sign in sign up
<<
Home , French Riviera

RESIDENTIAL RESEARCH

PRIME REPORT2019 PRIME FRANCE REPORT 2019 PRIME FRANCE REPORT

THE PRIME FRANCE REPORT

The Prime France Report provides an overview of prime market conditions across Knight Frank’s key second home destinations: , The French Overview Riviera, , The French and South- West France. For the world’s wealthy, France remains the

DEFINITIONS ultimate home away from home

Where we refer to Prime Property this equates to the top 5% of each market by value. Prime Kate Everett-Allen markets often have a significant international bias International Research in terms of buyer profile.

Editor – Kate Everett-Allen [email protected] rance’s appeal needs little and look ahead at some of the transport explanation, it remains projects and events that will shape these Marketing – Sarah Guppy [email protected] Knight Frank’s number markets over the next five years. one market for lifestyle Media enquiries – Astrid Recaldin purchases and the country’s [email protected] second home hotspots rank high on the

Design – Quiddity Fwish lists of the world’s wealthy, but its quidditymedia.com appeal extends beyond its climate and Head of European Sales – Mark Harvey cuisine. For highly mobile international [email protected] buyers France offers good transport links, excellent international schools a transparent legal system and according to key findings the UN’s World Organisation it is We expect resale the most visited country when ranked by 5 transactions in France to tourist arrivals – providing a ready source exceed 1 million sales for 1 the first time by the end of rental demand. of 2019 France is now home to over © Knight Frank LLP 2019 610,000 millionaires, the sixth largest France remains the most This report is published for general information only and visited country in the world not to be relied upon in any way. Although high standards concentration of any country globally with over 89 million arrivals have been used in the preparation of the information, in 2018, providing a reliable analysis, views and projections presented in this report, according to data from GlobalData Wealth 2 pool of rental demand for no responsibility or liability whatsoever can be accepted Insight. This number is forecast to increase by Knight Frank LLP for any loss or damage resultant second home owners from any use of, reliance on or reference to the contents by 22% over the next five years, meaning a of this document. As a general report, this material does new millionaire will be created in, or move In Paris, rising prime prices not necessarily represent the view of Knight Frank LLP in will be further boosted relation to particular properties or projects. Reproduction to, the country every three hours between by the Grand Paris of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form 2018 and 2023. Project – Europe’s largest 3 infrastructure project over and content within which it appears. Knight Frank LLP is President Macron’s revised wealth tax, a limited liability partnership registered in England with the next decade – and by registered number OC305934. Our registered office is 55 which now applies solely to real estate as the 2024 Summer Olympics Baker Street, London, W1U 8AN, where you may look at a list of members’ names. opposed to all financial assets may yet British buyers now account boost this number further. This, combined for one in five prime with recent labour reforms, has done purchasers in France, down from three in five in 2014. much to signal a pro-investment stance OTHER OTHER MARKET-LEADING 4 Belgian, Scandinavian and KNIGHT FRANK PUBLICATIONS to wealthy entrepreneurs. Furthermore, Middle Eastern buyers, with low interest rates still holding, and the as well as the French themselves have filled The global perspective on prime property and investment ECB hinting further reductions may be on the gap French the horizon, more buyers are seeking to

ViewEXCEPTIONAL PROPERTIES IN FRANCE Due to the weak pound we THE WEALTH REPORT 2019 take advantage by leveraging their asset to had expected to see more minimise their tax liability. British homeowners with This report offers a guide to the prime property in France sell up and capitalise on the latest trends evident across each of our 5 EUR/GBP exchange rate but prime markets in France, we assess past there is little evidence of this to date The Wealth Report 2019 French View 2019 performance, current market trends

2 3 PRIME FRANCE REPORT 2019 PRIME FRANCE REPORT

German, Scandinavian and Belgian buyers are active France in focus Across France, northern European buyers are active, helping to offset a decline in British purchasers whose Assessing prime residential market conditions across France’s buying power has been hindered by the weak pound. Middle Eastern buyers are active in the South of France whilst Paris top second home destinations has seen a rise in US and South East Asian buyers.

