Contrast in Real Estate: Paris Declining, French Riviera Rising
DAMA Blog
Unlike Paris, the real estate market on the French Riviera continues its upward trend.
Evolution of housing prices in France
While the National Federation of Real Estate (FNAIM) paints a grim picture for the Parisian market, with a decrease of nearly 6% in prices in 2023, the French Riviera seems to resist this downward trend.
Average prices per square meter in France and variations over 12 months
According to the annual report of the FNAIM, real estate prices in Paris dropped by 5.7% over the past year. This decline then spread to major cities, resulting in a general depreciation of values and impacting transaction volumes. Loïc Cantin, president of the FNAIM, emphasized that 2023 concluded with a historic decline in sales and prices, exacerbated by persistent inflation.
Evolution of sales and rental prices according to cities
Unlike the Parisian real estate market, the French Riviera displays remarkable resilience, maintaining an upward trend. This disparity can be attributed to several factors.
Firstly, the sustained demand for luxury properties and second homes on the French Riviera contributes to maintaining both demand and prices in this coveted region. National and international investors continue to seek real estate in renowned tourist destinations like Nice, Cannes, and Saint-Tropez, thus stimulating the local market.
Moreover, the exceptional quality of life offered by the French Riviera, with its Mediterranean climate, picturesque landscapes, and high-end leisure infrastructure, continues to attract potential buyers. This increased attractiveness helps sustain demand for real estate in the region, despite broader economic fluctuations.
Finally, local urban development and land use policies can also play a role in the stability of the real estate market on the French Riviera. Initiatives aimed at promoting investment in residential and commercial real estate, as well as measures to preserve the region's unique character and appeal, can support the continued growth of the local real estate market.
Overall, while Paris faces challenging times in the real estate market, the French Riviera continues to shine thanks to its sustained demand, tourist appeal, and strategic urban development policies.
Moreover, the exceptional quality of life offered by the French Riviera, with its Mediterranean climate, picturesque landscapes, and high-end leisure infrastructure, continues to attract potential buyers. This increased attractiveness helps sustain demand for real estate in the region, despite broader economic fluctuations.
Finally, local urban development and land use policies can also play a role in the stability of the real estate market on the French Riviera. Initiatives aimed at promoting investment in residential and commercial real estate, as well as measures to preserve the region's unique character and appeal, can support the continued growth of the local real estate market.
Overall, while Paris faces challenging times in the real estate market, the French Riviera continues to shine thanks to its sustained demand, tourist appeal, and strategic urban development policies.