Real estate market

This survey of the luxury real estate market on the French Riviera has been conducted by studying almost 20.000 property sales in Alpes Maritimes (06) and Var (83).

In the Alpes Maritimes, 25 cities have been studied in detail, representing 76% of the market size and 89% of the largest properties.

In the Var, the survey has been conducted in detail on 15 different cities, representing 31% of the market size and 57% of the largest properties, but representing most of the luxury market, the east part of the department and hinterland areas being far a different market.

Number of properties

In the Alpes Maritimes, Grasse appears as the most active location for villas below 200sqm while Mougins is the most active for villas over 200sqm.

In the Var, Ste-Maxime (which also includes Les Issambres and Plan de la Tour) is the far most active location in every range of property size.

The number of property sales (with an average of 2,5 announces for each property) compared to the number of properties in every city keeps very low, more especially in the Var, increasing the demand/offer ratio, which is a potential price rising factor.

However, the percentage of properties offered for sale is much higher (more than twice the average) in Mougins and Ste-Maxime

As well, despite St-Paul hosts a relatively small number of houses, there is a large number of property sales.

Increasing competition among sellers, this may drive prices to lower in those cities.

Highest prices

Unsurprisingly, the most expensive locations are Villefranche/St-Jean Cap Ferrat in the Alpes Maritimes, and St-Tropez/Ramatuelle in the Var.

Both are reaching roughly the same price/m2 level, but the medium price is twice smaller for the Var fashioned cities as a matter of larger diversity in sizes and prices.

Furthermore, some transactions outside publicly listed prices are running at even a higher level. The press has reported the sale of Villa Leopolda in Villefranche for an amount in between 300 and 500M€.

Outside Villefranche/St-Jean Cap Ferrat and St-Tropez/Ramatuelle, other locations close from Monaco, the Cap d’Antibes, Cannes and around the Gulf of St-Tropez are locations with the highest medium price and price/m2.

However, while the prices for the largest villas can reach the sky on some locations, most of the villas below 250sqm are keeping globally in the same range of price across the region.

Lowest prices

Unsurprisingly hinterland cities appear globally with lower price compared to cities on the coast, both in the Alpes Maritimes and the Var.

In the Alpes Maritimes Cagnes sur Mer, as less a fashionded city, is quite an exception, keeping much below the average price in the region for small to medium size villas, and even lower than many hinterland locations.

In the Var, cities close from the coast, but ouside St-Tropez area are keeping at lower price levels. However the gap is narrowing on the largest villas.

Prices progression

Over the last ten years, real estate prices have more than doubled in France, with even an higher progression on the French Riviera.

However the progression has been slightly different in the Alpes Maritimes and the Var.

In the Var, market prices have started to increase more rapidly than the France average from years 2000-2001. From 2005, they have started to follow the national progression.

In the Alpes Maritimes, the price have followed the national progression up to 2006, before starting to increase more rapidly, and reducing the difference with prices progression in the Var.

Looking at year-to-year progression over the last 5 years globally in the region, the annual progression rate keeps at a high level, but is reducing.

The annual growth rate has started to decrease, first in the Var and Alpes Maritimes in 2004, while generally in France in 2006.

However, while the Var is roughly on the same rate than France, the Alpes Maritimes have kept the same progression rate over the last 2 years, so may fill the gap with the progression in the Var over the last ten years.

Prices by sqm

Only 17 cities in Alpes Maritimes and 13 in Var have an average price/m2 above the respective department average.

Average prices/m2 are keeping a bit smaller in the Var compared to the Alpes Maritimes, both for every cities and most expensive cities, which difference may increase with current price progression rates.

As well medium prices are lower in the Var, but, with exception of the lagest villas, medium prices are higher in the most expensive locations in the Var compared to the most expensive locations in the Alpes Maritimes.

With a shortage in the offer and a growing demand especially on large luxury villas, Villefranche/St-Jean Cap Ferrat keeps a high price/m2 progression rate.

In other most expensive locations, location by location, the price per sqm are globally keeping unchanged, meaning the remaining growth in the department is mostly driven by a few location and less expensive hinterland areas.

Even some hinterland locations which had reached the highest price levels such as Grasse or Roquefort Les Pins have started to decrease in price.

However, it is to be noted that, with only a few dozens of property sales, the average price in some locations can just evolve due to a few luxury properties entering or exiting the market.

Sources : INSEE, Se Loger, Open Media, Aypioss - August 2008
Qty = number of sales, in average 2-3 times the number of villas for sale
Price = sales price, including real estate agent commission, does not reflect transaction negotiation