The Côte d’Azur is the third in Mansion Global’s series Summer of the Strong Dollar, an examination of European luxury destinations where American home buyers can capitalize on their currency advantage. As of Thursday, the dollar had risen about 22% against the euro since the end of June 2014.
Price Trends:
International buyers, driven in part by changes to French tax laws, are heading to the French Riviera. Foreign buyers accounted for 90% of luxury sales in the Côte d’Azur in 2014, according to a report from Christie’s International Real Estate. Buyers are taking advantage of price reductions in the region, where housing prices have dropped nearly 20% since their 2007 peak, according to the report. Hotspots such as Cannes, Cap d’Antibes and Saint Tropez generated the most inquiries in 2013, the most recent year for which data was available, according to real estate consultancy Knight Frank. “[Foreign buyers] are showing their interest in investing before prices resume their upward trend,” said Laurence Chaleil, general manager of Côte d’Azur Sotheby’s International Realty.
Villefranche-sur-Mer, price upon request: Perched above the Bay of Villefranche, this newly built estate features views of Nice, Cap Ferrat and the Alps. The home includes seven bedrooms, a swimming pool and covered terraces. Agent: Peter Illovsky, Côte d'Azur Sotheby's International Realty. View full listing. CÔTE D'AZUR SOTHEBY'S INTERNATIONAL REALTY
Taxes, Fees and Purchase Costs:
“Once you’ve signed the dotted line there is no turning back,” said Mark Harvey, a partner at Knight Frank who leads its French residential network. Before signing a contract to purchase a home, Harvey recommends that the buyer reach a deal with the seller that the transaction is contingent on the results of a property survey. Buyers can expect to pay transaction costs equal to about 7% of the purchase price, according to Harvey. These costs will include a stamp duty and notary fees. Additionally, sellers in France are required to pay a capital gains tax of 19%, which the French government reduced from 33.3% for non-European Union nationals in December 2014. Since March, foreign buyers have no longer been required to pay a 15.5% social tax on the income generated from second homes.
Cannes, price upon request: Located in the Californie neighborhood, this five-bedroom villa features a home theater, a wine cellar, a swimming pool and views of the Mediterranean Sea. Agent: Peter Illovsky, Côte d'Azur Sotheby's International Realty. View full listing. CÔTE D'AZUR SOTHEBY'S INTERNATIONAL REALTY
Lifestyle:
Known for its beaches and nightlife, the coastal town of Saint Tropez remains popular with European jetsetters looking to purchase a second home. Prospective buyers can find restored Provençal-style estates here, as well as modern villas. Contemporary homes with water views are the most sought-after properties across the region. This popularity is fueled by interest from international buyers, who are looking for “move-in-ready” properties, according to the report from Christie’s. In Cannes, the Californie area, famous for its contemporary homes, remains a first-rate financial investment, said Chaleil of Sotheby’s. View full listing (pictured top) Listings on Mansion Global as of June 26, 2015 Write to Gina Faridniya at gina.faridniya@dowjones.com