The explosion of the real estate market in the Basque Country
In a very dynamic market, real estate in the Basque Country benefits from ever-low interest rates, as well as a real attractiveness of the quality of life on the Basque Coast.
The real estate market on the Basque
Coast is in a very favourable period for sellers. Barnes Côte Basque
has never had so many mandates, thanks to its large team on these 2
offices in Biarritz and Saint Jean de Luz and prices that promise
very interesting prospects to sellers. Decreasing your IFI (Real
Estate Wealth Tax) is an additional motivation.
The Basque Coast is on the rise, and
this benefits both sellers and buyers who discover a rare and quieter
quality of life around Biarritz and Saint Jean de Luz than in the
As a sign of real dynamism, it is
interesting to note that sales times are constantly shortening, which
in turn creates a certain rarity in the offer... with the consequence
of a real increase in prices. This allows sellers to "get out of
the woods", motivated by the vitality of the market and rising
prices. The interest in offering for sale, which responds to the
famous "3D rule" (divorce, moving and death) is amplified
by a windfall effect, with little incentive to delay the offer to
sell in order to wait for better days... in which we are. New real
estate, which is a true indicator of the real estate market, has seen
an average price increase of 22% over the last 12 months in Biarritz.
An increase three times higher than the French average.
At the same time, buyers understand
that they must seize opportunities when they arise, without wanting
to wait for the five-legged sheep, or hope for a consequent
negotiation... Under penalty of seeing the object of their desire
pass under their nose. More and more numerous, the vast majority of
buyers know the market and generally decide more quickly,
anticipating a future price increase. Driven by an equally dynamic
real estate market in major cities, many owners with an acquisition
project on the Basque coast sell their main residence (especially in
Paris or the Paris region) with a high added value, increasing their
budgets consequently for their acquisition projects, especially on
the Basque coast.
Historically low interest rates
combined with rising inflation have made it possible to have negative
real interest rates, making credit packages particularly attractive.
Tax measures make it possible to reduce
the impact of their acquisition on their IFI, in particular by
renting their property as an LMP (professional furnished lessor), or
with a loan in fine.
All these factors explain a significant
increase in the number of prestigious sales in 2018 (+30% of sales
above 1ME), with the added bonus of a "glass ceiling" that
has been pushed back in the face of the rise in the very high-end
real estate market, to reach several record sales at over 5ME.
The upcoming G7 at the end of August 2019 will provide a global perspective on Biarritz and the Basque Coast, and should help to sustain the current trend and bring our region additional notoriety. (If it were still necessary!)