Like many other sectors affected by the crisis, the real estate market is far from being spared. After a first confinement paralyzing real estate activity and making any transaction impossible, a large part of the French population has not yet given up on their real estate project. Despite a general downturn in the economy, housing remains a basic need and investing in “rock” remains a reliable value.
Thanks to its communication and information potential, the Web is today at the center of this market. Real estate lends itself very well to the digitalization game with many services accessible in just a few clicks: consultation of advertisements, initial contact, estimates and online property visits.
As a professional in this sector, it therefore becomes necessary to develop a marketing strategy by taking advantage of what digital tools can offer you. While some numbers seem predictable, others bring their share of surprises! Here is an overview of the 2021 real estate market in France.
What has emerged after the deconfinement of April 2020 is that real estate is resisting! While a portion of potential homebuyers might have expected a significant drop in house prices, the data clearly indicates that the trend remains upward:
The LPI-SeLoger barometer gives some additional details on the prices of old housing:
In some medium-sized towns, a significant drop was noted, notably with almost 5% for Dunkirk. Tourcoing recorded a drop of up to -13.3%. Despite an economic context that seems unfavorable, prices therefore continue to increase overall.
The coronavirus epidemic has caused health damage, but also destroyed many jobs and resulted in the closure of a considerable number of businesses. On the other hand, because of insufficient guarantees, the banks therefore grant less mortgage loans. Collateral damage that the real estate market would have done well !
The FNAIM indicates a slower price increase during the month of August, with 0.8% more than the previous quarter. Prospective buyers do not seem to expect a decrease in the value of the properties offered for sale. There are still relatively few offers on the market ; which encourages them to make their real estate project a reality without wasting time and without speculating indefinitely.
Between March and April 2020, France was almost completely at a standstill and the real estate sector also suffered from this drop in activity: agencies closed, visits physically impossible, sales agreements delayed or canceled … A hard blow difficult to catch up for the sector. According to INSEE, nearly 150,000 transactions were not carried out during this confined period: a marked decrease in activity that could not have been avoided. This represents an annual loss of 15% of sales and which would extend, again according to INSEE, to 25% at the end of 2020.
However, the confinement gave rise to a desire for a larger living space with the possibility of having a garden. In a poll conducted by OpinionWay, nearly 60% of French people polled say they want to get closer to nature. A third of those polled are even seriously considering the idea of leaving city life and moving to the countryside.
It is also important to note that, in many cases, an acquisition of a good is built over several years. For first-time or second-time buyers, the crisis has only postponed their real estate project for a few months.
Investing in real estate does not only mean finding a medium or long term roof, but is perceived by many French households (especially young people) as a way out to overcome an uncertain future. This year 2020 therefore sees this idea reinforced by an economic context further weakened by the COVID crisis. And in this case, housing remains a priority.
As a result, the real estate industry is adapting to this unprecedented situation and surviving with great resistance.
It is obvious: the possibilities offered by the internet allow the activity of many sectors to be developed. Taking advantage of digital media increasingly present in everyday life such as computers, smartphones and tablets, access to information and services that have become essential today is instantaneous. Real estate is also benefiting from this era of digitalization by offering online services aimed at facilitating transactions: ads, virtual tours, apartment or house valuations. All this is accessible from home or directly on your phone using applications.
According to an Opinion Way survey:
These figures clearly show that in 2021, real estate players therefore have every interest in implementing a digital strategy in order to be more visible on the web. To do this, real estate agencies must make the best use of various means:
Of course, these services are completely complementary with those of a traditional agency. Moreover, the synergy of the two approaches is likely to be highly appreciated by potential customers; whether they are sellers of real estate or potential buyers.
Do you have a firm belief that the real estate market still has a bright future ahead of it ? Do you want to develop the full potential of your real estate activity ? An effective communication approach must therefore make full use of the resources and means of the web.
Our Alioze agency, specialized in real estate communication and digital marketing, supports you in your digital project. In a highly competitive sector, our team offers you the implementation and monitoring of a strategy aimed at making you gain visibility on the web.
See also: our article on figures and trends of the web 2020.