The extraordinary property scramble in Deauville

Parisians have been flocking to Deauville since spring 2020 and the introduction of the first health restrictions. Which has led to a 15-20% price rise in just one year. And this trend is continuing into summer 2021, with demand largely outstripping supply according to the BARNES Deauville office.

In the wake of a year marked by a stampede of Parisian buyers snapping up primary and secondary residences in Deauville, some heavy question marks hung over the first half of 2021. Would the craze continue? “The trend has actually accelerated,” says Bénédicte Belvisi, Director of BARNES Deauville. Between January and June 2021, we posted turnover in excess of the entire year 2020! This trend is not entirely unprecedented, however, as it is something we’ve been seeing since 2017, a year marked by the "gilets jaunes" (yellow vests) strikes in Paris”.

Parisians are rediscovering Deauville and are increasingly looking to sell their primary residences in the capital (or their holiday homes in Provence or on the French Riviera) and move to Normandy. “The leap in quality of life is instant”, says Bénédicte Belvisi. “Since its creation in the 19th century, Deauville has been considered a natural extension of Paris, the open air, the sea and greenery at that! What’s more, there are plenty of activities on offer, and the town even has a new cultural centre, Les Franciscaines, since 13 May 2021, comprising a museum, an auditorium and temporary exhibitions.”

However, the health situation has blocked foreign buyers from the Deauville property market for the last year. Only Belgian clients seem to be returning, and timidly at that, this summer.

New buyer expectations

“Young people are increasingly dominating the buyer’s market: they want to create a family retreat in Deauville where they can spend several days a week, especially since they can work from home”, explains Bénédicte Belvisi. The most common scenario is that of people looking for a semi-primary residence in Deauville, but some buyers have deliberately left Paris to move to Normandy permanently and enrolled their children in schools.

These buyers have greater financial means than before for their buying plans in Deauville, with transactions exceeding €3 million becoming frequent these days. Comfortable budgets that were previously used to buy property in Paris, Provence or on the French Riviera, in particular.

Outdoor spaces are a near unanimous demand, whether for houses or apartments. So much so that properties without one have been taken off the market to instead be potentially rented out. “As for the countryside, buyers want properties in a calm, unspoilt setting”, says Bénédicte Belvisi.

Which properties are most in demand?

  • Family apartments, but it’s rare to find one over 100 sq.m.
  • Anglo-Norman villa in Deauville with 4 or 5 bedrooms and a garden.
  • Houses with charm in the countryside with a garden and pool (or with the possibility to install one), ideally 15 minutes from Deauville. “But buyers’ demands are changing”, says Bénédicte Belvisi. “Before the COVID-19 epidemic, buyers didn't want to be more than 15 minutes from the coast, but many are now willing to buy 30 minutes from Deauville, or more. With increasing budgets, of up to €2 million. For example, we recently sold a fantastic property 45 minutes from Deauville in less than ten days for €1.5 million. Sale times for properties further from the coast have narrowed considerably in one year”.

Strong demand synonymous with rising prices

Seldom has a property market been characterised by such an imbalance between supply and demand. “There aren't enough properties available for sale,” says Bénédicte Belvisi. “Our portfolio has been halved and we have a waiting list for buyers. With an increasing number of off market sales, without advertising”.

A situation that has triggered price rises of between 15 and 20% compared to the start of 2020, pre-COVID-19. And this upward trend has continued since early 2021.

Average sale price in July 2021 (*)
Family villa with charm in Deauville1.5 to 2.5 million euros
Apartment with a sea view in Deauville€8,000 to €10,000 per sq.m.
House with charm in the countryside with pool1.5 to 2 million euros

(*) source BARNES Deauville

Increasing numbers of flash sales

One morning in June, the BARNES Deauville team visited an apartment in a sea-view residence for the first time. At 11am, the sales mandate was signed electronically. The consultant immediately contacted one of his clients actively looking for a property and described the apartment, which matched their criteria. The potential buyer jumped in their car and arrived after a 2-hour drive with an offer at the asking price - around €800,000 - following a visit lasting just a few minutes! “We receive an average of 30 requests per apartment for those with a sea view, measuring between 70 and 100 sq.m. at €10,000 per sq.m.”, says Bénédicte Belvisi.

Seasonal rentals: a new balance in supply and demand

In terms of rentals, 2020 saw BARNES Deauville’s turnover increase by 3.5! “2020 was an entirely exceptional year,” confirms Isabelle Vaugeois, rental manager at the BARNES Deauville office. “A frenzy that began in spring and continued off-season, until winter. With rental periods regularly exceeding one month. Things are now returning to normal, with average durations returning to usual levels at around 15 days”.

What about prices? According to Isabelle Vaugeois, they are stable overall, with sufficient supply to meet demand:

Price for a one-week rental in high season (*)
3-bed apartment, 100 sq.m. with terrace€3,500
Detached family house, 200 to 250 sq.m., 5 bedrooms, outdoor spaces€7,500/€10,000
House on the outskirts of town, 300 to 600 sq.m. with a pool and tennis court€15,000/€18,000
Manor or premium property on the seafront, 700 sq.m. minimum€20,000/€35,000
Thatched property in Pont-l’Evêque€6,500

(*) Source BARNES Deauville

Our clients willing to pay over €100,000 per week for a villa on the French Riviera generally set a maximum budget of €25,000 per week for Deauville”, adds Isabelle Vaugeois. This imbalance had been present for many years, but 2020 seems to have reset the deck and brought the quality of supply in Deauville back to the forefront, both in terms of properties and services as well as lifestyle and leisure activities”.

Summer 2021 is seeing the return of regular families, the sign of a certain return to normal in the rental market in Deauville. Foreign clients, who were unable to travel to Deauville during 2020 due to health restrictions, are still few in number given the uncertainties still lingering over international travel. But the BARNES Deauville office has received requests from the United States, Switzerland, Belgium and the Netherlands.

laurent@sobarnes.com

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Contact :

BARNES Deauville - 5, rue Hoche, 14800 Deauville – France

Tél. : +33 (0)2 31 81 28 29 / Barnes-Deauville.com

 

 

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