The real estate market in 2018 in the Alpes-Maritimes is strengthening, making way for a very good year. But will the Alpes-Maritimes still stand out as an exception in 2019?
With a growth of +7% in one year, the volume of sales (4,882) reached a record level in 2018, as you have to go back to 1999 to find such a score (4,663).
At the same time, new supply increased dramatically, with a leap of +29%, and the stock of housing rose to 3,847 units by the end of the year, reflecting a 34% increase, while the sales period stabilized at 9 months.
These results are linked to the release of major operations on the market from competitions related to development projects, generating a significant number of bulk sales, explains Jean-Marie Ebel, President of the Housing Real Estate Observatory.
In this highly favorable context, prices recorded a 4% rise, and are at a very high level (more than €5,600/m2) compared to the purchasing capacity of workers, with prices driven by a significant increase in production and sales above €5,000/m2.
The urban communities of the department generally experienced similar results, except for Sophia-Antipolis, where the real estate market saw a significant decline compared to 2017.
Existing Market:
The resale market is also experiencing a revival of activity. Indeed, there is a +5% increase in transactions in existing properties within one year, reaching a level of 13,279 units not seen since 2004!
Prices remain relatively stable, at nearly €4,000/m2. In fact, nearly 60% of transactions are below €4,000/m2.
2019 Outlook:
The market dynamics are clearly supported by low credit rates. While professionals can only welcome such results, they look to the future with some concerns.
Indeed, the high level of new property prices, the potential rise in rates, the economic context, and the prospect of the 2020 municipal elections will certainly impact the level of supply and household behavior, details Jean-Marie Ebel, President of the Housing Real Estate Observatory.
Caution is advised as the activity volumes for the 4th quarter, both for sales and listings, are already slowing down.
