The third quarter of 2022 is an equivalent of the previous 4 quarters with more sales than new properties listed, this market dry up is due to the virtual disappearance of new villas for sale which in past years were the driving force behind transactions, resulting from the increase in taxation on capital gain from 20% to 35% for the first 8 years.
Indeed the sellers prefer to rent their home while waiting for the 8 years of detention to benefit from the rate of 20% on capital gain tax.
This temporary hold of the real estate market should end in the years 2026 to 2028.
The first consequence of the scarcity of properties for sale is the growth of prices in certain area such as Gustavia where the price per sqm of a buildable land as well as the price of apartments saw an increase of 32% over the 9 first months of this year, it is not the same in areas where the urbanization was too important.
The inventory of homes for sale is stable for villas over 10,000,000 euros, on the other hand for goods under 3,000,000 euros the inventory has fallen by 54% in one year.
The second consequence of the scarcity of the market is the orientation of real estate agencies towards property management and rentals.
The third consequence is the drop in tax revenue for the Collectivité linked to the drop in transactions by 20 to 30%.