In the context of tighter financing conditions due to higher interest rates and the geopolitical situation, it is no surprise that the property market began to be constrained in 2023. Non-cash buyers have hence found it more and more challenging to enter the market.
What we witnessed was a downturn that continued in the first half of 2024, with buyers and sellers adopting a wait-and-see attitude.
As we finish this year and are about to start 2025, we can thank our lucky stars to be located on the Côte d’Azur as we are witnessing a market that fares better than the general real estate market in France.
We have the location, the sunshine, the blue sea and the glamour that attracts everyone from all corners of the world!
What 2025 will bring for French Buyers?
From a long-term investment perspective, the French property market is a fairly decent bet. The property market in France has proved to be sufficiently robust and able to withstand temporary periods of decline. With a 1 percentage point difference between the current interest rate (3,2%) and the one we witnessed in 2023, (4,3%) we are entering a period of reassurance for buyers.
Opportunities always come around for buyers in a market where prices have lowered and where the credit is more attractive than previously.
We hope that 2025 will be a more favourable time to borrow money.
What 2025 will bring for International Buyers?
In 2024, the decline in sales is less pronounced for purchases made by foreign and non-residents (only -15%) than by French nationals. (around –30%).
Belgians now lead the buyer rankings in France. In 2023, Belgian buyers (who represent 20% of purchasers made by non-resident foreigners in France) dethroned the British, historically at the top of the rankings. Germans and Dutch also recorded a drop in the number of transactions. Only Americans remain stable in the evolution of their transaction numbers. With new President Trump in office (Jan 19th) we can expect a lot of interest from American buyers on the Côte d’Azur.
The takeaway from this ranking is that we, in sales, need to attract more international buyers by advertising on a number of US-centric platforms. This will enable us to maximize our digital visibility and hence capitalize on international purchase intent.
France: an excellent opportunity for buyers in 2025
This might not come as great news for property owners. However, for buyers, this represents an excellent opportunity. We, at Côte d'Azur Villas, need to advise property owners accordingly, and guide buyers in the right direction. Owners might need to reduce their inflated idea of the price of their property. This will require us to give them a proper explanation of what they can realistically expect. Instead of encouraging them to overprice their property, we will have to convince them to consider lower deals and offers.
The housing market, after mostly benefiting sellers, has now turned around. 2025 will be a year of adjustment, where relative prices will fall to match a lower demand.
Côte d'Azur Villas is ideally placed to maximise this movement if we follow these market indications.
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