The holiday home market is finally developing in the Pays de la Loire or in the Grand Est. On the contrary, in the most popular regions such as Normandy or Provence-Alpes-Côte d’Azur, demand is declining.
Who said a second home has to be located by the sea? In France, some territories are more attractive than others when it comes to buying a holiday home, with half of the regions accounting for 70% of demand. But in 2023, the traditionally most popular areas will be a little less popular, according to data from real estate mortgage broker Pretto.
At the end of Covid, only the Provence-Alpes-Côte d’Azur and Normandy regions concentrated a quarter of the research for second homes. At the end of 2023, it was only 20%. Between 2021 and 2023, demand fell by 22% for the Provence-Alpes-Côte d’Azur region and by 17% for Normandy. This decline benefited other territories.
Buyers turned in particular to the Pays de la Loire and the Grand Est, with respectively +29% and +26% of customers supported by Pretto in the search for a second home between 2021 and 2023. They are followed by Burgundy-Franche-Comté (+20%), Hauts-de-France (+15%) and Brittany (+12%), again according to Pretto data.
The regions that are recording the strongest increase are also those where the average prices of goods are among the lowest. A phenomenon to be linked to the increase in the cost of credit in the last two years, which has weighed on the purchasing power of buyers. In 2022, the overall demand for second homes has also slowed down.
The Return of Second Home Buyers
But since the rate cuts began, buyers are coming back. According to Pretto, demand for second homes has seen a strong rebound in the summer of 2023, stabilizing at high levels even after the usual summer peak.
“The beginning of 2024 also confirms this upward trend, with a first quarter up more than 50% compared to the first quarter of 2023,” the broker explains in a statement.
The company is finally seeing a return from foreign buyers. They had avoided second homes since mid-2022. But with rates falling, they are returning to levels close to 2021, around 12%.
They are on average richer than French buyers. According to Pretto, non-residents earn on average 80% more than a metropolitan borrower and the goods purchased cost 65% more and on average exceed the threshold of 530 thousand euros.
Study conducted annually by the mortgage broker Pretto on a sample of approximately 100,000 clients per year. The data cited correspond to clients who have applied for a second home and are supported by Pretto in their research (without the project necessarily leading to a purchase).