobs, such as the roof, but leave things such as new kitchens to the buyers, as “they tend to want their own style”.
While the year has started well, Mr Kerridge noted that the wider global context could still affect the recovery, a view shared by the Orpi estate agents’ network, which said the industry should “remain cautious in the face of economic and geopolitical uncertainties”.
Asked what sellers should keep in mind this year, Mr Kerridge said he has seen in the Languedoc a tendency towards sellers over-valuing properties. “Selling property is all about price. If you offer someone a good product, if it is sensible and realistic based on today’s market, people will buy.”
'Find a good agent'
Sellers should not think of themselves as experts and should find an estate agent they trust, he said.
“They should resist when an estate agent says ‘How much do you want for your house?’ It is better to reply ‘Tell me what you think you can sell my house for in today’s market’.”
He said a good agent should educate sellers on the market and back up their opinion with evidence. Sellers should read reviews of agents online and sound out three or four, he recommends.
“What’s your experience? What can you do for me? Why should I choose to work with you? This is what sellers should be asking,” he said.
Sellers should get their property in the best possible condition before putting it on the market, Ms Wheeler said. “I don’t mean spend a lot of money, but make sure the garden is tidy, things are clean and tidy. Present the property in the best light.”
As for potential buyers, while global uncertainty might cause some to wait, others see property as a solid investment. Mr Kerridge said: “If the financial markets are in disarray, then it is entirely possible people will choose to put their money into bricks and mortar instead because property markets fluctuate, but not at the same rate as financial markets.”
Advice for foreign buyers in France
French banks have been cautious when granting mortgage offers over the past few years, but the buying process is smoother for cash buyers.
Ms Wheeler said: “Most of our buyers coming from abroad don’t need finance, so it speeds up the process. There is less risk in accepting an offer from a buyer because there is less that can go wrong.”
She advises buyers from abroad to research areas they are thinking of moving to so they avoid a common scenario where people sell up and buy a different property in a couple of years’ time because the original purchase was not well thought through.
Mr Kerridge said: “When you are looking at the international market, there are so many factors that come into play. Probably the most important is not ‘will prices go up?’ or ‘will prices go down?’ but is it the right time for the buyer based on their own circumstances? The best advice I can give is to buy because it feels right.”
One issue that will affect international buyers is the exchange rate. “Plan to change your currency when it is at a high,” Ms Wheeler said.
A likely trend for 2025 is a continued rise in British buyers, which Ms Wheeler attributes to post-Brexit uncertainty settling down.
Despite the positive signs for 2025, is there anyone who should wait before they buy?
“If you were a first-time buyer and needed a mortgage, then maybe hold off. The cost of borrowing looks as though it might come down further – but it might not,” said Mr Kerridge, who urges buyers to “maintain perspective”.
“A few years ago, we had mortgage rates at just under 1%. That was exceptional and it would be a mistake for buyers to wait for that to happen again because it probably will not.”
