Wretman Estate is the largest Scandinavian estate agency in France, with 7 offices in the South of France. With 50 team members, Wretman Estate represents buyers and sellers from St-Tropez to the Italian border.
Here below you have the most recent interview with the co-founder of Wretman Estate, Filip Wretman, and Riviera Radio :
Question : So Filip, how has the real estate market been this summer?
Well for Wretman Estate this summer, we’ve noticed that the French market, both local and national, has continued to be dynamic. This has been combined with the return of foreigners since travel restrictions eased. So, it’s been a busy summer for us. To give you an idea, we had 42 accepted offers in August alone, which for us is a record.
And this trend seems to be nationwide. In fact, according to FNAIM, the French Real Estate Federation, we may be heading for a record year in France in total number of sales with possibly 1,1M to 1,2M homes sold in 2021. France is not the only country to experience this effect, as many European nations have their domestic real estate market booming this year.
A little damper, however, on this positive analysis, is that even though we see foreigners coming back, they haven’t perhaps come back in the same numbers yet. Not all types of homes for sale are doing so well.
Question : Will there be an impact on real estate prices?
As I had mentioned a few weeks ago, a current issue for us agencies is the lack of new homes for sale. So, if you combine less supply with more demand, you automatically end up with a positive effect on prices. A recent national statistic even indicates a price increase of nearly 9% for houses and 5,5 % for apartments over the past 12 months. So yes indeed, prices are going up a bit in general, although not all types of homes benefit from this strong demand.
Question : So, what do you think we need to keep an eye on?
There are a number of indicators we need to monitor, such as inflation or even prices of raw materials. Also, as government support for businesses will soon be reduced, will companies that were on the edge because of the pandemic be able to survive? Can the economy hold on and recover? We are talking about 6 to 7% economic growth this year, which is fantastic, but that’s compared to last year’s poor result. So, I am both hopeful and a bit cautious.
On the other hand, I do believe that the current trend of aiming for a better home with perhaps more outdoor space and greenery will continue. Remember, working from home is a new must. So, the tendency of moving from larger cities like Paris to our more favorable region is probably here to stay. Our area is also closer for many Northern Europeans than the further coast of Spain or Portugal, so I think we will benefit from this proximity that allows people to drive here if flying is restricted.
Question : How do you feel about the future?
I am starting to feel that the worst of the pandemic is behind us. At least, I hope so. So, we can expect a more normal fall and winter in terms of travel. And since many northern Europeans are longing to enjoy some well-deserved sunshine after having been stuck in their own countries for so long. Hopefully they will come back strong and steady. Domestically, I do believe that the current trend of aiming for a better home with perhaps more outdoor space and greenery is set to continue. Remember, working from home is a new must.
So, our focus is now to increase our portfolio of homes for sale in order to meet this current demand.