here are clear signs that line to Avignon proved a game changer New homes in France come with added appeal France’s expanding wealth when it opened in 2017, putting Provence Provided buyers adhere to certain stipulations, TVA (VAT) How do prime prices in population, along with within a 6.5 hour train ride of London St of 20% is refundable on newly-built or off-plan properties Q2 2019 improving market sentiment, Pancras. New large-scale infrastructure France compare? while transfer tax is limited to 2% instead of the usual 7% for is translating into stronger projects in the form of the Grand Paris French Riviera Provence SW France resale properties. French Alps Paris demand for luxury property. Paris led the Project (see page 8), the upgrading of 5 trends chargeT with sales and prime prices picking Airport as well as the planned € per sq m up in early 2017. A year later, we saw this construction of several new high-speed €35,000 confidence spread to France’s regional train lines may also influence demand and Saint-Jean-Cap-Ferrat The informed buyer €28,000 markets, first Provence and the French future market performance. Saint-Tropez The digital revolution means buyers have data at their fingertips. Riviera, then Gascony and the French Alps. Courchevel 1850 €26,000 Before arranging a viewing most buyers drill down into achieved Enquiries for French homes increased €25,000 prices, rental rates and seasonal occupancy levels at a local level. Cap d’ by 33% and sales by 63% in 2018 year-on- €20,000 Proposed high-speed train lines Most prime markets in France remain a buyers’ market and Cap d’Ail year based on Knight Frank data. This vendors need to consider their asking price with this in mind. €20,000 momentum and positivity has continued in 1 Bordeaux-Toulouse Eze €20,000 2019, with a number of record prices set in Paris and on the French Riviera in the first Beaulieu-sur-Mer €20,000 half of the year. 2 Val d’lsere €19,500 Montpellier-Perpignan Rental return Whilst Brexit and the resulting weak €19,000 Around 70% of Knight Frank’s second home buyers in France aim Paris pound has seen UK buyers diminish, €18,000 3 to rent their property – a marked shift from a decade ago. Buyers Villefranche-sur-Mer Belgian, German and Scandinavian buyers Marseille- are becoming more financially savvy opting to rent their holiday €17,000 have stepped in to fill the gap. With no Saint-Paul-de- home to help cover costs, but most do so without the expectation €16,000 currency fluctuations to consider and with 4 Paris-Le Havre of a high yielding investment. Paris and Provence within a 4-hour drive Courchevel 1650 €15,800 €15,500 for some, a second home for such buyers % Courchevel 1550 5 CDG Airport Roissy-Picardie €15,500 becomes a viable weekend retreat not just a Meribel summer getaway. 1.2 At 1.2% GDP growth, the €14,100 Leveraging up Meribel Village This issue of accessibility is a IMF forecasts the French €13,700 6 Lyon-Turin Since September 2017 France’s wealth tax applies to real estate Megeve prerequisite for most buyers. The Eurostar economy will outperform €11,500 only (as opposed to all asset classes) and with record low interest Chamonix that of Germany, the UK, rates on offer, many buyers are opting to take out finance to €11,000 Nice reduce their tax liability. A 70% loan-to-value mortgage is not €9,000 Belgium, Sweden, Switzerland France: Record number of sales achieved in May 2019 and in 2019 unusual with rates around 2%, currently attainable. Eygalieres €7,600 No. of resales per annum Saint-Remy-de-Provence €7,400 €7,000 1,200,000 Gordes May 2019 La Garde-Freinet €7,000 A record 994,000 sales completed over previous year Aix-en-Provence €6,300 1,000,000 Menerbes €5,900 Mausanne-les-Alpilles €5,500 Key dates ahead 800,000 Bonnieux €5,200 May 2017 Macron elected Lacoste €4,900 600,000 L’Isle-sur-la-Sorgue €4,600 2022 2024 2025 2027 2030 Vaison-la-Romaine €3,900 Aug 2009 A low of 564,000 sales during global financial crisis Bergerac €1,800 400,000 French Presidential Paris Summer 5G network across Marseille Airport Grand Paris Project Auch €1,700 election Olympics major transport upgrade due for due for completion routes and key cities completion between 2024 and 200,000 Source: Knight Frank Research established 2030 – four new lines 2011 2017 2012 2013 2019 2015 2016 2018 2014 * Based on a prime (top 5% of the market) detached property in 2001 2010 2007 2002 2003 2009 2005 2006 2008 2004 & 68 new stations a desirable location

