(MENAFN- EIN Presswire) Castle classified as historical heritage of the 17th century
Mercure Forbes Global Properties, specialised in prestige and character properties for 87 years, has posted a 22% increase.
2022 has been an excellent year for the group, with sustained and increasing growth, a rebalancing of our business between urban and rural areas while accelerating our structuring plan” - Olivier de Chabot-Tramecourt, CEO of Mercure Forbes Global Properties.PARIS, FRANCE, February 20, 2023 /einpresswire.com / -- The group began 2022 with the same momentum as at the end of 2021, recording 332 transactions for a volume of just over 290 million euros. The presidential elections did not interrupt the good start to the first half of 2022, which accounted for 60% of the year's transactions. The first signs of a slowdown came in July with a drop in visits and signatures. The property market contracted in the second half of the year as a result of the economic and geopolitical context. The rise in energy prices and new environmental standards led to a return to negotiation in favor of buyers of around 3 to 6%. The declining demand in major cities such as Bordeaux, Lyon, or Toulouse has led to a further downturn in this market, contributing to a rebalancing of prices, except in Paris, which has maintained its dynamic as the capital city and attraction to foreigners looking for top-of-the-range property in the City of Light.
Another remarkable fact of 2022: is the return of foreign customers. While Asian buyers have not yet returned and British customers are still few in number to request visiting properties, American customers have benefited from the euro/dollar parity with a gain in purchasing power of up to 20%. The group's foreign investors accounted for 14% of turnover compared to 11% in 2021 when European neighbors were predominant.
The castle market
The group's leadership in the castle market has seen a 14% increase in the segment's share of sales for the year, with castles accounting for 34% of Mercure forbes global properties ' transactions in 2022. The group still holds 50% of the castles for sale in France and maintains its market share of one in three castles sold in France with a cumulative number of over 5,100 castles sold.
Mercure Forbes Global Properties, a real estate group committed to the conservation and preservation of built heritage, is also becoming a leader of the Demeure Historique and strengthening its ties with Vieilles Maisons Françaises and Dartagnans.
2022 or the rebalancing between rural and urban areas
Since 2020, the sanitary crisis, the remote working new tendency, and people who are seeking an authentic lifestyle, have intensified the demand in the rural market. This phenomenon resulted in a 30% contraction in the stock of character houses, manor houses, and castles, especially in the attractive areas of the major cities and along the main communication routes (transport, internet, services, etc.). New customers in town centers contributed to a more balanced negotiation environment with sellers for well-situated flats and townhouses that have small exteriors, and, are endowed with the characteristics of a beautiful french heritage. This period contrasts with 2020 and 2021 where negotiations were difficult and properties were lacking.
We notice that the demand for properties that aim to develop tourist activity is currently increasing. It is however difficult to find an appropriate property for such commercial activities. For Mercure, the second home market is dynamic with an increase of 6% in 2022. This is motivated by the changes in the ways that the customers make use of the properties, for whom these second, vacation homes become their main address. This new lifestyle depends however on the location with the home ideally located less than 2 hours from the workplace, and access to services (shops, health, schools, etc.).
The areas within 200km from Paris and 100km from Lyon are still in high demand regarding the prestige and character properties market. Normandy and Centre Val de Loire continue to benefit from the 'telecommuting' effect and their relative proximity to the capital. New Aquitaine attracts both work-at-home beneficiaries and newly retired people, while Occitania is attractive for its relaxed lifestyle at lower prices than the Côte d'Azur. Finally, the areas near the TGV high-speed train lines, Bordeaux, Nantes, Rennes, and Vannes, are highly demanded but these areas are also confronted with a shortage of attractive properties.
In 2023, the perspectives are encouraging but uncertain due to the economic and geopolitical context
In 2023, the prestige and character property market has demonstrated its ability to attract customers for its resilience aspect. This trend will not be reversed this year because the market is supported by more reasoned prices and the market is also benefiting from the return of foreign customers. As a continuation of 2022, the market is expected to keep the same economic tendency in the year's first quarter. However, doubts about the economic and geopolitical situation and the uncertain future justified by the rising social movements could eventually default the market. In addition, the fiscal pressure on property linked to local tax reforms with the increase in property tax may increase the customer's reluctance to invest for a while. The postponement of projects from building a new house to investing in an already existing house, and the reluctance of sellers could also impact the market.
Character and prestige real estate is still a resilient market and remains a safe investment in uncertain times.
About Mercure Forbes Global Properties Group: Mercure Forbes Global Properties is a specialist and a true expert, and since 1936 has been offering the most comprehensive selection of French real estate. From charming houses to castles, from rural estates to urban and contemporary properties, the Mercure Forbes Global Properties group offers more than 1,000 character properties for sale and rent throughout France. With 20 locations throughout France and an international team, the group is committed to excellence in property by meeting the demands of a high-end French and foreign clientele.
Christelle Alamichel
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