At the end of the first trimester of 2025, Jean-Luc Léon, the managing partner of the Laforêt real estate agency in Guingamp, provided insights into the local real estate market. He reported a significant increase in demand, with a rise of 15%, predominantly in Guingamp and its surrounding areas, including Plouisy, Ploumagoar, Saint-Agathon, and Grâces.
Léon noted that the demand currently exceeds the available supply. "Properties are selling quite quickly if sellers align with market prices. Therefore, it’s crucial not to price above the market, as it risks leaving the property unsold," he explained.
He also highlighted that home prices are stabilizing, a trend that began to accelerate in 2024. "We observed a downward trend in prices, and now buyers can take advantage of these reductions, leading to a 12% increase in transactions during the first trimester of 2025," Léon stated.
Interestingly, about 90% of sales are now subject to negotiations. Buyers are no longer willing to pay any price, a shift from the post-COVID surge in property prices in 2021. "Prices had skyrocketed after COVID, but they have gradually stabilized in 2023-2024. We are now seeing more coherent pricing that aligns with buyers' projects and financing capabilities," Léon noted.
Financing conditions have become more favorable for buyers, with interest rates decreasing from 4.20% at the beginning of 2024 to around 3.20% to 3.10% in 2025. This decline in rates has restored purchasing power for buyers, making it easier to enter the market.
However, Léon emphasized that prospective homeowners are still cautious about their finances, paying close attention to their borrowing capacity and potential renovation costs. "We feel a dynamic interest from buyers in this first trimester, with many eager to become homeowners, but not at any price," he added.
In terms of property types, individual houses with small gardens are in high demand in Guingamp and its immediate vicinity. Buyers typically seek homes that allow easy access to shops, schools, and public transport. This demographic often includes families, young retirees, and individuals looking to downsize from rural properties to be closer to urban amenities.
For properties located further away, around 10-15 km from Guingamp, preferences lean toward larger farmhouses or stone houses with more extensive plots. Léon mentioned that these buyers often seek tranquility and nature while remaining close to urban centers and workplaces.
Over the past decade, Guingamp has seen considerable urban development, including downtown renovations and the introduction of free parking, enhancing its appeal. Léon remarked on the city's transformation, stating, "There’s a more dynamic atmosphere with large terraces emerging in the town square, creating a vibrant village feel that attracts both locals and those returning to the area after careers elsewhere."
Guingamp's strategic location is also a significant selling point. Léon described it as a "crossroads city" in the department, ideal for couples working in different locations like Morlaix and Paimpol. "The advantage is that couples can choose Guingamp to be equidistant from their workplaces while enjoying a dynamic city well-connected by road and rail," he said.
In addition to urban dwellers, Léon noted an increase in interest from individuals looking to escape city life, particularly Parisians seeking a better quality of life post-COVID. "We’ve seen many inquiries from those wanting to leave the stress and insecurity of urban living for a more peaceful existence," he remarked.
He also pointed out that some buyers are returning to the region after falling in love with it during vacations. "A country between Armor and Argoat appeals greatly to many," Léon expressed, referring to the balance of coastal and rural living.
As for the real estate outlook, Léon concluded, "The first trimester of 2025 marks a transitional phase in the market. While 2023 and 2024 were quieter, we now sense a shift with solid fundamentals supporting a market recovery. However, we remain cautious of potential political and economic fluctuations. I believe 2025 will be a stabilizing year for real estate, with a more pronounced recovery anticipated by 2026."
In the broader context of real estate finance, 2025 has seen considerable changes in fixed-rate mortgage interest rates. These rates have fluctuated significantly, impacting household borrowing capacity. Current rates for loans of various terms—10, 15, 20, or even 25 years—are considered good or excellent, with a good rate for a 10-year loan around 3.24% and an excellent rate closer to 2.75%.
As of November 2023, interest rates have generally decreased, allowing households to borrow more. For instance, a household with a monthly income of 4,000 euros could now consider an increase in their borrowing capacity of up to 20,000 euros compared to the previous year. This adjustment opens doors for new property acquisitions or better-suited investments.
Moreover, only about 10% of mortgage applications are deemed completely unfinanceable, indicating a slight easing of banking caution. To maximize chances of securing an attractive rate, potential borrowers are advised to maintain impeccable financial records, demonstrate the viability of their real estate projects, and consider bundling additional products with their loans.
In conclusion, as 2025 unfolds, the evolving landscape of real estate and financing in Guingamp and beyond presents both challenges and opportunities for buyers and investors alike. With careful planning and informed decisions, many are poised to navigate this dynamic market successfully.
