Luxury Real Estate Market on the French Riviera: Trends and Outlook

The luxury real estate market on the French Riviera continues to attract a discerning international clientele seeking exceptional properties. But how has it evolved since the pandemic? What are the current trends and opportunities to seize?

To answer these questions, discover an exclusive interview with Edward de Mallet Morgan, Head of Private Office at Douglas Elliman France. Drawing on his expertise, he shares his analysis of market dynamics, buyer preferences, and the outlook for the coming months.

Gain his expert insight into price trends, market segmentation, and the most sought-after properties.

How has the Côte d’Azur prestige real estate market performed since the pandemic?

The Côte d’Azur’s prestige real estate market has experienced notable shifts since the pandemic.
Post-pandemic, the luxury property market on the Côte d’Azur saw a big surge in demand, leading to price increases. However, over recent years, prices fell back to 2019 levels and the market softened. The only exception to this rule being some of the turn-key properties at the very top end of the market, with several notable sales taking place to American billionaires.
The supply of properties remains limited, but is gradually increasing, along with demand which had softened due to previous rising interest rates and economic uncertainties.

How is the prestige real estate market segmented?

The market for us is segmented primarily into two distinct sectors. The Prime Market, typically ranging from €2 million to €5 million, with French buyers accounting for about half of all sales. The Super Prime Market, properties exceeding €15 million are predominantly acquired by international buyers, including individuals from the Middle East, Eastern and Western Europe, UK USA and Scandinavia.

Is it a mobile market with regular new opportunities?

There are a more properties coming into the market but there is still a lot of stock that has been for sale for some time. Where sellers are discretionary and don’t need to sell, they are just waiting fo the market to improve. Everything sells at the right price, but the most liquid properties are those which are totally rennovated and turn key and competitively priced in the best areas, if not waterfront. Prices have stabalised and we are quietly confident for good sales activity this summer.

What are the most sought-after property types?

As mentioned above, most people do not want to do works to a property, but depending on the location and the area, in some cases, particularly where people are buying to live, rather than holiday homes, buyers are happy to do a project to prefect a home for the family for many years to come. Brand new or recently renovated are in the highest demand.

Buyers show varied preferences, including:

• Renovated Villas: Modern amenities and turnkey conditions are highly desirable.
• Historic Properties: Authentic Provençal farmhouses and bastides attract those seeking traditional charm.
• New Developments: Contemporary designs with sustainable features appeal to a segment of buyers.

Key factors enhancing property value include:

• Location: Proximity to the coast, vibrant towns, and amenities, flat land and a great sea view.
• Size and Privacy: Larger estates offering seclusion are in demand.
• Amenities: Features like heated pools, modern kitchens, and climate control systems add significant value.
• Views: Panoramic sea views or scenic landscapes are highly prized.

Buyer Intentions: Primary Residence, Second Home, or Investment

The Côte d’Azur attracts a diverse clientele:

• Second Homes: A significant portion of buyers seek vacation residences.
• Primary Residences: Some, particularly international families, are relocating permanently, drawn by the lifestyle and amenities and good private schools.
• Investments: The region’s enduring appeal makes it attractive for property investments, with some buyers focusing on rental income or long-term value appreciation. Cannes, given its regular festivals and events gives very high potential to maximise rental income.

Proportion of International Buyers

International buyers play a significant role in the market:

• High-End Segment: Over 60% of properties exceeding €5 million are purchased by international clients. At the extreme top end of the market, 100% of buyers are from overseas with a very large proportion of buyers from America.
• Diverse Origins: Buyers come mainly from Northern and Western Europe, the Middle East, Asia, and North America.

Market Outlook: Short, Medium, and Long Term

• Short Term: The market is stabilizing, with prices holding steady after previous increases. There are already some larger deals being agreed for properties that have otherwise been for sale for a few years.
• Medium Term: Sustained international interest and limited supply are expected to support property values.
• Long Term: Irrespective of French Politics, the Côte d’Azur is likely to remain a coveted destination, with its unique blend of culture, climate, and luxury continuing to attract discerning buyers.

In summary, the Côte d’Azur’s prestige real estate market has shown resilience and adaptability post-pandemic, with a balanced outlook supported by enduring demand and controlled supply.

Please contact Edward de Mallet Morgan for more information.