Mortgage Credit: Punishing Low Income Families -

Real estate prices on the French coast are on the rise –

In coastal areas of France, housing prices have skyrocketed since the Covid-19 pandemic. The entire territory of the city is affected by this trend. However, this is more evident in a few areas. An average of 30% has been observed, for example, in Normandy since the beginning of the health crisis.

In 2020 and 2021, property prices have skyrocketed along the French coasts. This jump is observed mainly in three regions: Normandy, Brittany and Neuquitten. It stems from the constant increase in the number of buyers in all seaside resorts.

Costs entered a gradual trend prior to the coronavirus pandemic, the National Real Estate Association (FNAIM) determines. However, the organization notes that it has increased by 24.2% in the past two years. Its president, Jean-Marc Turillion, comments that this increase increased significantly from May 2020. In other words, cracking the code, families collectively shifted toward accommodation at the end of first confinement.

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Buyers are urged to pay attention

The president of FNAIM explains that this type of accommodation can provide the French with a respite of tranquility. He adds that when we look at the Occitan region, we find that commodity prices have risen by:

  • 20% on a semi-annual basis after the first birth;
  • 3.8% on a semi-annual basis prior to this booking.

Jean-Marc Turillon continues to say that an apartment in La Grande-Motte sold for 320,000 euros before the health crisis:

[…] Today, it is worth nearly 400,000 euros.

Jean-Marc Turillon

In Deauville, for example, the increase in home prices has also been very strong.

For this reason, families who are considering buying a home in the municipality are advised to take the necessary precautions.

This is especially so when negotiating a file Mortgage.

The couple who lives there are happy to buy their property in time. The woman says:

I think that in a couple of years our house already had to take … more than 30%, we bought it for 258,000, in my opinion, today it costs 310,000 euros.

Between 2020 and 2022, the increase in value is about 50,000 euros. Price per square meter has developed by +30% on average since 2019 in Normandy, supported by FNAIM.

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The supply of goods in the market is insufficient

Also in Deauville, a retired couple consulted home prices posted on the front of a local real estate agency. The wife notices the high cost of houses for her husband, and he answers that they are as expensive as in Paris.

The couple, who planned to settle in Normandy in the future, will have to change their project. Real estate experts explain that the problem lies mainly in the relationship between supply and demand. Many French people want to live in the area. However, it turns out that there are very few homes for sale. What causes price expansion. The director of Citya Agency in Deauville, Eric Lehope, says:

We have an example of an apartment seen on the racetrack where the selling price was €7900 per square metre, where in 2019 we might have had difficulty selling apartments around €5000. […]

Eric Lehope

Thus, the property has benefited from a capital gain of nearly 50%. Concludes.

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