Stability in Brittany property prices despite drop in transactions - Meilleurtaux.com

The Brittany real estate market continues to show an unusual situation, with stable prices, despite a strong decline in the number of transactions in the second quarter of 2023. How to explain this kind of conjuncture? Does this trend prevail throughout Brittany? Let's find out.

Surprising price resistance

In contrast to regions such as Ile-de-France, where real estate prices are experiencing a decline, Brittany and Loire-Atlantique continue to see stable or even rising prices. According to quarterly reports from the Regional Chamber of Notaries of the Court of Appeal of Rennes, median prices of older apartments rose 5.8% year-over-year in the second quarter of 2023. Prices of older homes jumped 6.8%, while''new buildings showed an increase of 6.4%. These figures refer to median prices, reflecting values in the middle of the distribution of transactions, but not to average prices based on advertisements. Price growth has been observed in all departments in Brittany. For example, the second quarter of 2023 compared to 2022 brought an increase in the median price of older apartments: by 11.5% in Finistère, by 7.6% in Côte d'\'Armor, by 9.9% in Morbihan, by 4.7% in Ile-et-Vilaine and by 1.2% in Loire-Atlantique. This seemingly counterintuitive trend raises questions about the causes.

Market diversity

Bretagne Real Estate In the second quarter of 2023, the number of properties for sale on the market decreased significantly, down 23.4% from 2022, as indicated by the president of the Regional'Anne Fercock-Le-Guin, 'Chamber of Notaries of the Court of Appeal of Rennes. Sellers are facing higher construction costs for new builds and rising interest rates. Despite relatively favorable lending conditions in Brittany compared to the rest of France, the region is experiencing a stronger decline in sales compared to the national average.

The impact of the coast

The Brittany coastline remains a key factor influencing real estate prices. The purchase of secondary homes and the relocation of wealthy families, less dependent on interest rates, continues to support demand and drive up prices, particularly on the coast. However, despite the current stability, it is likely that prices will start to decline in the near future, especially for older apartments and houses in Côte d'\'Armor and Loire-Atlantique, as well as older houses in Ile-et-Vilaine and Morbihan. These projections''Should be viewed with caution as some transactions may not materialize. The real estate market in Brittany remains dynamic and complex, with an evolution that should be closely monitored in the coming months.

Main findings

Despite the strong decline in real estate transactions in the second quarter of 2023 in Brittany and Loire-Atlantique, real estate prices remain stable or even rising. Median prices for older apartments jumped 5.8% year-over-year, a trend seen in all Brittany departments. The decline in sales is due to higher construction costs for new properties and higher interest rates. Nevertheless, the diversity of the market and the influence of the coast contribute to price stability, although there may be''reductions for some objects.