- Despite the health crisis and its economic consequences, the real estate sector has resisted in Toulouse.
- The Pink City even experienced a surge in prices in 2020 that it had not experienced for ten years.
- Real estate prices have climbed to 9.2% in Toulouse, the square meter now being sold on average at 3,030 euros.
A year ago, France was confined. At the time, real estate professionals in Toulouse had a blocked horizon and no one would have thought of having a good year. However, despite the health crisis, two confinements and their consequences on the economy of the Pink City, the inhabitants decided to invest.
Admittedly, on the new home market, apartment sales fell by 37%, a trend due in part to the lack of projects hampered by both the Covid-19 and the municipal ones. But, in the old, “this drop is only 5%, just after a record year,” notes Philippe Pailhès, vice-president of the interdepartmental chamber of notaries who presented his annual report of transactions.
Unlike the Paris region, the people of Toulouse have not fled to the countryside to afford a house and permanently opt for telework. If the beginnings were felt in May, it is ultimately in the heart of the city that the outbreak was the most important. And the crisis in no way slowed it down.
“It is a safe haven”
In Haute-Garonne, this increase is 5.4% (2,640 euros / m2) and 9% in Toulouse (3,030 euros / m2) over the past year, which has not happened for ten years. When Bordeaux only increased by 2% over the same period.
“It’s surprising, one would have thought that the market was going to collapse, but on the contrary, it is a safe haven. There was excitement coming out of confinement, people were afraid of a financial crisis and took out their savings to buy an apartment. People rushed to take advantage of the low rates as well, ”continues the Toulouse lawyer.
Old apartments: median price per m² and changes over one year to #Toulouse and in the neighborhoods. 3/4 of neighborhoods are experiencing a double-digit increase.
– Notaries – Toulouse Court of Appeal (@Notaires_Tlse) March 16, 2021
And almost all the districts of the Pink City are concerned, from the most expensive (Saint-Etienne at 5,540 euros + 16.1%) to the cheapest (Papus – 1,180 euros + 15.9%). Sometimes insane prices, like this 17.07 m2 apartment not far from the prefecture sold rented on Monday for 115,000 euros.
For some neighborhoods, there is a catch-up effect. In others, the advancement of urban planning has revived speculation. Especially near the Matabiau station. If the LGV is not about to arrive, the first steps have been taken and the outlying districts are benefiting from these symbolic effects. “Work has started on avenue de Lyon and the beginnings of the transformation are visible. There is therefore an interest in Matabiau and Bonnefoy who have passed the symbolic bar of 3,000 euros, ”continues Philippe Pailhès.
Prices that shouldn’t fall anytime soon. While a slowdown is perhaps to be expected in the soaring and speculation, Haute-Garonne notaries expect to record a hike of around 4% over the next few months.