Investors return to the Côte d'Azur

Monaco’s expansion plans and the return of the rental investor will shape market performance.
Written By:
Kate Everett-Allen, Knight Frank
2 minutes to read

Stock levels remain a challenge for buyers across the region. Most are acting decisively when they find a property that meets their requirements due to concerns around depleted inventory.

Market liquidity is strongest in the €1 million to €2.5 million price bracket in Mougins, Valbonne and Grimaud. On the coast, the €3 million to €6 million price bracket is most active, particularly near Cannes, Cap d’Antibes and between St Tropez and Ramatuelle.

Mainland Europeans continue to comprise the bulk of international demand with Scandinavian, German and Swiss buyers possessing a large market share. Hindered by lockdowns and successive waves of Covid-19, Asian interest has yet to recover but we anticipate stronger demand in the coming months.

The Brexit ruling that sees British homeowners limited to a stay in the European Union of 90 out of every 180 days has had minimal impact on the local market. Arguably, retirees have been affected the most but the appetite from second homeowners and those looking to relocate using the residency visa route has remain unchanged.

The rental investor is returning to the French Riviera. Apartments in towns like Cannes, home to a burgeoning conference and events industry, are back in the spotlight. During the pandemic the villa market outperformed as homeowners sought more space during lockdowns. With price growth for apartments lagging, investors are eyeing a potential value opportunity as the conference industry gets back on its feet.

Monaco’s proximity has a direct influence on the French Riviera's market. With Monaco expanding its land mass by 3% via the new Mareterra project, and prices expected to reach €100,000 per sq m, the likelihood is these homeowners will seek a weekend bolthole on larger plots along the French Riviera.

The push for sustainability is filtering through to the Riviera. Ramatuelle and Cannes have both taken steps to reduce their eco-footprint by improving the sustainability of their hospitality venues.

To discuss any property requirements you may have do get in touch with the team

Photo by Denis DIMITROV on Unsplash