How is the situation with the real estate market on the French Riviera in 2020
What was 2019 like for the French Riviera property market? And what to expect from 2020? Is it worth to buy real estate or is it better to wait a littie with buying a property?
Real Estate Market on the French Riviera in 2020: Forecasts
The Cote d'Azur is the region with the most expensive real estate in France. On a par with Paris, to buy an apartment, house, villa here - to lay out a fortune or successfully invest capital. Besides the fact that the South of France has stunning landscapes, a comfortable climate and elite parties: it’s good to live here and just relax in the hot seasons. Having a villa on the Riviera for vacation and relaxation is not only a demonstration of success, but also an investment. And as it was shown in 2018-2019, it is investing in slowly growing savings.
The situation on the real estate market until 2019
2015-2016, the real estate market in France was stagnant on the whole. This was largely explained by political instability and early presidential elections. By the way, in 2017, when the elections were held, they predicted a drop in real estate demand by 4%. However, the results of 2017 became a way out of stagnation - the total number of transactions increased by 15% compared to 2016.
What happened in 2019
The year 2019 for France in the real estate sector has been steadily good: in a number of regions, the price of primary and secondary housing has increased by 1.2% - 2%. And on the Cote d'Azur, the past year was the year of stabilization of pricing policy and increasing in the percentage of successful transactions. In the first quarter only, the percentage of sales increased by 10.5% compared to the same period in 2018.
In 2019, interest in secondary housing increased: in the information which was published by the Notary Chamber, the cost of apartments in the old fund has increased by 2%. Even in Nice, the cost of housing in the old fund has increased by 1.6%.
A positive trend is the fact that over 5 years (from 2014 to 2018), the number of successful transactions for the sale of real estate to foreign citizens increased from 10% to 22%. The interest of foreign investors in luxury real estate in France and in particular on the Cote d'Azur continues to grow. A direct indicator of this is the sensational sale of the royal villa Les Cedres to a Ukrainian billionaire for 220 million euros.
The political situation in Europe in 2019 was reflected in the real estate market in France:
- Emmanuel Macron conducted a series of reforms in the tax system, including real estate. Now, when buying property worth more than 1.3 million euros, tax privileges for wealth do not apply.
- Due to the Britain's exit from the EU, the British rushed to get rid of foreign real estate, including on the French Riviera.
- Sanctions in Russia also prompted wealthy citizens to get rid of real estate abroad, and Russians were well-known connoisseurs of the Cote d'Azur.
What is not good for owners of luxury real estate on the Cote d'Azur - this is the opportunity for potential buyers to get luxury square meters on optimal conditions. An additional factor to the decision to purchase an accomodation in France is a low mortgage rate. The Cote d'Azur real estate market continues to attract the interest of foreign investors, this trend will be kept in 2020.
Forecasts for 2020
In November 2019, Propriétés Le Figaro published a survey of the French population. The main issues were the acquisition of luxury real estate in France. The main data from the survey:
- 77% of respondents believe that 2020 is the best time to buy elite real estate;
- 39% plan to purchase elite real estate under the program for one year;
- 24% would like to purchase elite real estate within 1-2 years;
- 15% plan to purchase elite real estate in the period from 2 to 5 years.
- 26% of respondents prefer to buy real estate from the old fund;
- For 77%, the most important thing when buying is location in a popular and elite place;
- 47% consider that the most important thing is a good view.
Propriétés Le Figaro suggested that 2020 should be very successful for the French Riviera. In the light of political and economic events in the world, real estate investments remain a reliable investment. Exactly this attracts potential buyers to the south of France.
To buy or not to buy luxury real estate in France in 2020?
At the beginning of 2020, it is the optimal "weather" for the acquisition of expensive real estate on the Cote d'Azur. Firstly, you may find profitable offers from those who are seeking how to return quickky the capital of the British and Russian. Secondly, in 2022 the next presidential election will be held: during the period from 2021, offers will decrease, and after the election the situation with the price of luxury housing might not change for the better for the buyer.
For example, if a candidate who promises to review or abolish IFI elite real estate tax (impôt sur la fortune immobilière) is in the lead, some real estate owners will decide to stop the sale and sell it more expensive or even remove it from the sale after the election.
The election period can greatly affect pricing and demand for real estate on the Cote d'Azur. Real estate prices may increase up to 10% in case of tax cancellation or the current state of the French real estate market will remain. So, investment in luxury housing in 2020 can save a considerable amount of money if you have been planning a purchase for a long time.
When to buy property on the Cote d'Azur
A favorable period for a purchase starts in mid-autumn (somewhere in October-November) and ends in March. In March, the tourist season begins and those villas, luxury apartments and apartments that are not for sale will be rented out. This situation applies to the entire coast, including Monaco.