This article was previously published in Dutch printmagazine Maison en France, June 2019
Real estate advisor Ab Kuijer shines his light on the market for new-build properties on the Côte d’Azur, the region where he has worked for years.
“Ab, I want you to make a great deal for me, because I pay cash.” I hear this request regularly. Unfortunately, I have to disappoint the enthusiastic potential buyer of a new apartment in advance. Even though it is sometimes an apartment of almost two million, the market for new-build properties on the Côte d’Azur is by no means an easy deal making business.
Project developers know from experience that new homes are always sold for the asking price and that they don’t have to do anything extra. There are of course exceptions; for example, we have still a two-bedroom apartment in Cannes Palm Beach. The price? 368,000 euros with a garden and a view on a wall. But, you will receive the garage of 35,000 euros as a gift.
Delay
When there is a lot of enthusiasm for a project, such as two years ago in Theoule-sur-Mer, right on the sea front, the price is cheerfully adjusted up after a few months. It is the simple result when there’s a lot of demand and little supply. It is therefore important to be among the first to have the best choice, the best price and who knows, you may be able to sell the apartment at a profit before it is delivered. New construction as an investment is something that many buyers have in mind when purchasing. Whoever can choose first and has reserved an apartment with a 5% deposit, must be patient.
The land is only purchased by the project developer when 40% is sold on paper. Then “Circus immobilier”arrives in town; neighbors wake up, consultation evenings follow, excavators stop and eventually lawyers have to talk to each other to find a financial compromise. Delivery can therefore take place just a year later.
Buyers get worried and look again at the brochure; wasit all a dream? Fortunately, construction with a delivery guarantee always starts because the municipality has already given its permission. The delay in construction is typically French; no one is waiting for noise from a construction site, but can use some extra income.
Rising prices
Recent statistics show that the price of new construction on the Côte d’Azur has risen; in Nice even with more than 6%, according to Marc Ezrati of Les Chasseurs Immo. Because land is becoming scarcer and demand is constantly rising, the price for new construction is expected to rise further. You are advised not to wait too long with your sunny investment; the expensive times are coming again. I would say: “Come and see, come and see!
SOLD IN 2018
Existing properties: 13,279 (increase of 5% compared to 2017)
Newly built homes 4,882 (an increase of 7% compared to 2017) Source: cote-azur.cci.fr
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