Real estate market trends: a time for strategic decisions and accurate pricing

After several years shaped by significant changes in financing conditions and a slowdown in transactions, the real estate market is gradually regaining momentum. Buyers are returning, projects are being revived and sellers are adjusting their strategies. Yet this recovery does not signal a return to the dynamics of the market’s most buoyant years.

Instead, real estate appears to be entering a new, more selective and rational cycle, in which buyers, sellers and investors are taking greater care to assess the true value of a property before committing.

In luxury real estate, as in the wider residential market, this is increasingly a time for informed decisions and strategic choices.

A real estate market gradually regaining momentum

Signs of renewed activity are becoming more apparent: property searches are picking up, viewings are increasing and projects that had previously been postponed are returning to the market.

Greater stability in financing conditions is helping restore visibility. However, the habits developed over the past few years remain firmly in place. Buyers are comparing opportunities more carefully, examining properties and their surroundings in greater detail, and assessing asking prices against the actual quality and attributes of each asset.

The market is therefore not necessarily characterised by a wait and see approach. It is simply operating differently.

Decisions are more informed, negotiations more accepted and the concept of value has once again become central.

Buyers are back, but expectations are higher

Even in the luxury property market, where buyers may be less dependent on bank financing, purchasers are paying particular attention to the overall coherence of an acquisition.

Location, architectural quality, views, outdoor spaces, amenities and rarity naturally remain decisive. But these attributes alone no longer automatically justify any asking price.

International buyers also have access to a broad range of destinations and can compare opportunities across different markets. On the French Riviera, a property is therefore not simply competing with neighbouring homes. It may form part of a much broader international wealth and lifestyle decision.

Cannes, Saint Tropez, Saint Jean Cap Ferrat, Mougins and the Nice coastline must therefore continue to demonstrate their ability to combine quality of life, property scarcity and long term value.

This does not mean that buyers have abandoned emotional purchases. The appeal of an exceptional property remains fundamental in luxury real estate. However, that emotional response is increasingly accompanied by a detailed assessment of price, quality and future potential.

For sellers, accurate pricing is once again essential

The shift is perhaps even more noticeable among property owners.

Market references from years of strong growth can still shape sellers’ expectations. Yet in a more selective environment, an overly ambitious valuation can have a direct impact on the success of a sale.

A property marketed significantly above its market value may attract attention without generating a genuine decision. Over time, it can lose the initial momentum associated with a new listing and eventually require a more substantial price adjustment.

By contrast, a coherent asking price from the outset helps attract genuinely active buyers, generate qualified viewings and place the seller in a stronger negotiating position.

Valuation has therefore regained its full strategic importance. It cannot simply be reduced to a price per square metre.

In luxury real estate, value is determined by a combination of criteria that can be difficult to standardise: precise location, quality of the view, exposure, architecture, condition, land, amenities, privacy, renovation or development potential, as well as the scarcity of comparable properties recently brought to market.

Two properties located only a few hundred metres apart can consequently command very different values.

Marketing provides a real time indicator of the market

In a more demanding environment, the first few weeks of marketing provide particularly valuable information.

The number of enquiries, quality of contacts, conversion from online interest to physical viewings, feedback from potential buyers and level of initial offers can quickly reveal whether the property, its positioning and current market expectations are aligned.

A high number of online views accompanied by few enquiries may indicate a gap between the property’s presentation and its asking price.

Regular viewings without offers may suggest that the property is appealing, but that one aspect of the proposition is preventing buyers from moving forward.

Conversely, several serious enquiries within a short period can confirm that the chosen positioning is appropriate.

Marketing is therefore no longer simply about giving a property maximum exposure. It also provides an opportunity to understand how the market is responding and, when necessary, adapt the strategy accordingly.

Investors are focusing on long term asset quality

Investors are also adopting a more selective approach.

The prospect of rapid capital appreciation alone may no longer be sufficient to justify an acquisition. The intrinsic quality of the asset, its location, future liquidity and ability to remain desirable throughout different market cycles are becoming increasingly important.

This is particularly evident in luxury real estate.

On the French Riviera, certain properties meet structural criteria of scarcity: a frontline address, an exceptional sea view, direct access to the Mediterranean, extensive grounds in an area where available land is limited, remarkable architecture or a particularly sought after location.

In these situations, the analysis goes beyond immediate returns. The acquisition forms part of a long term wealth strategy, potentially combining personal use, asset diversification and transmission to future generations.

Sell, hold or enhance: new wealth management decisions

Selling is no longer necessarily the automatic choice for property owners.

Faced with changing market conditions, some owners choose to hold onto their property, while others consider renovations to enhance its value or decide to adjust their asking price in order to accelerate a transaction.

These decisions naturally depend on individual circumstances: a future acquisition, inheritance, wealth restructuring, a change of primary residence or the need to release capital. Within the luxury segment, they may also involve assets that have remained within the same family for generations or second homes with significant personal and emotional value.

Property decisions therefore increasingly involve balancing use, value, timing and legacy.

On the French Riviera, scarcity remains a key factor

Across the most sought after markets of the French Riviera, this more rational approach does not diminish the value of genuinely exceptional properties.

The Riviera coastline remains characterised by a structural constraint: the most desirable locations are, by definition, limited and difficult to replicate.

A frontline villa in Saint Jean Cap Ferrat, a property with direct sea access in the Gulf of Saint Tropez, an apartment with an exceptional view on the Croisette or a substantial estate in the hills above Cannes all follow different market dynamics from those of more readily comparable properties.

Scarcity, however, does not remove the need for careful pricing. On the contrary, it makes expert positioning even more important, as comparable transactions are less frequent and individual property characteristics can have a significant impact on value.

Towards a more rational real estate market in 2026

The trend emerging in 2026 is therefore neither one of market euphoria nor stagnation.

It is better described as a period of normalisation.

Buyers are returning, but they are more selective. Sellers need to take current market conditions into account. Investors are prioritising assets capable of maintaining their appeal over time.

This evolution may extend certain decision making processes, but it can also lead to more coherent transactions and better structured wealth strategies.

In this environment, an in depth understanding of individual micro markets has become essential. Value is no longer simply stated. It must be demonstrated.

Valuing or selling a property on the French Riviera

From Saint Tropez to Saint Jean Cap Ferrat, including Cannes, Mougins, Nice and the Riviera’s most sought after locations, Côte d’Azur Sotheby’s International Realty advises property owners, buyers and investors throughout their real estate projects.

Combining detailed knowledge of local markets with the international reach of the Sotheby’s International Realty network, our teams provide the market insight required to determine the appropriate positioning of a property and define a tailored sales strategy.

Would you like to understand the current value of your property or discuss a real estate project on the French Riviera? Contact Côte d’Azur Sotheby’s International Realty for confidential and personalised advice.