The new French Riviera residential market report from international estate agency Savills suggests that the south of France, which includes some of the most sought-after home destinations in the world, is poised to enjoy a buoyant property market over the coming years.
The Riviera has experienced a similar fate to France as a whole, as prices and sales have on average fallen over the past three years, but it is still a magnet for international buyers, with a higher-than-average proportion of second and holiday homes.
The report explains that the nature of these properties means prices are unlikely to suffer dramatically in coming years: “Although transaction numbers are down, purchasers of the region’s best properties tend to hold for long periods, with low gearing as these homes are viewed as a store of wealth, so forced sales are rare and, as a consequence, there is no mechanism for prices to fall substantially.”
It goes on to identify what sets the region apart from others in the global property market: “Ultra-prime markets in world cities are cooling following a period of sustained price rises. Investors are now beginning to peel away from expensive city centres and seeking alternatives in other cities and leisure hotspots. The Riviera is poised to benefit from this trend and it is also regarded as a safe haven.”
