THE REAL ESTATE MARKET FOR 2025

With tighter financing conditions due to higher interest rates and the geopolitical situation, the property market began to be constrained in 2023. Non-cash buyers hence found it more and more challenging to enter the market. What we witnessed then was a downturn that continued in the first half of 2024, with buyers and sellers adopting a wait-and-see attitude.

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 still 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.
Hopefully, 2025 is a more favourable time to borrow money.

What 2025 will bring for International Buyers?

Interestingly in 2024, the decline in sales was 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 President Trump in office, we can now expect a lot of interest from American buyers on the Côte d’Azur, as well as the return of Russian buyers on the French Riviera.

The Côte d'Azur: 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.  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 the right offer at the right time.
The housing market, after mostly benefiting sellers, has now turned around. 2025 is a year of adjustment, where relative prices fall to match a lower demand. 
By following these market indications and understanding our clientele, Côte d'Azur Villas is ideally placed to maximise this movement.

15/01/2025

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