We asked Trevor Leggett, Chairman of Leggett Immobilier, to tell us what is happening with the property market in our region. What he had to say was enlightening:
Let’s take a look at the seven departments covered by The Local Buzz and break it down into (i) overall market conditions and prices and (ii) demand from international buyers.
Firstly, just a quick word on the general economy and the national market. The Notaires de France tell us that there were 965,000 sales in the last 12 months and it’s clear that the market is the healthiest it has been for years. Low interest rates and tax incentives sit on top of a market that had been in the doldrums since the Crise Financiere hit in 2008 – the French obviously feel that now is the time to buy and house prices are rising nationally.
Of course, national figures should be taken with a pinch of salt. You can’t reasonably compare an apartment in central Paris to a country house in rural Dordogne. So, let’s look at the departments individually (the prices below are taken from SeLoger research).
The average property price in Bordeaux is 3,822 €/m2 (3,139 €/m2 in 2017) and the demand seems to be insatiable. Properties in the city centre are snapped up as soon as they come on the market and finding student accommodation is one of the most difficult jobs on the planet. The Gironde accounts for 15% of all international buyers in Aquitaine.
Lot et Garonne (47)
Agen, the capital, has an average property price of 1,298 €/m2 (1,236 €/m2) so has seen a slight increase in price over the last 12 months. The department accounts for 15% of all international buyers in the region, many attracted by the strategic location midway between the two powerhouses of Bordeaux and Toulouse.
This department is still the mainstay of British TV shows about life in France. The average property price in Perigueux is 1,485 €/m2 (1,419 €/m2) with prices having risen slightly in the last year. Unsurprisingly, the Dordogne accounts for 45% of all sales to international buyers in the region, with those from the UK and Belgium leading the way.
Interestingly, according to SeLoger, Auch is one of the few places that has seen a drop in price over the last 12 months, with an average price of 1,367 €/m2 (1,518 €/m2). Again, please don’t read too much into this as it’s a huge department. Indeed the Gers is the second most popular department in the Midi Pyrenees for overseas buyers.
Tarn et Garonne (82)
Prices in Montauban have increased in the last year, with an average of 1,561 €/m2 (1,473 €/m2). This beautiful department is also popular with international buyers accounting for 11% of all sales in the region.
Haute Garonne (31)
Toulouse is one of the most vibrant and successful cities in France. It is similar to Bordeaux in that prices have soared and demand outstrips supply. The average price is 2,864 €/m2 (2,524 €/m2) and the department accounts for 13% of overseas buyers in the region.
Cahors, like Auch, has bucked the trend and seen falling prices over the last 12 months, 1,429 €/m2 (1,627 €/m2). We predict that this will change and that both the Lot and Gers will see prices rise in 2018. This department is particularly popular with overseas buyers and accounts for nearly a quarter of all sales in the region.
When looking at the market for international buyers it’s interesting that sales have gone up in both Aquitaine (by a whopping 12%) and Midi Pyrenees (by 8%). These are far higher than the national figure and are a clear indicator that the climate, landscape and culture of SW France are second to none.
The future is rosy too – Leggett has experienced record sales in the region and our call centre team have never been busier, with 13,000 enquiries coming in last month alone. www.leggettfrance.com
You will find a comprehensive list of estate agents as well as property rental and management companies in Gironde, Dordogne, Lot et Garonne, Lot, Gers, Tarn et Garonne and north Haute Garonne in our business directory listings under Property.
First published in the September/October 2018 issue of The Local Buzz