Real Estate: 2018 Set Records. Will the Alpes-Maritimes Still Stand Out in 2019?
A Market in Good Health, as Reflected by New Housing Indicators.
With a growth of +7% in one year, the volume of sales (4,882) reached a record level in 2018, a number not seen since 1999 (4,663). At the same time, the new supply surged significantly, with a leap of +29%, as well as the housing stock, which stood at 3,847 units at the end of the year, marking a 34% increase, with the turnover period stabilizing at 9 months.
2018, New Housing Prices Up by 4%
“These results are linked to the launch of significant projects resulting from competitions related to development projects, generating a significant number of bulk sales,” explains Jean-Marie Ebel, president of the Real Estate Housing Observatory. In this very buoyant context, prices have risen by 4%, and are at a very high level (over €5,600/m²) relative to the acquisition capacity of buyers, with prices driven by a significant increase in production and sales above €5,000/m². “The departmental urban communities experience similar results overall, except for Sophia-Antipolis, where the real estate market saw a clear decline compared to 2017,” he notes.
Existing Market, +5% Growth in Transactions
The resale market is also marked by renewed activity. There is an increase of +5% in existing property transactions over one year, reaching a level of 13,279 units, a peak not seen since 2004! Prices remain relatively stable at nearly €4,000/m². Indeed, almost 60% of transactions are under €4,000/m².
2019 Outlook, Let’s Stay Cautious!
“The market dynamic is clearly supported by low credit rates. While professionals can only applaud such results, they view the future with some concerns,” continues Jean-Marie Ebel. Indeed, the high level of new housing prices, the potential rise in interest rates, the economic context, and the prospect of the 2020 municipal elections will certainly affect the supply level and household behavior.
“Caution is warranted because the activity levels in the 4th quarter, both for sales and listings, are already slowing down,” concludes the president of the Real Estate Housing Observatory.