Source: CGEDD according to notary databases and DGFiP (MEDOC)

4 5 Roquebrune-Cap-Martin

Cap-Martin Eze Villefranche-sur-Mer Cap-d’Ail Nice Beaulieu-sur-Mer Saint-Paul-de-Vence

Opio Saint-Jean-Cap-Ferrat

Grasse Valbonne

Mougins

Juan-les-Pins

Cannes Cap d’Antibes

SAINT- CANNES SAINT-JEAN- TROPEZ CAP-FERRAT The French Riviera mapped… PRIME FRANCE REPORT 2019 PRIME FRANCE REPORT Most active price band Most active price band Most active price band West Coast Central and East Coast €3m-€7m €2m-€5m €5m-€10m Roquebrune-Cap-Martin

PRIME PRICES PRIME PRICES PRIME PRICES Cap-Martin Monaco Annual % change Annual % change Annual % change Eze to Q2 2019 to Q2 2019 to Q2 2019 Villefranche-sur-Mer La Garde-Freinet Cap-d’Ail 1.0% -0.1% 2.0% Sainte-Maxime Nice Beaulieu-sur-Mer Saint-Paul-de-Vence Saint-Tropez Opio Saint-Jean-Cap-Ferrat

Grimaud Valbonne FAYENCE Mougins

Croix Valmer Juan-les-Pins

Cannes Cap d’Antibes The French Riviera

From second homes to investment purchases and from large price tags to value hunters the French Riviera offers a surprisingly Saint-Jean-Cap-Ferrat diverse mix of opportunities The – prime hotspot Crique de Rouvier Pointe Passable Plage du Talon

Plage de Pointe Passable Fontettes he appeal of the French The eastern end and central stretch For those seeking value on the coast, Riviera, arguably the world’s including Saint-Jean-Cap-Ferrat, Juan-les-Pins and Sainte-Maxime merit Port de most desirable second home attention, here a three-bedroom villa with Saint-Jean- Villefranche-sur-Mer, Cannes and Cap As one of the most Cap-Ferrat destination, is undoubtedly d’Antibes saw sales strengthen in late sea views starts at around €1.2m. La Garde-Freinet Sainte-Maximeexclusive markets on the Boulevard du Général de Gauile its lifestyle but also the 2017. But while activity has increased, Pointe coast Knight Frank is proud Moulalier diversity it offers. From medieval villages prices have shifted by only a few Saint-Tropez Plage de to announce it has opened la Gavinette Paloma and rural landscapes to city living and percentage points. T The French Riviera: Prime price Grimaud marinas, the region caters for A major conference and festival venue, a new office at Avenue performance compared Presquîle du all tastes and a surprisingly broad range Cannes is a less seasonal market and has Indexed, 100 = 2014 Denis Semeria, Cap Ferrat Pointe de of budgets. one of the coast’s few investment markets Ramatuelle Saint-Jean-Cap-Ferrat. la Cuisse In recent years the performance of the given the city’s large stock of apartments. 110 120French Riviera’s property market proved Prices here dipped marginally by -0.1% in Croix Valmer equally diverse with the residential the year to June 2019 but sit 6.8% higher Pointe de 110 market along the coast operating along than in 2017. Crau Nao multi-tiered levels. 100 100 To the west, Saint-Tropez’s property market cycle lags that of Cannes by The 1.3km forested peninsula is home to around 90 around a year and here there are green 500 spacious villas on large plots and it has one of shoots starting to emerge, with prices the strongest international buyer profiles on the 80 rising 1% in the year to June 2019 and 90 French Riviera. Pointe Pointe with a number of high-end sales agreed Malalongue Causinère 70 The Eastern side is home to the best , the in 2019. Cannes Saint-Jean-Cap-Ferrat Port and the old town, it offers the widest array of Factfile 60 Those buyers relocating permanently Saint-Tropez amenities, whilst the west has a steeper coastline and • Saint-Jean-Cap-Ferrat has more mountain shelter from the wind to the region often target the area inland 80 good views. compared to Saint-Tropez 50 2014 2015 2016 2017 2018 2019 2014 2015 2016 around2017 Mougins2018 and Valbonne,2019 which Easily accessible, Saint-Jean-Cap-Ferrat is Knight Frank Research • There are two Michelin-starred restaurants – La Voile d’Or and Le Cap offer good international schools and easy Source: located within a 35-minute drive of Nice Airport and The number of homes sold 8 access to Sofia Antipolis, a technology a 30-minute drive of Monaco. Prices range from €2m • The small marina has around 560 berths above €19m on the French park home to over 2,000 companies and For more information contact Jack Harris to in excess of €200m with the most active price band (+)44 20 7861 1139 • Property taxes are c.7% per cent of the purchase price, including registration Riviera since Jan 2018 more than 36,000 employees. [email protected] currently between €5m and €10m. fees and stamp duties

