For prospective buyers, the rumour of getting a good deal on properties on the French Riviera is now a reality. - By Nicola Christinger
Whilst no country has a guaranteed immunity from the current global financial turmoil, France has been less affected by the sub-prime problem and the credit crisis due to its strict lending laws which has led to a more stable housing market than many of its European neighbours.
Certain areas of France, particularly the Cote d’Azur and Paris will always have international appeal and therefore there will always be a good selection of property and a steady market.
The French Riviera property market sets itself apart from the rest, luring the rich and famous from all over the world. Apart from the weather, the scenery, the atmosphere, the food, the accessibility and of course the reputation, it is also one of very few places in the world that has sea and the mountains within such easy reach. These points mean that holiday home owners can enjoy their properties all year round rather than just during the summer season, as in so many other holiday locations around the world.
Although it is impossible to predict what will happen in the next 12 -24 months, historically, the Riviera is not an area of “boom and bust” with a steady increase of around 5-6% year on year. The worldwide crisis has changed everything around the world and it would be foolish to assume that this coastline has not been in anyway affected but it certainly seems like a relatively stable market.
Tim Swannie, Director of HOMEHUNTS says: “Our enquiry rate is slightly lower than last year but there is not a huge difference for us so far and the clients we are working with are quite focused, there is definitely still demand out there for properties, particularly towards the top end of the market.”
“We agreed a sale on a property last week and there were three buyers offering at the same time” he adds.
So whilst there is demand then does this mean that prices should be less affected? Compared to the property market in many other countries, such as the UK and USA, buyers in these countries have simply stopped buying and therefore prices are in freefall. The big difference on the French Riviera seems to be where the buyers are coming from, with Russian, Scandinavian, Dutch and Middle Eastern clients all actively still putting their money in property.
Due to the Rivera’s strong appeal there are a large number of holiday home properties for sale. Some of these properties may have been for sale previously at quite a high price because the owners were not in a position where they had to sell. Used just a few times a year, if the owners managed to obtain a certain price for these properties then they would let them go. Now with the global crisis as it is, many people are feeling the pressure elsewhere which means owners are now in a position where they need to sell. Because of this, owners are now becoming much more focused on selling and are therefore willing to accept offers that they may not have considered 6 or 12 months ago.
For serious buyers, especially cash buyers, there is always room for negotiation, depending on the owner’s situation and there is a definite possibility to get a reduction on the price. When sensible offers are put on the table, sellers are accepting. There are some very good opportunities to buy property at reasonable prices, which is helping to stabilise opinions. This is encouraging news for active buyers and investors
Click here to look through a wide selection of property for sale on the French Riviera or look here for property for sale in France and around the world
