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ANALYSIS OF THE FRENCH RIVIERA REAL ESTATE MARKET FOR THE FIRST HALF OF 2024
Bank interest rates began to fall at the beginning of 2024, bringing a new lease of life to the French Riviera real estate market. Today, it is possible to borrow at a fixed rate of 3.5% over 25 years. We expect to see a further rate decrease by the end of the year, which could further energize the sector.
The real estate market in the region, between Nice and Monaco, shows contrasting dynamics.
The primary home market, especially for first-time buyers, remains under pressure. Rising real estate prices continue to pose challenges, and it is essential that our sellers adjust their expectations by moving closer to market prices to facilitate transactions.
The balance between supply and demand in this segment requires constant attention.
The luxury goods market, in particular in the prestigious areas of Villefranche-sur-Mer, Beaulieu-sur-Mer and Saint-Jean-Cap-Ferrat, is characterised by continued strong demand despite limited stock. This situation creates a continuous tension with prices that remain high due to the inadequacy of supply in relation to demand. Our current clientele is mainly made up of Americans, Scandinavians and Anglo-Saxons, who continue to invest in these prestigious sectors.
In Nice, the real estate market continues to attract an international clientele, particularly in the emblematic districts of the Carré d'Or, the Promenade des Anglais, Mont Boron and Franck Pilatte. These areas are popular with foreign buyers, who are looking for renovated apartments with terrace and sea view. The Port of Nice, meanwhile, is experiencing a growing popularity, especially thanks to the Coulée Verte, new hotels, and the establishment of high-quality traders. These developments increase the attractiveness of the district to foreign investors.
The last few weeks have also been marked by two major international events that have greatly boosted the real estate market, both nationally and regionally: the Paris 2024 Olympic Games and the arrival of the Tour de France in Nice. These events have put our country and the French Riviera in particular in the spotlight. The media focus and influx of visitors boosted real estate demand, attracting investors eager to take advantage of the region’s economic boom and increased visibility. This exceptional context has helped to strengthen the attractiveness of the Côte d'Azur, confirming its status as a destination of choice for real estate investors.
Finally, I hope that the new government will put in place supportive legislation to support the market for the new, which is really needed. Especially since the French like to invest in stone. It is imperative to restore confidence in our investors and take strong measures to support our donors.
This includes lower taxes on land income, assistance for renovation work-especially insulation and heating-and a reduction in the time needed to evict squatters and non-performing payers. Such initiatives would be essential to bring the stock needed for the rental market, thus ensuring the sustainability and vitality of our real estate sector.