6 7 PRIME FRANCE REPORT 2019 PRIME FRANCE REPORT Most active price band Paris Provence Most active price band €2m-€4m €1m-€2m We look at what’s driving Paris’s prime residential market and Demand from northern Europeans is strengthening as outline the ambitious projects that lie ahead Provence’s accessibility comes into focus PRIME PRICES PRIME PRICES Annual % change Annual % change to Q2 2019 Le Mesnil- to Q2 2019 Aeroport Amelot Charles-de- Grand 5.0% Gaulle 1.2% Triangle Paris VALD’OISE de Gonesse Project

SEINE Saint-Denis ETMARNE GOOD TO Pleyel • 4 new lines KNOW • 68 new stations Seine Nanterre Le Bourget RER Clichy La Folie Montfermeil • 2 million passenger Mairie SEINE SAINTDENIS capacity per day 1. 2. 3. de Saint-Ouen Le Defense • 90% of lines built LIGNE  Cycling tourism Airport upgrade South facing underground Marseille Airport’s €250m Rosny Marne on the rise properties Cycling tourism is on the upgrade will boost tourism Buyers are targeting Bois-Perrier Example journey PARIS Noisy rise particularly around in Provence almost doubling south-facing properties Champs reductions Mont Ventoux its capacity from 8.5m to which are less exposed to Olympiades between 12m and 16m Versailles the Mistral Charles-de-Gaulle passengers per annum Chantiers Pont de Sevres Airport to La Defense Average price by Champigny by 2027 Centre 34 mins instead arrondissement Villejuif Institut of 53 mins Gustave-Roussy at 1 Sept 2019 VAL-DE-MARNE HAUTSDESEINE Seine to the Paris Saclay Selected arrondissements University Campus Aeroport Massy Palaiseau d’Orly 15 mins instead / of 1 hr 6 mins 1 €12,817 m2 ESSONNE he region offers not one but aris’s residential market is a key The second, the 2024 Summer Olympics, D 49KM two national parks – the / bright spot globally. Few luxury will see the development of the Olympic Avignon Vaison-la-Romaine 4 m2 Luberon and Alpilles – which €13,183 residential markets can be Village on a riverside site in Saint-Denis, 15 L’Isle-sur-la-Sorgue Maison du Gordes together offer a mix of craggy considered a sellers’ market in minutes from the city centre and most events D Parc Naturel A Regional du Luberon hillsides, medieval villages and / today’s economic climate but since will be held in and around Paris, including the D m2 D rolling lavender fields. 6 2017 the city of lights has seen several factors suburbs of Le Bourget, Nanterre, Versailles D €14,270 Lacoste coincide to boost activity. Prices for a four-bed farmhouse in the and Vaires-sur-Marne. Menerbes Bonnieux T PPresident Macron’s pro-business stance, Luberon sit at around €1.5m to €2.5m 7 /m2 a resurgent commercial sector, large-scale whilst Les Alpilles pitches slightly higher €13,941 infrastructure projects, cheap finance and Saint-Remy-de at €2m to €3.5m, both still some way off constrained supply (there are very few new- Provence Eygalieres D Lourmarin the French Riviera’s best addresses. Prices Neighbourhoodwatch DY build opportunities in central Paris) have here have been resilient in recent years / D 8 m2 Mausanne-les-Alpilles boosted sentiment. Dwith annual growth averaging 1.5% per €11,657 DN At €19,000 per sq m, prime prices in the city Parc Naturel annum over the last five years. Régional des alpilles also