A slow recovery. This is how we could describe the current state of the real estate market in Versailles (Yvelines). Although more transactions have been carried out since the decline in property loan rates that began at the start of the year, many sellers are refusing to lower their prices.
According to data from MeilleursAgents, property prices fell by 6.3% in one year in the city, but they increased again by 1.3% over three months. It prevents, “if the property has been online for more than six months, sellers must agree to a discount of 10% to 15% compared to the starting price, before negotiations [pour espérer intéresser les acquéreurs] »specifies Nicolas Fels, director of the Century 21 agency at the Cathedral.
Even the Saint-Louis and Notre-Dame districts, the most popular in the city, very rarely escape this type of correction. The average square meter in this sector is now below 10,000 euros, except at the high end.
For more affordable prices, you have to go to the Montreuil district, where properties sell for around 6,500 euros per square meter. “The Versailles market is currently mainly driven by apartments, there are few houses for sale”, specifies the chamber of notaries of Paris – Ile-de-France. For these properties, it costs nearly 1.2 million euros on average to obtain them, according to data from notaries.
Another phenomenon affects the local market, both for transactions and rentals: the imminence of the Olympic Games – Versailles will notably host horse racing events from July 26 to August 11, within the castle grounds. Enough to push investors to temporarily turn to seasonal rentals.
Above-ground rates
“Some properties, since February and March, have not been rented again. Owners ask us if we can take care of the tourist management of their accommodation during the competition, which we do not do”, explains Nicolas Fels. A wait-and-see attitude that we also find among sellers who do not wish to negotiate the price of their property downwards. “It’s very risky, the owners think they will make a lot of money, but there will be a disappointing effect”anticipates the real estate agent.
Above-ground rates that will not find takers, according to Lexie David, communications manager for the WeHost concierge service. “It is estimated that, compared to a normal year, people who rent will multiply their earnings by two, but not more. Moreover, we have recently seen a series of cascading cancellations for landlords who have offered accommodation that is far too expensive compared to the market”she notes.
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