Affluent Americans with the ability to telecommute are buying luxury homes on the French Riviera, sending real estate prices in the region soaring.< /p>
Prices of homes worth more than €15m on France's south-east coast rose by 15-20% over the period 2019-2024, outstripping London's 13% rise over the same period, brokerage data shows Beauchamp Estates.
Since the pandemic, international buyers, especially from the US and the Middle East, have started looking for a second home where they can work remotely. Demand for such super-premium housing is unlikely to be undermined by the political turmoil engulfing France following the recent snap elections.
Foreigners are looking for homes that can serve as a long-term investment in wealth centers such as the French Riviera, Dubai and Miami, where they can live for long periods of the year.
The boom in the Cote d'Azur property market contrasts with the downturn that some other luxury property markets have experienced in the recent past. Higher borrowing costs and fears of a recession have depressed some luxury housing markets in the US and Europe. Luxury property prices, defined as the top 5% of the market, fell by more than 2% in New York and London in the first quarter of 2024 compared with the same period a year ago, according to property consultancy Knight Frank.
However, French Riviera resorts including Cap Ferrat, St Tropez and Cap d'Antibes are sought after by foreign workers on a hybrid schedule, with more than 70,000 coastal properties already owned by foreign second home buyers .
The survey shows that wealthy Americans tend to be attracted to homes in Cap Ferrat and St Tropez, while buyers from the Middle East look for ready-made properties near the sea.
„Foreign investors are spending a lot more time doing transactions these days,” said Julien Magitteri, a private wealth management consultant and founding partner of Barnes Family Office by Come. “We had an atmosphere of trust and stability. After a few days everything was destroyed and little can be seen in the future“.
Nevertheless, brokers along the Mediterranean coast remain confident that prices will continue to rise on the French Riviera.
„Buyer attitudes have changed – people want homes where they can spend weekends and longer periods,” said Alex Balkin, chief executive of brokerage Savills on the French Riviera.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE