The real estate market in the Côte d’Azur is unique. The wealthiest people buy their castles, estates and imposing villas here to enjoy life. Every year we welcome buyers from all over the world; they have beautiful villas in Florida, Munich, and Cape Town or a romantic canal house in Amsterdam. Many buyers are entrepreneurs with a broad view of the world and extensive travel experience. But a second home in the South of France is the ultimate dream come true for many.
And not only as a holiday home, but the South of France is also the perfect location to slowly stop working. Thanks to the Corona lockdowns, working from home became acceptable for everyone, so the place for a Teams meeting no longer matters. And if a face-to-face meeting is spontaneously organized at the office with all staff members? The Nice airport offers daily flights to all major cities, so a physical encounter at the office is quickly arranged. It is the life of a sémigré; you are already at the place where you want to retire.
Market value when buying a property on the French Riviera
Foreign real estate buyers have almost the same arguments for investing in the Cote d’Azur: ‘We live beautifully, but the French Lifestyle: The Art Of Enjoyment, that ‘joie de vivre’ is, of course, only possible here. In the South of France, we find everything within an hour: the most beautiful golf courses, the best restaurants, the largest marinas, wonderful sandy beaches, hip clubs, ski slopes and even the weekly market in Italy.
It all fits nicely together, and that makes the region one of a kind. Plus, everything is surrounded by beautifully maintained villas, lots of nature and a good infrastructure with safety and care. Nobody cares about the situation in the world or 15% inflation. The French Riviera bubble is filled with champagne, beach, sea and sun.
How not to buy a property on the French Riviera
Buying a house in the South of France is also a stable investment. Whatever others may claim and doom and gloom, the housing market is always in demand, and the supply remains limited because we are between the sea and the mountains. Forced sales of real estate are almost non-existent. Homeowners in the higher price range are wealthy enough to absorb a hit from inflation, and no one sells the home below market price. Unless there is an accident or a divorce.
Because every home on the Cote d’Azur pays off well, the property value continues to rise steadily without unusual peaks or troughs. And those who take an intelligent approach rent out the villa for several weeks per year to cover the costs of the IFI and maintenance.
“But there is so much stress in the French Riviera housing market!” the faint-hearted shout. “Now you can make a great bargain deal! Or no, you have to wait!” Or. Uh. People shout something based on fear and uncertainty. The latest figures about real estate bubbles from the UBS bank show the housing market stress in the world. And indeed, in several places, there is a tense situation in terms of real estate. But that does not apply – as you can see – to the South of France.
You can invest confidently because a recession in the Cote d’Azur will never happen. Those who own a property are used to stormy weather. And those who cannot buy will always rent a villa to enjoy the South of France. Have you ever tried to rent a luxury villa in the summer months? Then you know how quickly it all sells out. And how much it costs.
A villa on the iconic Saint Jean Cap Ferrat with a purchase value of around 8 million euros easily earns the owners 120,000 euros per month during high season. Net. Specialized brokers have clients in their database who are happy to rent your home. However, the problem is that there are not many villas for sale. And that, of course, drives up the price.
What exactly is the market value?
You will find well-intentioned advice online to especially look at the public register of notaries where all sales are registered. Not everyone knows where to find this register, and the selling estate agent will not point this out to you. You can find it at the bottom of this article.
You can search up to five years back by the municipality and lot code for the sales price, and the square meters of homes sold a year ago. The data is about a year behind but is entered accurately by the notary. That gives a good idea of the sales price and surface area. But not WHAT exactly was sold.
Suppose you want to buy a house in Eze. An apartment of 180 m2 in downtown Eze has a different price per square meter than a villa with 180 m2 high on the mountain. The villa has a sea view, and there will be a different atmosphere, more peace, and less road noise. To add the two prices to get an average market price for a location seems logical, but it is not.
In a luxury domain in Eze, you will find six almost identical villas next to each other. The prices are, on average, five million euros for about 250 m2. No one sells for three million there. Or for seven. Because the unity in the street determines the value. That way, you can compare apples to apples.
Apples and pears
The value of a villa is primarily determined by its location. An estate in Cagnes sur Mer has a different value than a villa in Antibes, which is only ten minutes away. And there is also a price difference between Cogolin and Grimaud. That difference in house prices is partly due to the image of a village.
A quietly babbling town where nothing spectacular happens does not make such a village ‘top of mind’ and does not quickly bring someone to discover the area. Cannes and Nice are doing very well in that respect. Bustling activities attract people, so there are many restaurants and shops and a constant buzz on the street. People like that.
