There is currently a very noticeable shortage of high-quality houses for sale in southwest France. The agents I work with are tearing their hair out with fewer and fewer good properties on their books to sell and it has been the case for most of this year. But why?
It seems as if there are several factors at play right now.
1. Increased Demand
In recent years, certain parts of France, and particularly southwest France, have grown in popularity among both French and international buyers. The gently rolling hills and beautiful landscape, mild climate, easy access to the Atlantic coast, the Pyrenees and Toulouse and the great quality of life make it highly desirable for families, retirees, and commuters particularly with more hybrid working. As well as a perfect base for second-home owners.
The covid pandemic also accelerated interest in rural properties as people sought more space and tranquillity but with easy access to towns and cities and this surge in demand quickly absorbed much of the available housing stock, especially quality homes in prime locations. In 2021 and 2022, there was a very noticeable trend of people moving out from the major cities to the countryside in France. This was a direct result of their experiences during the covid confinements and this reversal in buying patterns (previously there was a long-term shift away from rural areas to towns and cities) helped soak up the supply of rural homes and village properties as well as slowing long-term declines in population levels in rural areas.
2. Supply Chain Disruptions
The construction and renovation sectors are facing delays due to the global supply chain disruptions caused by the Ukraine war, further limiting the availability of homes. Builders and renovators are finding it difficult to source materials, which has slowed down new construction and renovation projects.
3. Owners Holding On
Many homeowners in southwest France are reluctant to sell due to rising property values in the countryside. If they want to stay in the same area, they know they will struggle to afford anything better, and mortgage rates have increased at the same time. Plus, there are no houses on the market for them to move to, so they are staying put. Additionally, with the region becoming more dynamic year-round, holiday homeowners and retirees are choosing to stay put. This restricts the number of high-quality properties that enter the market. Similarly, land prices for new builds are probably the highest they have ever been, and the cost of construction materials are about 20% above what they used to be prior to Covid and the Ukrainian war.
4. Stronger Environmental Regulations
France has implemented new environmental regulations targeting energy efficiency and sustainable building practices, which means that owners of old properties which don’t meet the new standards are putting off listing their houses for sale until these improvements have been made.
If you are having no luck in finding your perfect house to buy in southwest France, however, don’t despair. With the economy improving, mortgage interest rates coming down and no elections on the horizon for the foreseeable future, all the signs are strong and the elements in place to see a gradual increase in houses coming onto the market. Like most things in France, the property market n’est pas pressé and does not move quickly so be patient and if you need help in finding that elusive French house, please get in touch: nadia@foothillsoffrance.com
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