Real estate: “We are rather on a stability of transactions and prices”

Olivier Rouvière: “The real estate market has cleaned up.” Midi Libre – JPS

As every year, the Century 21 agency network takes stock of the past year. Interview with Olivier Rouvière, who co-manages six agencies in the sector, including the one in Lunel.

How did the real estate market fare in the Lunel region in 2024?

We are on a stability compared to the previous year because here, we remain in a fairly attractive region. But at the national level, we are rather on a trend of -10% last year after -20% in 2023. We are on 780,000 transactions nationwide last year against 1.2 million in the post-Covid euphoria. But it is not a crisis like in 2009. There, let's say that we have returned to standard transaction levels for the market. This is essentially linked to the rise in interest rates. We also note that there are fewer offers and fewer demands: it balances out.

Was the drop in prices, which began in 2023, confirmed last year??

After a drop in prices in 2023, we are rather on a stabilization in 2024 in the Lunel territory. But if we analyze the trend over ten years, we still see a clear increase in prices in Lunel. A small villa that sold for €180,000 ten years ago is today at €230,000. The seller who can lose today is the one who bought his property in 2021. On the other hand, for the buyer, the same villa in Baillargues and Lunel continues to be much cheaper in Lunel. For a villa at €250,000 in Lunel, you have to expect at least €100,000 more in Baillargues or Castelnau.

Has the behavior of buyers and sellers changed over the past two years??

We see that the market has restructured itself. In my opinion, it has completely cleaned up. People have turned to real estate professionals, they come back to seek physical relationships, advice and explanations. When the market is doing very well, there are always people who improvise as real estate agents. Today, we see it in Lunel, agencies have closed, others have sold to national brands and there are almost no more financial agents. In fact, in 2024, our Century 21 agencies (*) have consolidated compared to 2023 and we have worked less in an emergency.

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How do you imagine the trend in 2025 ?

We are rather looking at stability in terms of prices and transactions. Buyers now know that interest rates are stabilized between 3.5% and 4% and that we will not see the incredibly low levels of 2021 again, so those who have pending purchase plans will go for it. On the other hand, for first-time buyers, borrowing at a credit rate between 3 and 4 is more difficult than between 1 and 2, and it is therefore still difficult to buy, even if prices have fallen and remain lower in Lunellois than around Montpellier.

What is the profile of buyers and which properties are most in demand?

The search in Lunel, particularly for first-time buyers, is for a small villa with 2 to 3 bedrooms and a piece of land. In this market, we still have some momentum in Lunel. We remain a market of Montpellier because the properties are still much cheaper than in the municipalities around the Metropolis and the city is much more attractive than ten years ago with the projects to transform the city center, the covered markets or the future intercommunal swimming pool and the sun in addition.

Does the metamorphosis of the city centre have an impact on housing demand in this sector??

Buildings in the city centre are being sold and renovated little by little, but the turnover of housing remains low. In addition, we sense a new enthusiasm for the city centre but also a reluctance to invest in a city centre under construction. Then, we still have a significant demand from customers in neighbouring villages, retirees who want to be closer to the amenities offered by the city centre of Lunel to end their days. But this clientele often requires accommodation with a lift and parking.

What is the situation regarding investors and the new-build market in Lunel??

There are far fewer investors and some new programs have not been completed. We can say that in Lunel, the programs launched are ending but there are no new ones. We are on hold. But the real crisis concerns the rental market, Lunel is in a tense area, there are few offers and more encouragement for rental investment.

(*) The Rouvière Immobilier Group now has 6 agencies (Lunel, La Grande-Motte, Le Grau-du-Roi, Nîmes, Codognan and Vauvert). It offers management, transaction, rental, trusteeship and commercial services and will celebrate its 40th anniversary in 2027.