The Côte d'Azur – long regarded as a haven for the international jet set – is facing a new reality in its property market. Homes that once sold quickly at premium prices are now sitting on the market for months. Sellers holding onto pre-pandemic valuations risk being left behind. Here’s why adjusting prices is now crucial for those hoping to sell in this iconic region:
1. High Prices Amid Global Economic Instability
Even on the Côte d'Azur, a magnet for wealthy buyers, the global economic landscape has shifted. Inflation, rising interest rates, and fears of recession are weighing on buyers, including high-net-worth individuals. Financing conditions have become more expensive, and the purchase of a luxury villa is now a far more calculated decision. Sellers need to recognize this and adjust their price expectations accordingly.
2. Slowing Demand in the High-End Market
Demand for luxury real estate, once driven by Russian, British, and Middle Eastern buyers, has weakened. Sanctions targeting Russian wealth, Brexit-related complications for British buyers, and ongoing conflicts in the Gulf region have reduced the pool of financially capable investors. Without this steady flow of international buyers, villas in Èze, Cap d’Ail, or Saint-Jean-Cap-Ferrat are struggling to sell. Overpriced properties risk deterring the few serious buyers still in the market.
3. Geopolitical Tensions Are Discouraging Foreign Buyers
The wars in Ukraine and the Middle East are fueling uncertainty across Europe. The Côte d'Azur market relies heavily on international clients seeking second homes or long-term investments. In such uncertain times, these purchases are often postponed. Sellers must acknowledge that setting prices too high will only further alienate these cautious buyers.
4. Falling Rental Yields and Rising Maintenance Costs
Many investors on the Côte d'Azur once bought with the intention of generating rental income. However, circumstances have changed. Stricter regulations on short-term rentals, coupled with rising maintenance costs (gardens, pools, security), are making these investments less appealing. Buyers now factor in these ongoing expenses and are far more price-sensitive when making purchasing decisions.
5. Heavy Tax Burdens on Foreign Property Owners
France’s tax system is often seen as complex and discouraging for foreign buyers. In recent years, property taxes have increased in several prime coastal towns, and regulations for non-residents have tightened. Many prospective buyers from the UK, Switzerland, and elsewhere are factoring in this tax pressure – and demanding lower purchase prices to offset the perceived risk.
6. An Overabundance of Prestige Properties
On the Côte d'Azur, the abundance of high-end villas has created fierce competition. In Èze, Beaulieu-sur-Mer, and Cap d’Antibes, properties compete with breathtaking sea views, infinity pools, and sleek modern renovations. Yet, with such an oversupply, buyers are spoilt for choice and are negotiating hard. Sellers clinging to inflated prices see their properties stagnate, while others close deals by adjusting their expectations.
7. Buyers Are Better Informed and More Selective
With online platforms and specialized agencies like BENJAMINPRATT, buyers today have access to a wide range of listings across the Riviera. Price discrepancies are easily spotted with a single click. Overpriced properties are quickly dismissed. In the second-home segment, buyers are patient and willing to wait until quality and price align.
8. Post-Pandemic Shift in Buyer Preferences
The pandemic reshaped buyer priorities. There is now greater demand for comfort, practicality, and energy efficiency. Opulent villas requiring high maintenance no longer hold the same appeal. Even affluent buyers have become more pragmatic: an investment must make sense. Competitive pricing is often the decisive factor.
Conclusion: Adjust Your Price or Remain on the Market
To sell on the Côte d'Azur, the message is clear: realism is the new luxury. The region will continue to attract buyers from around the world, but their approach has changed. Holding onto pre-crisis price expectations risks rendering your property invisible. Adjusting to the new economic realities is the only way to secure a smooth and timely sale.
Contact BENJAMINPRATT for a professional market analysis and an accurate valuation of your property.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.