Property sales in Provence up 28% in the first half of 2022
One of the busiest markets during the pandemic, the Provençal dream continues to appeal to a broad mix of buyers.
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'Frenetic' best describes the Provence prime residential market. Enquiries in 2021 were up 50% year-on-year and in the first four months of 2022 the team witnessed a further 10% rise.
Buyers are highly motivated. In 2021, it took 10 to 12 viewings on average before a sale was agreed, in 2022 this figure has dropped to five or six viewings. The lack of stock means buyers are making concessions, the days of an exhaustive tick list are gone.
The number of properties for sale is down 65% across the region compared to the start of the Covid-19 crisis and demand is around four times stronger than current stock levels.
The average price increased 8% in 2021 and by a further 8% in the first half of 2022. Sales agreed are up 28% in the first half of 2022 compared to the same period a year earlier.
Demand is coming from both French and international buyers and the proportion of international buyers is increasing post-Covid-19. In 2021, 47% of Knight Frank’s buyers in the region were from overseas, in 2022 this figure has risen to 59%. Belgian, British, Swiss and increasingly US nationals represent the bulk of international buyers in the region.
However, prospective buyers from abroad are often left with a rapidly shrinking pool of properties to view if they are unable to arrange their visit immediately.
There is less negotiation on price than before the pandemic. Due to the competition in the market buyers are aware they need to offer close to, or at the asking price.
The region offers relative value compared to the Cote d’Azur with the €1 million to €2.5 million price bracket the most active. Around 60% of buyers need to take out mortgage financing for liquidity purposes and other fiscal advantages.
There was good news for British second homeowners in France earlier this year. A ruling by the European and French courts means those with homes in France will pay a 7.5% rather than the 17.2% social charge (prélèvements sociaux) when selling or renting their property.
Furthermore, those that have erroneously incurred this charge since the UK left the EU on 1 January 2021 can apply for refund from the French tax authorities.