The real estate market in the region is very segmented. The 2009 FNAIM report explains this to us. Certain real estate sectors are more affected than others. Retiree housing is a real boon for the Alpes-Maritimes. The allure of the sun remains intact, and this type of market hasn’t truly suffered. On the other hand, the segment that is most lagging is second homes due to the volume of sales and prices. Secondary apartments, however, have been slightly spared.
The volume of resales, on the other hand, experienced a sharp decline between 2008 and 2009. FNAIM prices for resale properties in the Alpes-Maritimes have therefore adapted to the phenomenon. In Nice, the price per square meter stabilized below 4000 euros at the end of the year with a decrease of 7% compared to the previous year.
The slowdown observed in the first quarter due to concerns over the global crisis was caught up in the second quarter with a certain stabilization of market prices.
Even though for the 650 real estate professionals that FNAIM brings together, the year 2009 was not easy (cuts in advertising budgets, agency closures, and staff layoffs).
French Morale on the Rise
The main factor that causes fluctuations in the real estate markets is the morale of the French. Indeed, the current context creates fear among potential buyers. They think that the moment is not very favorable for real estate transactions. However, the perception of certain access conditions is improving. Credit seems more accessible to the French, and rates are more attractive.
Buying in 2010?
Regarding the outlook for 2010, Pierre Laurent, the president of FNAIM, expresses “his optimism.” For him, it is certain, it is the time to buy! The residents of the Alpes-Maritimes should take advantage of all the conditions available. Real estate prices have returned to their 2006 levels, and the demand pressure means they will not decrease next year. Moreover, the credit conditions are the best in almost 10 years. “An unbeatable medium and long-term investment for a serene retirement,” concludes the president of FNAIM Côte d’Azur.
