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Prime France Report2019 Prime France Report 2019 Prime France Report RESIDENTIAL RESEARCH PRIME FRANCE 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: Paris, The French Overview Riviera, Provence, The French Alps 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 Tourism 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 THE WEALTH 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 Marseille 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’Antibes 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. Cannes €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-Nice are becoming more financially savvy opting to rent their holiday €17,000 have stepped in to fill the gap. With no Saint-Paul-de-Vence home to help cover costs, but most do so without the expectation €16,000 currency fluctuations to consider and with Mougins 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 Valbonne France: Record number of sales achieved in May 2019 and Italy 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
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