Like other sectors, real estate has not escaped the economic crisis. Despite everything, the real estate market in Guadeloupe continues to record transactions. The coronavirus pandemic appears not to have restrained buyers. Demand remains reasonable and should also increase according to the Guadeloupe real estate observatory.
Homes are the most sought after by potential customers, but other types of properties continue to be popular. The local market is therefore doing very well even in this time of crisis.
Longer sales times
The coronavirus (Covid-19) has had an impact on the local real estate market. Transactions have declined due to limited travel due to containment. Nevertheless, the resumption of freedom of movement should revive the Guadeloupe real estate market trusted by several construction players such as the Jacques Gaddarkhan Group, builder of the brand new CHU des Abymes. Demand is expected to increase in order to bring more dynamism to a market that has been slowing for some time. But the market gives more advantages to sellers given the still quite limited supply due to the health crisis.
Even if the offers are few on the market, the prices remain reasonable. Prices seem to be holding up at this stage.
Some goods had difficulty finding buyers quickly, probably due to the pandemic. Indeed, the selling time remains longer than it was before the pandemic. According to the observation of the Guadeloupe real estate observatory, transactions can take up to 28 weeks.
More difficult borrowing conditions
Regarding the financing of the acquisition of real estate, it is more complex to obtain a loan, this of course depends on the financial health of the loan applicant. If the process to follow to obtain a mortgage was simpler before the health crisis, it has become more delicate.
In this period of the coronavirus pandemic, it is important to have a personal contribution to convince lending organizations. This contribution makes it possible to demonstrate that you are a serious investor wishing to quickly materialize a real estate transaction. We already know that there has been a decline in GDP in Guadeloupe in 2019, we can assume that the 2020 GDP figures will also be declining in view of the Covid pandemic.
Loans granted can be time-limited as banks are unwilling to take too much risk. Even though the local market faces all of these constraints, sales seem to indicate an uptrend.
It is clear that the confinement has made many people want to find themselves in a house that offers a lot of space. The presence of a garden is generally a motivation to finalize transactions. Villas have gained market share to the detriment of apartments.
Regarding rentals, the market recorded a slight decline, especially for apartments. Real estate remains a safe haven that should make you want to grow your money instead of sleeping in an account that does not bring in anything concrete.
An uncertain future with hope at the end of the tunnel
The economic crisis linked to the Covid-19 pandemic seems endless. A feeling of uncertainty hangs over the local market. Credit application files are finding it increasingly difficult to obtain a loan. The conditions have become stricter. All of this obviously impacts the real estate market. A situation which should improve if Guadeloupe manages to extricate itself from the Covid pandemic to revive the local economy.
Many professionals face uncertainty. The local market requires strong political will to find a compromise despite the scale of the economic crisis and to restore household confidence.