Buying property in the South of France is a dream goal for many. The year-round sunshine on the glorious Cote d’Azur is hard to beat, and the French Riviera lifestyle simply to die for.
If you’re thinking of purchasing a holiday or retirement home abroad, then buying real estate in France may well be a top consideration.
Of course, there are other reasons why you may be considering buying property in France. Perhaps you’re thinking of making an investment purchase to fund your retirement, or maybe you’re thinking about going down the buy-to-let route to boost your income.
Read more: Insider’s Guide to French Mortgages
No matter the reason, you’re probably wondering whether now is a good time to buy real estate in the South of France – and that’s why we’ve put together this blog post.
We’ll take a look at the state of property sales in France, where the hot sports are for both affordable and luxury property, and what sort of income you can expect if you decide to rent out your house.
South of France Property Market
Despite the turmoil over the past two years, the French property market has remained strong. For the five years leading up 2020 (when the trouble began), prices for properties in France were steadily growing – by an average of 5.8% across the country. As is to be expected, house sales in France slowed down throughout much of 2020. However, they soon picked up again.
(Image source: home-hunts.com)
What’s important to note here is that although prices have been steadily increasing, they’re still some 10% below their high point in 2006 – but they’re clawing their way back up the ladder. Indeed, prices are expected to continue to climb by a further 3.5% during 2022. As the market continues to benefit from low interest rates and a resilient economy bouncing back following two years of turmoil, we may see prices continue their upwards trend in the years to come.
Where to Find Luxury and Affordable French Properties in the South of France
There’s no shortage of luxury French properties along the Cote d’Azur. Prices, of course, are generally high – both due to the fact that the coast is a desirable place to live, and that the properties are, by definition, large and luxurious. Nonetheless, you may be able to barter a good deal for yourself on a top-end villa.
As reported in Iconic Riviera, very few homes in the upper tiers of the South of France property market actually sell for the asking price. “Only about 3% of villas listed for more than €3 million sell for more than €3 million,” says the report. “The vast majority of villas sold between 35% to an astonishing 85% less than the original asking price, with the average discount being around 60%.”
For more affordable properties, you’ll generally need to retreat back from the coast. Locations like Mougins, Lorgues, and Tourtou are all beautiful towns where many properties at good value for money can be reliably found.
Rental Yields
If you’re considering a buy-to-let purchase, the French Riviera is indeed worthy of your consideration. The reason is the reliable weather, which ensures visitor numbers remain strong all year around. Prime time is in the summer when temperatures are at their highest, but the sun even shines in winter on the Azure Coast, with temperatures averaging around 14 degrees centigrade at the mildest point of the year.
Long Term Rentals in France provides an example year-round rental yield that may be expected from 4-bedroom property close (25 minutes max) to the beach.
(Image source: longtermrentalsinfrance.com)
Charles Mackintosh South of France Property Surveyor
If you think now is a good time to buy property in the South of France, the first step is finding one that meets your requirements. Charles Mackintosh has over 30 years’ experience living and working in the region and can give you the guidance you need. Get in touch today.