The French Riviera is a place to enjoy life, take long walks along the Mediterranean Sea and revel in the beauty of the gardens and the scenic views, while soaking up the vibrant French energy. It is famous for several reasons including its breathtaking landscapes, perfect blue water and its undeniable appeal as the choice residence for writers, actors, painters and billionaires. Provence, the region within which the French Riviera is located, is an ideal place to savor a wide range of food and wine, explore the rich culture by traveling through the small villages, learn French in the local markets and breathe in the soothing scents of lavender. It offers an opportunity to relish the landscapes through the eyes of great artists like Vincent Van Gogh.
However, what does it stand for the real-estate market in these regions? What is the situation at the current moment and what is the forecast for 2019?
These diverse aspects of the French Riviera contribute to the value of the real estate in the region placing it predominantly within the luxury segment. Currently, real estate in this region includes some of the world’s most expensive properties such as the Villa Les Cèdres which was recently put up for sale at £315 million. Interestingly, the fluctuations observed in various economies have had no significant effect on the real estate market in the French Riviera especially as the prices in 2018 fell by only about 1% when compared with the previous year. Although the prices seem to be rising, experts are prepared for a slight reduction in 2019, but they maintain that the conditions for investing in luxury real estate on the Côte d'Azur are pretty favourable.
There is currently a measurable growth in the demand for luxury properties (sale and rent) especially in cities such as Cannes, Mougins and Valonne. This market growth can be attributed to the steady prices of properties in the area as well as the growing interest of Northern Europeans in the luxury real estate on the French Riviera. Specifically, France is ranked third for its appeal to buyers and investors from the North in its luxury real estate market.
The luxury properties in this area provide superior living conditions or a certain level of comfort at least. Buyers can make a selection from a grand collection of exquisite and refined properties: villas with the sea view, houses with modern designs, hilltop manor houses, traditional French farmhouses, luxury apartments, penthouses, castles with gardens and even vineyards.
Although, the real estate market in Provence is generally favourable, the most stable prices remain within the luxury market as those outside this segment have not experienced the same level of growth. Similarly, the prices of properties located inside the cities have increased by approximately 5% when compared with the past year, leading to an average cost of 3,800 euros per square meter. Trends show that small cozy apartments or studios are in high demand and attract numerous investors as they offer significant returns when rented out particularly to students. Private buyers are mostly interested in vintage-style apartments in cities such as Aix-en-Provence, Gordes, Lourmarin and Saint-Remy de Provence.
The villas, houses and castles with large expanses of land, though very attractive to specific investors, pose a greater challenge to sell as their prices are higher and their owners seem reluctant to reduce them. On the other hand, properties located around the northern part of the region are relatively more affordable and their prices seem to have decreased by about 5% in the past year. There are also some incredible offers for superior luxury real estate in Provence and the French Riviera. The southern part of France provides a comfortable standard of living, varied attractions and cultural diversity, which make it a prime destination for buyers, investors and prospective renters.