In recent years, luxury real estate has been going through a very difficult period. Indeed, customers have become less and less numerous and more demanding when they are present.
In spite of the bad results, which remains timid, but does exist. This is good news for luxury real estate agencies on the French Riviera.
The awakening of luxury real estate on the French Riviera.
The awakening of luxury real estate on the French Riviera
With the crisis and an uncertain situation, real estate prices have fallen dramatically in recent years. Negotiations are very hard and in order to sell one’s property, one had to make sometimes considerable efforts to revise the prices downwards.
However, as owners are less and less in a hurry to sell, probably waiting for a recovery, the situation has tended to stagnate. No French region has escaped this rule. Any luxury real estate agency on the Côte d’Azur, a very dynamic region in this respect, can confirm this market trend. The number of buyers in this niche is also decreasing, due to the unstable professional situation.
The wealthy Russian clientele, for example, has also disappeared, although it used to make it relatively easy to sell prestige properties, particularly in the south of France, which had an incomparable attractiveness in their eyes.
Demand is starting to grow again on the Côte d’Azur
There is a real demand for luxury real estate on the Côte d’Azur. The attractiveness of the seaside and lower prices are the major assets of this dynamic, but still timid.
It would seem that Northern Europeans and the French are once again turning to luxury properties in this region. France is now ranked third, behind Portugal and Spain, for its attractiveness in terms of luxury real estate.
That’s pretty good news, and it’s compounded by the confidence that seems to be building since the election of Emmanuel Macron. Add to that, available budgets that seem to be on the rise as 57% of people in this niche are looking for properties of one million five or more.
The adaptation of luxury real estate agencies on the coast
Agencies must adapt to a new demand, while taking advantage of the movement that is taking place in the field of luxury real estate. Many buyers are looking for properties between 2 and 6 million euros. They have a clear preference for villas and properties located near the city center and with a surface area of 250 and 350 m².
Agencies are recording a demand that is tending to grow. Given the fact that there are currently more properties on offer than there are in demand, potential buyers are not in a hurry, they are visiting more and more, comparing properties and taking their time to reflect.
Finally, they tend to negotiate the proposed prices. Despite all these components, real estate professionals seem to indicate a very slight increase in the number of sales of properties over ten million. In the second quarter of 2017, we note that interest in the French market rose to 44% from 14% in December 2016.
So after all, why not treat yourself to a home as a second home?