2020 review and 2021 outlook of the Mercure Group, specialist in luxury real estate

"Passion and expertise are the DNA of the Mercure Group, a DNA enriched by the alliance with Forbes Global Properties allowing more and more clients to offer themselves the exception and realize their dreams" declares Olivier de Chabot-Tramecourt, CEO of the Mercure Group.

The Mercure Group entered 2020 in the dynamic started at the end of 2019, recording a volume of transactions representing 30% of the total volume of 2019. The first confinement interrupted this excellent start even if the digitization of advice and services has made it possible to maintain the relationship with customers. Deconfinement was accompanied by a spectacular rebound with goods sold without negotiation and with very few conditions precedent. The 2nd confinement that took place in November led to a further decline, with fewer buyers but more successful projects thus contributing to the rebalancing between supply and demand.

In total, the Mercure Group completed more than 250 euros in transactions in 000. The Group still owns 000% of the offer of châteaux in France with 2020 properties in the portfolio (+ 80% compared to 474) and sells 10 château out of 2019 in France, which represents no less than 1 castles sold in 3.

The Mercure Group primarily reaches CSP + customers, 2/3 of whom are subject to IFI. The highlight of 2020 is the drop in foreign customers. In the Group, foreign investors represented 22% of turnover against 31% in 2019 and 17% of sales against 22% in 2019. Conversely, the traffic restrictions imposed by the Covid, have pushed customers Frenchwoman who previously made the choice of abroad for the purchase of a second home, to refer to the French market.

2020 or rebalancing towards rural areas in all its forms

The health crisis, the development of teleworking and the quest for authenticity have given the rural market a boost after 12 difficult years. As a result of the first confinement, the city centers have lost their splendor in favor of the outskirts, a means of gaining space and an exterior (terrace or garden).

While transactions for tourist use have come to a halt, the second home market is experiencing an upturn in activity with an increase in acquisitions of 6% for the Mercure Group in 2020. This attraction for second homes is accompanied by an evolution of uses from strictly secondary (holidays and weekends) to semi-main. Facilitated by the development of teleworking, this new way of investing in secondary education nevertheless remains conditional on location (less than 2 hours from the workplace) and access to services (shops, means of transport, etc.).

In the market for prestige and character properties, areas located in a circle of 200km around Paris and 100km around Lyon have seen their prices increase. Normandy and Center Val de Loire thus benefited from the Covid effect and their relative proximity to the capital. New Aquitaine attracts both teleworking beneficiaries and new retirees, while Occitanie attracts for its relaxed lifestyle at prices lower than those on the Côte d'Azur. Finally, the areas located near the TGV axes, Bordeaux, Nantes, Rennes and Vannes are very popular.

And a more contrasted urban market

The city centers of large cities (Lyon, Toulouse, Bordeaux) still suffer from a shortage of goods for sale. Nevertheless, by causing a form of wait-and-see attitude among buyers, the health crisis has made sellers more reluctant and more inclined to revise their claims downwards.

In Paris, the market remains dynamic and the gap is narrowing between supply and demand (6% against 10 to 15% previously).

The chateaux market is regaining color while remaining qualitative

On the strength of its leadership role in this niche market, the Mercure Group has noted the appeal created by containment and the call of the sea for this type of property.

In a market that had been severely impacted in 2008, prices held up. The balance of power has sometimes even been reversed on the side of sellers and the rating of castles near metropolises has increased. (15km from large cities, 100km from Paris).

In 2021, the outlook is encouraging but fragile given the health context

In 2020, the stone has shown more than ever that it is retaining its safe haven value and the trend should not be reversed this year, supported by rates that are still low and a resurgence of interest in investments in France.

The market should be maintained in the first quarter following the end of 2020. However, doubts about the economic situation and the loss of confidence in the future could ultimately slow down the market, as could the related tax pressure on property. to local tax reforms but also to “whatever the cost” that will have to be financed. In addition, the uncertainties about foreign customers, if they were to persist, will have consequences on the prices of certain goods. Finally, the reluctance of sellers by reducing the supply of goods could well contribute to seizing the market.