On the Basque Coast, property prices are making a soft landing. High prices are still the norm, for several reasons
Exceptional properties unaffected by the vagaries of credit … in fact, properties worth over 2 / 3 million are often purchased without going to the bank but through the sale of other assets … so for these unique flawless properties with views and garden … all is well … on the other hand, the slightest defect, a more banal view, and you’re relegated to the lower echelons of the market. in the 2nd Division and with longer transactions … It should also be said that while sales are lengthening, this does not mean that prices are falling… the rebalancing is not yet here, and the peaks of 2021 and 22 are still in sight…
On the other hand, due to the extension for 2nd category goods. ( often exceptional property ) but with a flaw or at least without all the assets, agencies are noticing rising inventories, a sign that sales are slowing down.
- The current economic climate, with falling unemployment and a steady stock market, but real estate interest rates rising from 1% to 4% in 2 years, combined with the reluctance of banks and high interest rates, means that future buyers with substantial incomes are currently unable to buy. High prices and “high” interest rates are making it more difficult and more expensive for buyers to obtain credit, and ultimately to buy less M2.
- And let’s not forget the increase in insurance costs due to the law since September 2022 obliging insurers to accept applications previously refused, such as fragile small borrowers or applications from people who have had a long illness for assets of less than 200,000 euros. This new risk taken on by the insurers also inflates the invoice and therefore the cost of the loan … yet nobody talks about it … despite the consequences.
Nevertheless, in Biarritz, the return of foreign customers, led by North America, is sustaining the market, while Nordic countries, the Japanese and some Gulf countries are also keeping up the strong demand for exceptional properties.
Another area where the Basque Country and both sides of the border are doing well is in “cool” tourism, where the high temperatures, approaching 40° every day in many parts of Europe, where traditionally high-end tourism has gone to Marbella and other Mediterranean beaches, are now turning to our region. So requests for second homes also become a new opportunity. The same is true of San Sebastian, where tourists from Andalusia and Madrid are taking refuge on our shores, and with them new searches for top-quality holiday homes and apartments.
https://immobilier.lefigaro.fr/prix-immobilier/biarritz/ville-64122
