The current real estate market in Versailles, France is described as slow moving. While more transactions are taking place due to the decrease in mortgage rates earlier in the year, many sellers are unwilling to lower their prices. According to data from MeilleursAgents, real estate prices have decreased by 6.3% over the past year in the city, but have increased by 1.3% in the last three months. Sellers are advised to reduce their prices by 10-15% after six months on the market in order to attract buyers.
Even the most prestigious neighborhoods in Versailles, such as Saint-Louis and Notre-Dame, are not immune to price corrections. The average price per square meter in these areas is now below 10,000 euros, except in the luxury segment. For more affordable prices, buyers can look in the Montreuil neighborhood, where properties are selling for around 6,500 euros per square meter. The Versailles market is currently driven mainly by apartments, as there are few houses for sale in the area.
Another factor affecting the local real estate market is the upcoming Olympic Games, with Versailles hosting equestrian events from July 26 to August 11 in the park of the palace. This has led to increased interest in short-term rentals from investors. However, some properties that were taken off the rental market in anticipation of the games have not found renters due to inflated prices. Sellers are also holding out for higher prices, which could lead to disappointment in the market.
Prices that are too high are not finding takers, with some Airbnb hosts experiencing a series of cancellations due to overpricing compared to market rates. The expected increase in rental income during the Olympic Games is estimated to be double compared to a normal year, but inflated prices are deterring potential renters. It is important for sellers and landlords to be realistic about pricing and not expect excessive profits during this period of heightened demand.
In conclusion, the real estate market in Versailles is experiencing a slow but steady pace of transactions, with sellers needing to adjust their prices to attract buyers. While certain neighborhoods maintain their prestige, there is a trend towards more affordable properties in other areas of the city. The upcoming Olympic Games are influencing market dynamics, with investors turning to short-term rentals, but excessive pricing may lead to missed opportunities. Realistic pricing and expectations are key for both buyers and sellers in navigating the current market conditions in Versailles.
