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With the credit crunch biting hard in the UK and French estate agents (particularly those working with British and Irish clients) experiencing a slow down in sales enquiries, we felt it was time to test the water and find out how things really are.
So we spoke to the major players in the Languedoc property market and asked them for their views on the current situation, what they feel prospective buyers should be aware of, and examples of Languedoc homes that might be of interest to house hunters in the south of France.
We’ve divided the information up into two sections. In Part 1, you can read the thoughts of agents and consultants marketing Languedoc property, including Neil Parkinson (James Properties France), Lisa Le Berre (Carca Sun Immobilier), and Paddy Gibbins (Artaxa Immo/Buy-to-Let Montpellier).
In Part 2, you will find comment from agents selling some interesting new build developments; such as Domaine de Lavagnac (on the outskirts of the village of Montagnac), and an imposing marina development at Aigues-Mortes.
Lisa Le Berre, Carca Sun (www.carca-sun-immobilier.com)
“We’re of the opinion that the current state of the Languedoc property market, and the French real estate market as a whole, is a correction of a previously over-priced market. The market value of properties is starting to correlate more with their individual value, and if this means not making as much profit on a sale for vendors, it does however lead to buyers currently getting more value for their money!
Despite some vendors trying to stick to their original selling price, they have however recently become more open to negotiation…the current state of affairs does make for an undeniable argument in favour of any reasonable offers placed on a property.
To go back to basics, at present the supply by far outweighs the demand, and although the property market in France is not as far gone as the US or the UK, at Carca Sun we feel that as of late, it’s definitely a buyers’ market.
As an example of the ‘sign of the times’: a beautiful six-bed maison de maître with original features typical of this style of architecture, an independent apartment and courtyard in the centre of Carcassonne has come down to the same asking price as when the owners purchased four years ago, i.e. €342,000.
Similarly, a four-bed bed 1930’s construction in a sought-after residential area of Carcassonne, with private garden, views onto Carcassonne’s medieval city and an independent two-bedroom apartment ideal for short- or long-term rental is currently on the market at €330,000.”
Paddy Gibbins, Artaxa Immo (www.artaxa.com)
“Despite massive slow-down global in the property market, the Languedoc market seems to be holding up pretty well. We are seeing some stagnation in remote rural locations, with properties sticking on the market longer than previously, and new build has slowed a lot.
The coastal plain of Pézenas and the south is still sought after, and Montpellier property is turning over at a respectable rate. The yo-yo of currency markets is creating a bit of uncertainty with two clear camps emerging - "buy now" as the euro will strengthen further, versus "wait to see" if the euro weakens next year.
Within our investment operations we are seeing an increase of cash buyers for apartments in Montpellier priced at less than €100,000, with stong rental yields, from both the resident and non-resident market. We read the trend as a gentle shift from buying established financial instruments (annuities, government bonds etc) for income creation in retirement.
There are some genuinely good opportunities at the moment, even if this sector is more complex, as the properties are yield-lead, and often come with sitting tenants. However we are finding properties for clients today with completely transparent and demonstrable net yields of 7 per cent in year one, which is very strong.”
Neil Parkinson, James Properties France (www.jamespropertiesfrance.com)
“The current Languedoc-Roussillon property market is slow, but we are not seeing a downward spiraling of prices common to other regions. House hunters are less common but still looking for the property that is right for them.
Some property purchasers are using assets in the bank, others are looking for credit. In the latter case, the French financial market, while seemingly more robust than that in the UK, is not lending on terms close to those of previous years. Besides impacting individuals, this is proving prohibitive for developers attempting to launch new projects.
It is possible to find homes that offer outstanding value for money; an example is an exemplary renovations, set in a secluded area of Languedoc’s southern Cévennes, with a rustic look, bright and airy interior, streams either side and a swimming pool to boot, for the asking price of €599,000.
Another property, close to the Languedoc former mining town of Alès, would make excellent financial sense to a small-scale property developer: a large villa of high quality standing in grounds on which three new houses can be built has a price tag of €670,000.”
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