Should you buy and sell real estate in Paris now? Or is it better to wait until the Covid-19 pandemic has eased?
No one has a crystal ball to predict the future, or to know how the market will change in the coming months. However, recent reports and the opening up of property visits once again are all good indicators.
We examine the latest information as our second lockdown prepares to ease to a curfew on December 15th. Restrictions may be lifted entirely by January 20, 2021.
Property visits and the current lockdown
The second lockdown this year, in place since October 29th, has not affected the Paris real estate market as strongly as the first.
Unlike the earlier lockdown, there are many permitted activities to aid buying and selling. This includes estimates, diagnostics, transactions, and closings.
But of course, no one has been able to visit properties in person, which remains the biggest challenge. Virtual visits using photos and video calls remain a great way for buyers to view properties.
There were even suggestions for ‘click and collect’ visits. This requires the prospective buyer to collect the keys, and view the property on their own, guided by the agent via a videocall. The techniques of modern buying and selling are changing fast.
Thankfully, the recent address from President Macron revealed good news. Real estate agents are now free to resume property visits as of November 28th.
We will follow strict rules, with no more than two people per visit, and a maximum of three visits per day for the same property. Of course, strict hygiene guidelines will also be in place.
The resuming of safe visits in person will give a kick start to the real estate market over the coming weeks.
Property prices and the notaries’ report
The latest report from the notaries gives good news regarding the current real estate market in Paris.
Published in October, the notaries indicate the number of transactions remains high. It seems the first wave of Covid-19 did not hugely affect prices in the first and second quarters of 2020.
Better still, prices continue to increase. In the second quarter of 2020, apartments were selling for 2.2% more than in the previous quarter, an increase of 8% over the previous year.
Of course, we are still very much in a pandemic, and the notaries suggest caution. The overall impact on the world’s economy is not known. But the Paris property market remains resilient, despite the current challenges.
Another real estate resource has indicated that 85% of buyers are continuing to research properties for sale, even during the current lockdown. This is far higher than those in the first wave, which suggested only 48% of prospective buyers were actively searching.
It shows greater confidence in the market and is another positive indicator.
So, should you buy and sell real estate in Paris now?
So all things considered, should you buy and sell real estate in Paris at the moment?
This may become a time of opportunity for buyers. If the market bounces back as it did after the first lockdown, there could be many properties to choose from. One example of a property currently listed with 56Paris is this studio in the heart of the sought after district of Saint-Thomas d'Aquin.
For sellers, our advice would be to stay put and adjust the marketing of your property once the trends begin to emerge. Of course, for those looking to sell rapidly, full-on marketing is now possible and is the better choice.
Of course it is a personal choice, but whatever your next steps, we are here to help. Whether you are planning to buy or sell, please don’t hesitate to contact us, and we will be happy to assist.