French Riviera Market Report 2023

FRENCH RIVIERA MARKET REPORT FOR 2023

INTRODUCTION

The first six months of 2023 remained lively and could be viewed as an extension of the euphoria experienced during the "covid years." However, the latter half of the year saw a significant decrease in the number of transactions, particularly in the sale of new builds (VEFA). In the French Riviera (Alpes-Maritimes), there was a yearon-year decline of 35% in new build sales and approximately 30% in existing properties. While this reflects a general trend across France, the figures vary greatly from one region to another. Nationwide, the total number of transactions in 2023 amounted to approximately 865,000, a notable decrease compared to the record high of 1,150,000 sales in the preceding year.

Prices are exhibiting varying trends across different cities within our region (please refer to the attached tables for details). Specifically, prices of new builds increased by 5.2%, while existing property prices rose by 6.6%. These figures suggest a sustained demand for properties on the French Riviera.

A ten year perspective

Taking a ten-year perspective provides a more reassuring outlook amidst concerns raised by journalists and real estate agents regarding the recent decline in sales volume. When analyzing the evolution of sales and prices over this period:

Existing property prices experienced a steady increase of approximately 30% between 2014 and 2023, while the number of sales declined by around 6% compared to the average sales volume. However, fluctuations of around 6% are within the realm of normalcy and should not be cause for significant concern.

In contrast, the situation for new builds presents a different narrative. Despite a substantial 24% increase in prices over the same period, sales volume has plummeted, currently resting at 47% below the average. This trend is not unique to our region but reflects a broader crisis for new builds across France.

Several factors contribute to this crisis, including higher costs of land and construction materials, increased administrative constraints, and reduced purchasing power resulting from higher interest rates. These challenges underscore the need for strategic interventions to address the underlying issues and revitalize the market for new builds.

SUMMARY

The rush to buy properties experienced during the peak of the pandemic has slowed, but we anticipate the market gradually returning to a more typical sales volume in 2024. However, a new factor is emerging: energy classification. Traditionally, real estate agents relied on the "4 Ds"; Debt, Divorce, Death, and “Demenagement”(movingtoanotherarea)asprimaryreasonsfor sales and to maintain sales volume. Now, a fifth D is emerging –properties with low energy classification (DPE). Owners facing this issuemaystruggletorentouttheirpropertiesoraffordnecessary renovations, prompting them to sell. This addition to the market dynamics may increase sales numbers, though likely without significantimpactonprices.

ThestatisticsinthisreportprimarilyfocusonAlpes-Maritimes,but the trends observed extend to the neighboring department, Var. Our analysis relies heavily on data from the Real Estate ObservatoryoftheChamberofCommerceofNice,supplemented bynationalstatisticsfromtheNotaryAssociation.

For those interested, an English version of the 2023 market analysis conducted by FNAIM, the French Association of Realtors, isavailableuponrequest.

HaraldStarke

Harald Starke, president Riviera Keys

NUMBER OF TRANSACTIONS

IN NEW BUILD PROPERTIES

Riviera Keys Market Report 2023

Evolution from Q4 2022 to Q4 2023 Only apartments are included in the statistics in Alpes-Maritimes.

Source : Observatoire de l’immobilier des Alpes-Maritimes

PRICES OF NEW BUILD APARTMENTS

Riviera Keys Market Report 2023

Evolution from Q4 2022 to Q4 2023 Only apartments are included in the statistics in Alpes-Maritimes.

Source : Observatoire de l’immobilier des Alpes-Maritimes

NUMBER OF TRANSACTIONS

IN EXISTING PROPERTIES

Riviera Keys Market Report 2023

Evolution from Q4 2022 to Q4 2023 Only apartments are included in the statistics in Alpes-Maritimes.

Source : Observatoire de l’immobilier des Alpes-Maritimes

PRICES OF EXISTING PROPERTIES

Riviera Keys Market Report 2023

Evolution from Q4 2022 to Q4 2023 Only apartments are included in the statistics in Alpes-Maritimes.

Source : Observatoire de l’immobilier des Alpes-Maritimes

OVER A 10-YEAR PERIOD

Evolution over a 10-year period.

OUR AGENCY

Riviera Keys, created by Harald Starke in 2004, is one of the largest Franco-Scandinavian real estate agencies on the Côte d'Azur. Our thousands of sales attest to our solid experience and excellent service to buyers and sellers.

Why Riviera Keys rather than another agency? The mentality as well as the Scandinavian working methods differentiate us from other real estate agencies, thanks to our quality follow-up and our transparent communication. All employees speak two or more languages. Our buyers or sellers, French and foreign, are our priority and we assist them throughout the acquisition or sale process. Our marketing is therefore largely oriented towards Nordic customers wishing to invest in our region. Northern European buyers are mostly serious and solvent customers, carefully preparing their acquisition, with financing established upstream. We are also part of the world-renowned network, Leading Real Estate Companies of the World, a true label of trust. Alongside transactions, we also work for buyers, as “property hunters”. Our four offices in Nice, Antibes, Cannes and Saint-Raphaël cover the entire region from Menton to Saint-Tropez, including the hinterland and part of Provence.