compare favourably with other first tier A The area north of L’Isle-sur-la-Sorgue / D 9 m2 global cities – the equivalent in London and New stretching up to Vaison La Romaine has €10,983 York would be closer to €28,000 per sq m and DN A seen transactions strengthen since 2017 €27,600 per sq m respectively. Prime prices in A SoPi D as buyers seek ‘value’ markets. For those the French capital jumped 5% in the year to Q2 /m2 Once part of Paris’ red light district, SoPi (South Pigalle) from western and northern Europe it is 10 2019 and stand 21% above their low in Q4 2015. has broken free of its seedy past and evolved into one of €9,965 D an hour closer than Aix-en-Provence and International demand is strengthening the city’s hippest neighbourhoods. Sandwiched between D the desirable 9th and 18th arrondissments and at the Aix-en- A three hours closer than yet the area amongst European, US and Middle Eastern foot of Montmartre Hill the area is home to independent Provence / offers a similar feel to Gers and Gascony. 16 m2 buyers in particular. A US buyer is currently boutiques, traditional bistros and upmarket cocktail bars. Tight planning A traditional farmhouse is attainable for €11,048 able to secure a discount of nearly 14% in Paris Value hunters Pure Prime rules €1.5m, the same property would be closer compared to 2011 taking price changes and The area north of St-Remy-de-Provence Home to two national parks, L’Isle-Sur-la-Sorgue up to to €1.9m in the Luberon. / currency into account. the region’s rolling hills 17 m2 is one of the region’s Vaison-la-Romaine is seeing and medieval villages are With flights from over 117 destinations, €10,551 Paris is the venue for two major most sought after prime strong demand as buyers subject to tight planning regeneration projects. The first, the €26 billion destinations with prices seek value. Here, prime Marseille Airport is the main gateway regulations meaning new Grand Paris Project, will be Europe’s largest around €7,400 per sq m. prices are around €4,000 to Provence but for those travelling / build opportunities are 18 m2 per sq m. from Paris, Northern France or the UK, €9,535 development opportunity over the next ten 13th Arrondissement few and far between. years. A city-wide initiative, the project will add Home to Station F, at 34,000 square metres the the extension of the Eurostar/TGV line 200 kilometres of new rail capacity, deliver largest startup facility in the world and the brainchild of to Avignon which opened in 2015 put Source: Meilleursagents.com tech billionaire Xavier Niel, the 13th or Gobelins as it is The Eurostar runs from London St Pancras to Avignon via Paris or upgrade 68 metro and RER stations and known, is one of the few neighbourhoods in Paris with Provence within easy reach. provide a new ring route around Paris with lines two-storey houses rather than just apartments. The For more information contact Roddy Aris 13th offers values closer to €8,000 per sq m rather For more information contact Laetitia Hodson connecting developing neighbourhoods (see EUROSTAR TO THE DOOR AVIGNON PARIS LONDON KINGS CROSS (6H 13) (+)44 20 7861 1727 than €11,000 per sq m in the 5th. (+)44 20 7861 1083 [email protected] map above). [email protected]