But if you prefer the hustle and bustle at a distance, you will live more discreetly, further away from the bustling life. If you go five minutes by car into the hinterland and slightly up, the view immediately becomes much more enjoyable. The train is reduced to a Märklin train track, and the highways pass behind you or are not in sight.
How to make a bid on French Riviera real estate
After a few visits, you will find the villa you will fall in love with. Congratulations! The entrance is stunning, the interior is of high quality, the pool is just in the right place, and the sea views from left to right are fantastic. You already understand a bit why the price is different. Some architects like to put a 200-year-old oak front door in a modern villa. These little gems are hard to find and make a property extra special. Or the fireplace is one of a kind, with golden chains in the open, above the fire to keep the heat. You’ll understand the price difference if you find art pieces like this.
You can make an offer if you know how to finance your future villa. A price offer without financing restrictions is an extra argument for the seller to think along with you. After all, if the bank does not approve a loan for the agreed price, the house will be put up for sale again three months later. The owner is not waiting for that.
To determine your bid amount, you can consult the notary’s register (see the link below). Suppose you want to spend three million, but prefer a little less. You are looking for a bargaining point to say that a house in the same area was sold for two million.
Your beloved dream house has 300 m2 of living space, and the asking price is three million. Another home in the neighbourhood with 350 m2 has been sold for over a million less. You think: Ha! I will offer that amount because that is the actual market value in the street. But this is not the case.
What you can’t find in the statistics is the quality of the ‘cheaper house’. A cold calculation of the sales price divided by the number of square meters does provide some insight. But maybe there is an ugly tree of the neighbour below in sight. And that tree will never go away.
Or black electricity and internet cables are hanging through the horizon. And that’s just the view that drives the price down. Municipal power boxes buzzing, 4 and 5G masts in the area, or a neglected building next to the house are also influencers on the price.
Factors that determine the price
On the inside of a villa, we find many factors that determine the price further. Is it an assortment of flavours, and do you walk on different types of floors and tiles? Is the kitchen ‘authentic’ and made for people of 160 cm? Does the basement smell damp? Is the roof covered with attractive moss? Are the doors of lower quality, and are the bathrooms fully tiled in dazzling pink, green or blue?
These are observations that we pay attention to when we visit. Of course, we like to do renovations. That is also good for negotiation. But the state of a house is never reflected in the sales price. The notary notes: “1x house of x m2 = selling price”. You can only guess why it was cheaper.
Because there is little supply, many houses are demolished on the inside a day after signing. If you stay within the dimensions of the outer walls, you can completely renovate a home without a permit, ultimately increasing its value. Swimming pools can also be replaced as long as they remain in the same place. And of the same size.
Emotional added value
Buying a house is a bit similar to buying a car. A car is basically a steel umbrella on wheels, and the entry price of a car is, on average, half lower than the advertised model. Different engines, upholstery, special paint, you know it. But a Fiat 500 is just as stuck in a traffic jam as an Audi R8. And when it rains, they both have two windshield wipers. And both have an owner who is happy with the purchase.
Fashion is also similar. A sweater at Primark has as many sleeves as a sweater from Tommy Hilfiger. However, the latter is better quality, and the shirt looks better on you. Then you are happy to spend five times as much. True?
Buying a house in seventeen seconds
Buying a villa that suits you is a quest in which you want to keep reasoning as much as possible. It is, of course, just a house with a roof, equipped with a swimming pool, a garage and a garden. However, there is a difference in quality and execution. The quality of all materials, the layout, the colours and the atmosphere ensure the right synergy. And if it’s all right, your heart rate will secretly go up.
You know that when you walk through the living room, run your hand over the kitchen island and see the sitting area by the fireplace: this is going to be your home. You take a seat on the terrace and look at the surroundings. You are sold. Now the house.
Estate agents in the South of France know that a house is sold in seventeen seconds. It’s your home. Or it’s not. That’s a feeling; call it the emotional added value that cannot be captured in cold statistics.
Our advice is simple. If you haven’t seen another home that feels so perfect, don’t be swayed by cold numbers on a register that shows the price of the neighbour’s house. That seems to be the area’s market value, but it is not. It is incomplete data. A wrong location, overdue maintenance and/or a nasty divorce are all price-determining factors that no one knows.
What you do know is your taste and what you are looking for. You buy another house, which is perfect for you and your family. Money is essential, and so is how you finance the purchase fiscally. But even more important is that you will be happy!
French notary register
https://app.dvf.etalab.gouv.fr
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