_Is it worth buying an apartment in Côte d'Azur?
International buyers are the driving force of sales in the region, with the British accounting for up to one in four prime residential purchases. Russians living in France as always prefer the Côte d'Azur. Actually, in whatever country they live, in summer many tend to meet on the French Riviera.
It is worth mentioning that, much like buyers from other countries, Russians have become more careful with money. Many are looking to rent before buying, and not just for one season. For example, families live all year round in Mougins in the South of France, as there are international school, galleries, golf clubs and top end Michelin restaurants there. We can see the similar situation in St Paul De Vence with their big artistic community. Foreigners come there all year round.
Above: A seven bedroom villa for sale in Mougins, Alpes-Maritimes, Cote D'Azur. Available through Knight Frank
In Cannes, Nice and Antibes the local market offers great rental potential at any season and historically values are lower there than in a more bourgeois Jean Cap Ferrat. A modern and elegant house, offering a swimming pool, a garden and a breathtaking view costs 2 to 5 million euros. The south of France has few contemporary buildings with serviced apartments. But developers are addressing the growing demand with new projects. One of them is the First Croisette complex that is soon to open across the Palais de Festival. It is basically London’s One Hyde Park in Cannes offering concierge, parking, gym and spa.
Above: A two bedroom apartment for sale in Cannes' First Croisette complex. Available through Knight Frank
It is considered good investment to purchase real estate for reconstruction and redecoration, as it reduces the purchase tax. The market is rich in offers so if you are willing to create a dream house, feel free to contact us. You don’t have to worry about construction and design. With many international professionals working in France right now you can get London quality in the South of France. We also have all the necessary contacts of constructors and designers that we’ll be happy to share with you.
Experts predict continuing economic and political stability in France for the next years. Which means that the region will attract global wealth. There has been an 18% growth in the number of individuals with USD 5 million+ in net assets accounts in 2016-2017 and the forecast for the next five years is 38%. For comparison, in the UK, the number of wealthy residents has dropped by 2% in the past two years, and the growth is unlikely to exceed 17% in the next five years. This allows us to view France as the future "wealth hub". And perhaps today is the time to invest in this future.
Katya Zenkovich is a Partner within Knight Frank's Global Prime offering, a specialist group of experts dedicated to transacting the world’s finest properties.