8 9 1 2 3 4 5 PRIME FRANCE REPORT 2019 PRIME FRANCE REPORT Most active price band French Alps €1.5m-€2.5m Alpine resorts are expanding their offer to appeal to a wider PRIME PRICES demographic and lengthen their season Annual % change € to Q2 2019 1.9% € einvention is the name of the to attract in excess of 120m tourists to the RICH game in France’s top mountain region each year. resorts. No longer the sole FRANCEPrices across the eight alpine resorts we preserve of adrenaline junkies monitor in France increased by 1.9% in the Stable prices Cheap finance No.1 tourist € asset in Economic these exclusive enclaves are year to June 2019, up from 1.5% a year earlier. destination demand heavyweight rebranding themselves as wellness retreats. Prices have stabilised since 2013 and sales Most of France’s prime A low interest rate Strong rental demand A rising number of high France remains the The objective is to broaden the resorts’ transactions have been steady. SentimentNeuchâtel destinations are seeing environment looks set to over 89m overseas net worth individuals from Eurozone’s second R stable or rising prices – continue with analysts tourists visited France overseas are seeking a largest economy and appeal to non-skiers and expand their improved in 2018/19 in part due to the high having passed the lowest expecting the ECB to cut in 2018 euro-denominated asset unemployment is at a season length. snowfall witnessed in the previous season. curve on their property rates in late 2019 and a to help spread risk 10-year low Much like the Aspen Institute, the French The number of new-build projects has market cycles second round of QE on Alps also offer a year-round calendar declined as planning laws have become the cards D BEST of social, sporting and cultural events. more draconian. This has pushed demand SWITZ ERLAND RESORT FOR The Winter Golf Cup, the International back towards the resales sector – the Adventure & Discovery Film Festival and total volumes of sales in the Haute Savoie A the Cosmo Jazz festival now sit alongside department increased 7.2% in the year to July S the established , helping 2019 according to the CGEDD. Lake Geneva Best resort for…. Strongest rental demand in the Strongest rental summer season demand in the Chamonix summer season: Geneva L

Chamonix Chamonix Combloux

Megeve Proximity to Airport Proximity to Lyon Airport Chamonix & Bourg-Saint- Maurice Chamonix & Megeve Megeve reasons10 to buy in France

Chambery Meribel Village Highest resort Meribel 6 7 8 9 10 (most reliable Val d’IsEre snowfall) Courchevel 1550 Courchevel 1650 Courchevel 1850 Val d’Isere Highest resort (most reliable snowfall) Access to largest Val d’Isere ski domain

LN Courchevel & Meribel Safe Haven Weekend The race is on In times of uncertainty when retreats A new source of demand Access to largest stock markets and bonds Weekend getaways has emerged; trailrunners. Tax benefits Accessibility Culinary Excellent Commuter ski domaine are yielding low returns, are on the rise as Many base their holidays property is again emerging homeowners look to around their running schedule hotspot education base as a refuge for wealth – and ultra marathon events, Courchevel & make short but frequent particularly homes that some are looking to buy, France’s tax landscape France’s location offers The home of the France is renowned for Flexible working and Meribel trips to the mountains, enrich one’s lifestyle, and meaning proximity to others are seeking long-term is increasingly benign – easy access to Spain, Italy, Michelin-starred good international schools excellent broadband retain an international pool of the airport is being given lets. Chamonix is high on their wealth tax is now solely Switzerland and Germany. restaurant – France promoting traditional connectivity makes demand to maximise one’s greater importance. list with the areas of Les Bois based on real estate Paris’s Charles De Gaulle boasts 616 in total values and a structured weekly commutes from exit strategy. and Les Houches assets and investors and Airport is a major transport academic syllabus the South of France or in demand. For more information contact Roddy Aris entrepreneurs have been hub and Europe’s second- Paris to London, Geneva (+)44 20 7861 1727 tempted back by flat rates largest airport or Brussels a viable option [email protected] on CGT and dividends

10 11

CONTACTS LONDON

MARK HARVEY Head of Department +44 20 7861 5034 [email protected]

RODDY ARIS JACK HARRIS LAETITIA HODSON Paris and French Alps Cote d’Azur and Gascony Provence +44 20 7861 1727 +44 20 7861 1139 +44 20 7861 1083 [email protected] [email protected] [email protected]

EDWARD DE MALLET MORGAN ALASDAIR PRITCHARD Prime Sales France and Monaco Prime Sales France +44 20 7861 1553 +44 20 7861 1098 [email protected] [email protected]

NOW AVAILABLE Exceptional properties in France

KnightFrank.com