The budget for real estate transactions on the French Riviera has shrunk by 30-50%
Over the past year (June to June), prices on the French Riviera have dropped by an average of 2-2.5%. In Saint-Tropez the decline was 1.2%, in Nice – 3.7%, in Antibes – 5.3%, according to data from the overseas real estate broker Tranio. At the same time, some properties are listed at prices roughly 20% above market value, so bargaining is possible, notes Yulia Kozhevnikova, a leading expert at the company.
Price declines and the weakening euro have sparked interest from foreigners with savings in US dollars. Cap-d'Ail, Beausoleil, and Roquebrune-Cap-Martin, which border Monaco, are particularly benefiting. They are attracting part of the demand from the neighboring principality, where buyers from Russia are currently very active. Premium real estate on the French Riviera is significantly cheaper, although there are no tax benefits here. Cities neighboring Monaco are popular among buyers who want quick access to the principality at a lower price, Savills experts note.
About a third of all real estate buyers on the French Riviera are Britons, and another roughly 30% are Russians. Last year, demand from our compatriots decreased somewhat, but it is no longer falling, and for relatively budget options it is even growing.
Back in 2010-2013, about 50% of inquiries fell within a budget of 5-10 million euros. About 10% were for budgets over 10 million, 15% up to 2 million, and the remaining 25% considered budgets ranging from 2-5 million euros. Now about 70% of inquiries for purchasing real estate on the French Riviera are for budgets up to 2 million euros.
If before 2008 real estate deals worth 3-6 million euros were considered normal, today one simply does not see that. 'In Nice, where four years ago each luxury property listed for sale had at least two or three buyers, today sometimes it is hard to find even one,' says Igor Indriksons, managing real estate investments and founder of Indriksons.ru. Interest in affordable housing, on the contrary, is gradually growing – since the beginning of 2015 demand has increased by approximately 7-10%.
Analysts at Tranio report a 17% increase in requests for more affordable options compared to 2014. According to the broker, the average budget has shrunk from 890,000 euros to 498,000. As a year ago, apartments are more often of interest than villas and cottages. Additionally, in 2015 inquiries for commercial real estate appeared, although a year ago there was almost no interest. As Gazeta.ru notes, buyers now seek to preserve funds by investing in reliable markets, and France is one of them.