South of France real estate market : Sea, sun and properties

Settling in a sunny area in the South of France is a dream that many do, are they from the North or from another country. Who, after a couple weeks of holidays spent on the seaside or in a small typical village of the South of France, has never thought of buying a house. The cicadas singing, no more good bread, olive oil, cheese and wine bought at the village morning market… the South of France appears as a paradise both for Northern people and for foreigners.

But settling in the South of France often stays a dream. Regarding the prices of the properties, the area is usually seen only as a place to spend holidays. Even if, renting an apartment facing the sea side still is expensive. Budget for a week, renting only : 500 Euro minimum for a studio at la Grande Motte, Hérault.

Fortunately for the French real estate market, foreigner’s purchasing power is higher than the French. According to the French Notary Council, in 2006, a potential foreign landowner could budget 467 000 € to buy a house in Paris, which twice more than a French investor. Problem: it makes the prices increase so much that buying a property in the South of France has become even more unaffordable for French people.

The first places assaulted by foreigners, above all German and English, are those little typical villages not far neither from the sea or the river, nor from a bigger city. When meeting old people inhabiting the village for years, sat on a chair at their front door in the street, one can feel their regret, or sometimes even their anger, to see their paradise invaded by foreigners. But what worry them the most is ‘the Parisian invasion’! The Groinet family lives in Vers-Pont-du Gard, near the famous aqueduct of the same name. Parents and children rise up each time a car registered in the area of Paris goes down their quiet street. On the contrary they gladly welcome foreigners. Their neighbours come from Germany. They bought their house 8 years ago, and live there only during the summer months. Usually travelling by plane with low costs companies such as Ryanair, it is nearly less expensive and quicker for them to go there than to go on holidays in their own country. They don’t rent their house when not in France and seriously think about settling there when retired.

According to a study published in April 2006 by the Association of the Parisian Solicitors, foreigners are twice more now to buy a property in Paris than ten years ago. Why such a craze for France, whereas the prices are constantly increasing?
First, as we said, because compared to the other European real estate markets, France still is more attractive.

In July of this year, the European Council of Real Estate Professions compared the evolution of prices for properties in different countries. It appeared that in France the prices to buy a house raised up to 7%. Nothing much compared to Denmark where the prices underwent a 25% increase. These results explain why most of the foreign investors in France live in the European Union. For them , buying a secondary residence in France is not just a dream. At the top five of the countries seduced by France for its cheap properties are Great Britain, Swiss, Italy, Germany and Belgium (source : French Office of Tax and Revenue).

From the same source, the South-East, South-West, the Alps and Paris are the highest prized areas.

There is no doubt, France has many reasons to attract foreigners, will it be the landscape, the high quality of living or its attractive prices. Celebrities also have well understood this. French singer Vanessa Paradis and American actor Johnny Deep for instance have bought a part of scrubland in between two villages of the South East. But this is another story!

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