Building a villa on the Cote d’Azur yourself is, of course, a dream. But you can also end up in a nightmare if you don’t pay attention. I remember the story of a buyer who (long ago) bought a beautiful piece of land with a sea view for 300,000 euros.
After the money had been transferred, a plan was made to pour the foundations and start building. The adventure could begin when the buyer and friends arrive on the land with a trailer full of building materials. However, a farmer drove up and wondered why all those people were standing on his land.
The buyer happily waved his title deed, to which the farmer replied: ‘Yes, but that’s not right; this land has a completely different registration in the land registry.’ It turned out that the notary and the estate agent had sold a piece of land on paper. Of course, neither the notary nor the estate agent could be found anymore, and the buyer was left disillusioned.
This story dates back to when real estate was not as strictly regulated as today. Nowadays, notaries and real estate agents are strictly monitored.
Fundamentals to know before building a new villa on the Cote d’Azur
Anyone who wants to buy a piece of land must pay close attention to whether it is building land (‘terrain a batir’). And even then, you are not allowed to ‘just build a house’. Every municipality has a zoning plan, the PLU (Plan Local d’Urbanisme). The municipality can tell you precisely what you are allowed to do with that piece of land, regarding the square metres of living space and the size of the swimming pool.
You can skip this step if you buy building land with a permit (‘permis de construire’). This skips a significant administrative hurdle where an architect has translated the maximum possibilities of the PLU into a building plan.
Building style depends on the environment
If the design of the building plan and the style of the house do not appeal to you, there is little you can do about it. It is possible to request a modification to turn a modern villa into a Provencal villa or vice versa, but there is no guarantee that this will be honoured. You will mainly lose a lot of time and money. So look mainly at the villa’s style proposed with the building permit.
In certain areas, such as Cap d’Antibes or Saint Jean Cap Ferrat, many ambitious architects have run away in tears because their beautiful plans were swept off the table. Every new construction must be as inconspicuous as possible and fit in well with the surroundings.
Terrain determines the costs
If you want the best view, building high on a rock is best. But then there are extra costs for the foundation. If you create a home by the sea, you must consider the sea’s power and the ground that also constantly feels the pressure of the Alps. For example, a good geological survey by ‘Experts Batiments’ is vital for a strong construction.
It is helpful if an old house is on the site where you want to build the new villa. This ensures the foundation has done its job for the past hundred years. It also saves you tens of thousands of euros in geological research, land excavation, and foundation pouring.
An additional advantage of demolishing an old house and building something new is that the address for all utilities already exists.
Construction costs
The Cote d’Azur is one of the most expensive areas in France. The land, building materials and craftsmen are probably more costly than you are used to. However, we advise you to hire local construction companies. It is a small world, and if you employ local people, there is a greater chance that the municipality will give your villa the ‘conformité’ stamp after it is completed. With ‘conformité’, your villa officially complies with all parts of the permit. This is important if you ever want to sell the villa.
Energy efficient
A professional construction company will ensure that your home meets the latest requirements for
energy efficiency, as prescribed by the French RT2012 and RE2020 standards. You can install a heat pump or solar panels in consultation with the builder.
A professional construction company gives you a ten-year guarantee on the construction. If you are building to sell afterwards, you can use the VEFA (Vente en état futur d’achèvement) rules, meaning the new buyer only pays 2.5% in notary fees and transfer tax.
Building as an investment
As a builder, you often make a nice profit. For example, the unwritten rule in the Gulf of Saint Tropez is that 2 + 2 = 6. This means you buy land for 2 million, build for 2 million, and the property is worth at least 6 million. There is hardly a better way to make money.
If you invest in advance with a real estate management holding, the SCI (Société Civile Immobilière), you can use the investment costs to reduce the profit tax. With the capital in the SCI, you can invest in the next project. Would you like to know more about all the building blocks? Contact us for a solid start.
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