2019 Overview and 2020 Forecast for the French Riviera real estate market

2019, a successful year for real estate on the French Riviera

While some French regions experienced a significant increase in property prices during 2019, the French Riviera saw both prices and sales stabilize for a majority of property transactions. Aside from Antibes, where the price per square meter actually increased by 1.16% compared to 2018.

On the other hand, older properties were a major success for investors in 2019, with transaction volumes up 10.5% between the first half of 2018 and the first half of 2019. In the report published by the Chamber of Notaries, the prices of apartments over 10 years old are on the rise. In Cagnes-sur-Mer, for example, old buildings recorded a 2% increase in 2019, compared to 2018. Also in Nice, the price of old buildings rose by 1.6%.

This increase in prices and sales can be explained in part by the particularly low credit rates experienced during 2019. In January, increases were less than 0.05% for 10-, 12-, 15-, 20- and 25-year loans. In addition, a decrease of around 0.02 points was even observed for 7-year credit rates, to 0.86% at the beginning of 2019. This situation, which is particularly interesting for people wishing to invest in real estate on credit, has led to an increase in real estate transactions in France, and especially on the French Riviera.

While the French Riviera attracts a large number of French people, it continues to attract more and more foreign buyers with varying needs and budgets. These foreigners invest primarily in the second home market. Indeed, the international and timeless reputation of certain places on the Côte d'Azur makes them expensive investments, admittedly, but reliable over the long term. Furthermore, some investors choose to invest in a second home in cities famous for their cultural wealth, such as Cannes with the Film Festival.

According to Marie-Claire Sangouard, Director of Engel & Völkers Côte d'Azur:

"With more than 300 days of sunshine a year, with the sea and the mountains less than 2 hours away, the French Riviera has always been a dream destination and remains the perfect holiday get-away. Real estate investments are safe and the possibility of capitalizing on your investment through seasonal rentals is an excellent choice."

The French Riviera real estate market: what are the forecasts for 2020?

Last November, Propriétés Le Figaro published a report analyzing the challenges of the prestigious French real estate market in 2020, allowing us to provide some possible answers on the real estate scene for the coming year.

According to this study that was conducted throughout France, 77% of respondents believe that this is a good time to buy real estate. 39% of them have planned to acquire a luxury property within less than a year, 24% within 1 to 2 years and 15% within 2 to 5 years.

In addition, 26% of which said they would like to invest in a second home, representing a strong potential of new buyers for the French Riviera.

Propriétés Le Figaro also wanted to put a finger on the main criteria taken into account when purchasing a property. For 77% of respondents, the property's location is the most important element. For 47%, the view is the most important criterion. 

The results of this study clearly show that 2020 promises to be a year full of real estate transactions on the

Côte d'Azur

, whose living conditions and climate continue to be a source of dreams for French and foreign buyers.

Keep reading: 2019 Overview and 2020 Forecast for the Paris real estate market