The French Property Market & What to Expect in 2021

What does 2021 have in store for the French property market?

This is an interesting question and one that many Francophiles have been asking themselves lately, particularly anyone interested in purchasing property or moving to France in the near future or even in the longer term. I asked Joanna Leggett, Marketing Director at Leggett Immobilier, the leading international estate agency in France, what her thoughts were on this.

Here's what Joanna had to say on what's in store for the French property market in 2021 and what international buyers are looking for, together with some amazing properties that are currently listed for sale. So whether you're dreaming of a sweet cottage in Brittany, a luxury apartment on the Cote d'Azur or a chateau in the south, 2021 just might be your year for purchasing that dream French property ...

Let me start with the huge caveat that I'm writing this at the same time as President Macron is warning that he hasn't ruled out a third national lockdown. I'm working on the assumption that the national (indeed, global) vaccine roll-out will prove to be successful and that we slowly return to normality.

What will be fascinating to see, is what "normal" is.  One thing we can be sure of is that the underlying demand for property in France remains remarkably strong. Let's take a quick look at what happened this year:

2020 - A year that showed the strength and resilience of the French property market

At the start of the year the French property market had been flying. Sales were at record numbers, whether for a country estate in SW France, an apartment in prime central Paris or a villa in the Alps or PACA.

Then, in mid-March, the country went into lockdown and sales ground to a halt. Significantly though, online interest jumped dramatically. The Leggett websites saw visitor numbers soar and our sales support team started building a database of both domestic and overseas buyers who were keen to visit as soon as lockdown finished.

Confinement was lifted by mid-May and the offers came flooding in immediately - July and August were record years for our agency with demand driven by French buyers and topped up by those from the UK, keen to move before Brexit.

Leggett is not alone, agencies across the country reported a jump in sales.  The Axel Springer Group (owner of a portfolio of leading French portals) predicts that overall we will see 918,000 sales across France in 2020, a remarkable number considering the estimated 180,000 sales lost during lockdown.

The only clouds on what seems to be an incredibly sunny horizon, are a tightening of lending criteria being introduced by increasingly nervous banks and the forecast that unemployment could well rise to 12% by 2021.  Neither of these particularly affect you if you are reading this in Sydney, New York, Dubai or London though.

So, what will change in 2021?

"Investors see lasting life changes after Covid-19" was the headline to a research paper published by UBS this summer.  The report, issued by UBS Global Wealth Management, helps us understand how the needs of buyers have shifted dramatically and gives an insight as to what is in store for the French property market in 2021. Three quarters of those polled said that they anticipate permanent lifestyle shifts and, of course, property is central to how this change will be implemented.

Let's take a look at three of the main findings:

1.  Seven in ten will reduce travel and trips to the office

Leggett were taking around 23,000 enquiries every month over summer, from both domestic and international buyers. It was noticeable that, no matter which country the enquiry came from, an increasing number of clients were looking for properties with plenty of outside space and also with the ability to work from home.

This means a separate home office and excellent broadband connection. France has a dedicated broadband plan France Tres Haut Debit, where the Government has committed to providing fast (minimum 30mb) broadband for all by 2022 and fibre optic by 2025. 

Research from BNP Paribas, undertaken this summer, also confirms that buyers are now placing greater importance on both better digital connection and a dedicated room for work. With home working being recommended by many Governments this is a trend that is likely to grow.

2.  Half intend to move closer to family

Travel restrictions and "lockdown" brought home how important it is to be close to family. For many buyers from cities in Australia, North America or the Far East, this means looking at country estates with more than one property in the grounds.

What better way to ensure the safety of your particular family "bubble" than to trade smaller urban properties for a rural estate, with plenty of room and little exposure to potential threats. Country property in France is such exceptionally good value.

Once again, the BNP Paribas research backs up the UBS  findings - they tell us that 81% of people looking to move, now attach more importance to outdoor space. As proof, Leggett enquiries for rural property has increased exponentially since the start of the pandemic.

3.  Forty-six percent may forsake cities for less populated areas

That's quite a population shift, even if the majority don't actually go through with it. We are still seeing high demand in Paris, Nice, Bordeaux and other cities but apartments with a balcony or some kind of outside space are fetching a premium.