It’s not new to say that France, and especially the French Riviera, is a major hub in the luxury housing market of central Europe.
France has just emerged from a challenging five years, with major economic and political problems, but, thanks to recent election results, the time to look ahead has come and the future looks bright for the French property market.
Due to extensive tensions and worries in England with “Brexit”, high net worth (HNW) and ultra HNW individuals have an increasingly strong interest in buying in the south of France as the London property market’s future appears less strong over a long-term basis due to diminishing yields and capital growth.
The significant change in the political situation in France has had a resounding impact on the French property market. Macron has brought a “fresher” image to the country and residents feel increasingly confident investing considerably more money in property there. Economically speaking, France is forecasted to enjoy a strong 1.7% GDP growth in the coming quarters which once again shows how the new elected president has positively impacted the global country’s situation. That being said, many European investors do consider France’s future as being the brightest in the E.U.
The French Riviera hosts breath-taking sights with some of the most exclusive properties in the world. From St-Tropez to Cap-Martin, passing by Cannes, St Jean Cap-Ferrat and Monaco. These places have always attracted the “super-rich “and the historically low rates have enticed them even more.
Mainly speaking about mortgages, France is currently very competitive, structuring them in a way to optimise their wealth tax exposure. Low interest rates mean money is cheap and HNW will not miss the opportunity to get it if they can.
Another fact to stress is that the international banks have also lowered their margins to attract further foreign investment and countries such as England are taking advantage of it.
Buying a secondary or tertiary home in the Riviera is not just a very safe way of placing your money, but also a good opportunity to generate income. Taking Cannes as an example the city offers a full-year event diary attracting celebrities and investors from all over the world.
Incumbent countries such as Russia or the UAE have already settled down in the Riviera, so the million euro questions is, who are going to be the next big buyers of the south of France? And how are the banks going satisfy their financing needs best?