Deconfinement: what impact on real estate on the Côte Vermeille?

In Collioure, Banyuls-sur-Mer or even Argelès-Plage, sellers and buyers have found their way back to agencies since the end of the containment measures. However, the health crisis linked to the coronavirus obviously leaves traces. What has been and what will be the impact of Covid-19 on the Côte Vermeille real estate ?

Covid-19 and Côte Vermeille real estate: a sudden stop

As elsewhere in France, the various municipalities of the Pyrénées-Atlantiques and the seaside resorts of the Côte Vermeille, on the coastal strip south of Perpignan, experienced a period of total population containment between March 17 and May 11, 2020. These exceptional measures are associated with the closure of all businesses and establishments deemed non-essential, including real estate agencies. Difficult, in fact, to discover an exceptional property or to sign a sales agreement without a physical meeting between the main stakeholders! Due to the specific conditions linked to the coronavirus epidemic, the Côte Vermeille real estate market did not experience any transactions during the confinement period, then a gradual recovery from the second half of May.

Box: A blow to the vacation rental market

After the complete cessation of activity during confinement, the landlords of the Côte Vermeille specializing in seasonal rentals suffered from the famous 100 km rule, which excluded a large part of the usual clientele (including the inhabitants of Montpellier or Toulouse ). Hoteliers, as far as they are concerned, noted in May a historically low occupancy rate of 15 to 20%. *

What foreseeable price development?

During the Covid-19 crisis, real estate on the Côte Vermeille experienced a temporary standstill. However, its fundamentals have not changed particularly, and the agencies have seen projects postpone rather than their outright cancellation. Various professionals in the sector, such as in Canet-en-Roussillon *, believe that prices will not change in the coming months and before the end of 2020. Seaside resorts such as Argelès-sur-Mer and Banyuls-sur-Mer are still very attractive to a wide range of summer visitors or retirees wishing to relocate to the Mediterranean coast.

Box: A real estate market that remains in balance

In July 2020, the real estate tension index (ITI), which corresponds to the ratio between the number of active buyers and active sellers, is assessed by the MeilleurAgents broker at -4% for the Pyrénées-Atlantiques. This means that there are 4% fewer buyers than the goods for sale, a market almost in equilibrium and which announces a stabilization of prices. **

Soon a rush for second homes?

The period of confinement linked to Covid-19 was also that of regret for many urbanites, who suffered from not having more spacious accommodation with a green area to brighten up their too long days. Since the relaxation of health measures and the reopening of agencies, the new craze for individual housing is noticeable at the national level. From the Albères massif to Port-Vendres, real estate on the Côte Vermeille should directly benefit from this unexpected post-Covid effect, and attract a new wave of wealthy buyers who will not be discouraged by the high valuations current. Remember that a seaside resort like Banyuls-sur-Mer already has nearly 50% of second homes, and that this proportion rises to over 60% for Collioure! The health crisis linked to Covid-19 has not resulted in any particularly harmful consequences for real estate on the Côte Vermeille, apart from an unforeseen delay in the projects of many buyers. The latter should appear more numerous than ever at the doors of the branches in the coming period. Sources: * https://france3-regions.francetvinfo.fr/occitanie/pyrenees-orientales-cri-alarme-professionnels-du-tourisme-elargir-urgence-limitation-100-km-1832278.html ** https://www.meilleursagents.com/prix-immobilier/collioure-66190/ https://edito.seloger.com/actualites/villes/prix-immobilier-canet-roussillon-devraient-se-maintenir-interview-37849.html