Real estate market on the French Riviera: opportunities and outlook at the end of 2024

The French real estate market, which has seen a prolonged dip in transactions, is now experiencing a revitalization. With lower property prices and favorable credit rates, the sector is once again attracting both private buyers and investors, buoyed by recent government announcements focused on housing. These developments bring a wave of optimism that’s uplifting real estate professionals across the board.

A new momentum for the real estate sector

Under the guidance of Michel Barnier, recent public policy decisions have prioritized housing as a national focus. Key initiatives include simplifying the energy performance diagnosis (DPE) and adjusting its timeline, steps intended to gradually phase out energy-inefficient properties from the rental market. This focus is expected to energize the market for eco-friendly renovations.

The government also aims to make zero-interest loans (PTZ) more accessible to first-time buyers, including those purchasing older properties that require renovations and expanding eligibility beyond traditionally high-demand areas. Such measures could stimulate the entry-level home-buying market while promoting upgrades across the housing stock.

The impact of regulatory and fiscal adjustments

Ongoing reforms are creating more stability for investors, who are often discouraged by fluctuating tax and regulatory demands. Additionally, forecasts suggest that mortgage rates could fall to around 3% by year-end. This anticipated drop, combined with modest price reductions in some regions, is drawing many buyers back to the market, reassured by this renewed stability.

A prime time for purchases

Falling prices in several major French cities have drawn two to three times more prospective buyers compared to last spring. This trend is particularly visible in areas where prices surged sharply, such as suburban Paris, where housing prices are gradually correcting after post-COVID demand peaks.

On the French Riviera, certain real estate segments, like waterfront properties, are showing resilience in pricing. Owners in these high-demand areas often prefer to hold onto their properties or offer them as seasonal rentals. Nevertheless, this dynamic presents attractive negotiation and investment opportunities for potential buyers.

A rental market under pressure

The rental market is currently under significant strain, especially in large urban centers and coastal areas, where demand far exceeds supply. This shortage complicates the housing search for renters and highlights the urgent need for new constructions to meet the needs of a growing population.

A climate ripe for investment opportunities

With favorable market conditions, this is an ideal moment to consider a property purchase. The combination of moderated prices, declining interest rates, and new government measures creates an optimal environment for acquisitions, especially for first-time buyers and investors interested in the French Riviera. Working with an agency specialized in luxury real estate enables buyers to make well-informed choices and seize these opportunities under the best conditions.