A weak euro is enticing foreign buyers to plough money into France’s second-home market, with areas such as Provence, Côte d’Azur and the Alps proving to be particularly popular. Sales of homes in France to both domestic and international buyers jumped 12.5% last year, according to government figures, as a stable economic outlook and more affordable pricing have encouraged would-be buyers to take the plunge. Knight Frank, the global real estate consultancy, noted that it saw inquiries from prospective buyers increase by 87% year-on-year. Sales volumes are strongest within the €1 million to €5 million price bracket. With favorable mortgage rates of around 2.3%, price stabilization in most prime markets and a weak euro against the pound and the U.S. dollar, buyer confidence has strengthened. Due to property purchases last year, Britons once again own more second-homes in France than any other nation. They now account for around 60% of foreign buyers. In 2012 this dipped below 30% amid concerns over currency movements and President François Hollande’s policies. “Given the lifestyle on offer, France’s proximity and the currency advantage in recent years, it is perhaps no surprise that the British are active once more and represent a key source of demand in all our markets,” said Mark Harvey, a partner at Knight Frank. Equipped with a strong dollar, American buyers are also on the rise, particularly in Paris and parts of Gascony, while Evian continues to be popular with high-net-worth individuals from the Middle East, who are drawn to its lakeside living and easy access to the Alps. Many wealthy buyers are searching for income-generating assets—such as a vineyard, boutique hotel or olive grove—which will allow them to cover their costs while also funding annual vacations with family and friends in their favorite part of the world. At the same time, demand from domestic buyers has strengthened amid lower purchasing power abroad, a more positive political sentiment, cheap finance and good value—particularly in Paris. Knight Frank’s summary of the key French markets:
Paris
“Prime prices declined by 2.1% last year. Americans, British and Brazilians are the most active international buyers in the market and 14.4% of the housing market is categorized as second homes. Stock levels are relatively high.”
On the Market:
PRICE: $9.2 million
BEDROOMS: 6
BATHROOMS: 4.5 Spanning three floors, this fully renovated 18th century home offers luxury living in the City of Love between Rue du Faubourg-Saint-Honoré and the well-known hotel Le Bristol. View Listing
French Alps & Evian
“Prime prices declined by 0.6% in 2015. British, Swiss, Belgian and Middle Eastern buyers are most active in this region and 28.9% of the property market is classed as a second home. Stock levels here are also relatively high.”
On the Market:
PRICE: $5.665 million
BEDROOMS: 6
BATHROOMS: 5 A beautiful historic home, renovated in 2007, with lake and mountain views. View Listing
Côte d’Azur
“The market has witnessed the largest fall in prime prices when compared to Knight Frank’s other key second-home regions. Prime prices here dropped by 2.8% in 2015. British, Belgian and Swiss buyers are most active in the region with 17.8% of the market owned as a second home.”
On the Market:
PRICE: Available Upon Request
BEDROOMS: 5
BATHROOMS: Unlisted Located on nearly a half-acre of landscaped gardens in the Californie region of Cannes, this modern villa offers stunning views of the city and its bays. View Listing
Provence
“Prime prices increased by 2.1% in the year. British, Belgian and Swiss buyers again lead the way as top buyer nationalities. Around 19% of the market here is owned as a second home. Stock levels are relatively low.”
On the Market:
PRICE: $8.6 million
BEDROOMS: 8
BATHROOMS: 7 Overlooking the Alpilles, this Provence property includes a guest house, a farm building and 24 acres of wine producing vineyards View Listing
South West France
“Following significant price declines in 2015, prices in Gascony and the Dordogne have started to rise, albeit by 0.8%. British, Dutch and American buyers are the most prominent foreign buyers here. Around 11% of the housing market is second homes. With stock levels relatively low this may put upward pressure on prices in the coming year.”
On the Market:
PRICE: $1.5 million
BEDROOMS: 16
BATHROOMS: 11 With origins dating back to the 15th century, this Lot-et-Garonne chateau overlooks the Lot valley and includes seven stables on nearly 10 acres. View Listing