The French Riviera fascinates (again) foreign investors12th June 2013
According to Coldwell Banker, after 6 fiscally difficult months, figures confirm that foreign investors show they are keen to invest again in the French Riviera. The company bets on luxury property market in Corsica.
Luxury Real Estate professionals are pleased to see rich foreign
investors are back. Nevertheless, figures show that it is mostly Chinese and Russians who are keeping an eye on the French market; more than the traditional European and Italian clientele.
According to Laurent Demeure, CEO of Coldwell Banker France and
Monaco, foreign investors have been reluctant to invest in France following the government declarations a year ago regarding the finance law. However, things have changed since then and foreign investors are starting to come back in France. Mr Laurent Demeure assessed he has received from his New York office a request from a Russian client who would like to invest 3 million euros in a Parisian pied-a-terre. Another Russian investor would like to buy a property in Saint Tropez. ‘We receive many requests from wealthy customers who are settled in London and who wish to buy a property in Monaco despite the very high prices in the principality’ he adds
According to Laurent Demeure, there is no doubt that France remains
a landmark destination for foreigners. Chinese millionaires have chosen the French capital as their first tourist destination because France is ‘special.
France is the symbol of prestige thanks to its wines, big hotels, luxury products, its Riviera and ski resorts. We need to capitalize on this’ he says. ‘France image has been damaged during six months but we are now back to normality
A limited drop in prices
However, Second homes market is inert in the south of France because
of a rising taxation on capital gains. ‘As a consequence, the market has been blocked and lots of investors have quit the market. Moreover, tax increase has affected automatically the prices, which has limited the decrease to just 4 or 5% in the region’. Laurent Demeure assesses the situation is anecdotal because prices have increased by 170% for the last decade and transactions have dropped between 30 and 35% in volume… It means that luxury market still resists in the French Riviera’
Corsica: the best
After Biarritz, saintes, Megeve and Neuilly sur Seine, Caldwell
Banker has opened a sub-branch in Corsica; a restricted market with around 3,000 transactions every year because of a certain building restrictions.
According to Laurent Demeure, Real Estate Market in Corsica becomes more and more qualitative. The integration of the buildings in the landscapes gets better and better thanks to a use of materials such wood, stone or rough concrete.’
Luxury Real Estate has been developing for several years and prices
remain attractive comparing to the Cote d’Azur. It is a bit difficult to get access to Corsica if we compare with Cannes and its region that take advantage of Nice international airport. However Corsica remains unknown for some wealthy American and Russian investors even if the latters have begun to be more and more interested in the market. More and more Russians come to visit Corsica but they are more keen to rent than to buy.
According to Coldwell banker CEO, Corsica still represents one of the best quality/price rations in Europe. There is a scarcity effect with little competition between the properties that are to sell.