LanguagePrices of property in seaside resorts in France
The price of property in the popular seaside resorts in France has generally been on the increase in the past year much like the rest of France. In the past year prices across the country have risen by an average of 3.1%. The graph below shows how property prices have moved in France since 1996. As you can see prices in general have steadily increased since 2016.
For new property in France the picture has been much more consistent with very healthy growth since 2006 showing no signs of falling even during the financial crash of 2008 and the lull between 2012 and 2015 which impacted the old property market. New property is a consistently strong performer in France as the French tend to prefer buying new rather than old. This is not only because new properties are more efficient and have a modern fresh look but also because they come with a 10 year build guarantee and reduced notaire fees of typically 3% rather than 8%.
The seaside property market varies fairly significantly from place to place with some markets performing very strongly while others falling slightly. The agglomeration around Royan is top of the performers with a 7.9% increase in the last year while at the opposite end of the scale the more typical buying location for Brits of Saint Raphael not faring so well recording a loss of 3.4%. Old favourites like Nice and Cannes were also fairly unflattering at 3.1% and -0.5% respectively.
In the below table you will see a list of 10 of the most popular seaside resorts in France with their respective price increases and a property currently for sale in each area. One of the main reasons the likes of Marseillan and Royan are doing well compared to other areas is that they are very popular with the French and do not rely so much on international buyers who have been thinner on the ground in the last few years. The lower international demand is down to two main reasons: for the British this is due to Brexit but for the international community in general down to global economic and political uncertainty. This goes for rentals as well as sales.
|
Location |
Price change last year |
Price change last 3 months |
Suggested residence |
|
Royan |
+7.9% |
+2.5% |
|
|
Nice |
+3.1% |
+1.3% |
|
|
Sete |
+1.2% |
-1% |
|
|
Marseillan |
+7.7% |
+6.6% |
|
|
Aigues Mortes |
2.5% |
+9% |
|
|
Beausoleil |
+0.5% |
-1.2% |
|
|
La Londe Les Maures |
+1.5% |
-0.6% |
|
|
Cannes |
-0.5% |
+0.4% |
|
|
Hyeres |
+3.1% |
+1.8% |
|
|
Saint Raphael |
-3.4% |
+0.8% |
Based on prices between 31/03/17 and 30/03/18 (Source: notaires de France)
Rental yields are also typically better in less expensive locations such as Royan or Marseillan. This is because rental prices per week are only slightly less in the likes of Royan and Marseillan compared to Nice or Cannes for example but since property purchase prices on the Cote d’Azur are typically double those of Royan or Marseillan the percentage yield is considerably lower. For short term weekly lets a property on the Cote d’Azur will typically earn a rental yield of around 4% before costs while a property in Marseillan or Royan is closer to 7%.
So if you are considering buying a seaside apartment or villa as a second home or investment consider the areas which are popular with the French and not just the international community. You may be able to get significantly more for your money and in turn see your property rise in value faster but also mitigate the uncertainty that is currently related to the international market.
