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November 16, 2018, CannesThe evolution of luxury real estate prices in 2019The evolution of luxury real estate prices in 2019

The luxury real estate market has not been affected by the economic crisis. The favorable financing conditions and the pro-business policies allowed for a growth in the number of rich people. However, according to a recent note published by the Xerfi research company, after a 15% rise in 2017 and a 17% rise in 2018, the trend of the luxury real estate market should slow down in 2019.

According to the forecasts of Xerfi experts, quoted by Les Echos, "Despite the effects of Brexit, the real estate market will slow down (with an average 5% increase per year from 2019) due to a gradual rise in mortgage rates."

 

The main factors that influenced the evolution of the market


The social, political and economical climate, as well as the stock market climate have influenced the French real estate market. The return of an international clientele in the south-east of France and the interest in second homes explain in a way the growth of the luxury real estate market.

Real estate market players are pleased with the favorable market conditions of 2017 and 2018, but they are prepared for a slight decrease next year.

Increased competition for seasonal rentals

If competition remains moderate with regard to the purchase of luxury properties, the real competition is between traditional market players and  platforms like Airbnb, The Collectionist or Onefinestay (partly owned by AccorHotels).

 

Forecast for the real estate market in 2019


Real estate agencies should therefore expect an average growth of 5% per year from 2019. Real estate experts believe that this slowdown in activity will extend to the entire real estate market.

For the luxury real estate on the Côte d'Azur the news is pretty good. There is a real demand for sale or rental of prestige properties in Cannes, Mougins, Valonne ... The excellent conditions offered by the prestige properties on the Riviera and the numerous attractions offered by the life in the south of France, as well as the good prices are the main reasons for this dynamic market.

In addition, the interest of the Northern Europe inhabitants to the luxury goods of the French Riviera also boosted the market. France now ranks third (behind Portugal and Spain) for its attractiveness on the luxury real estate market.

Most buyers of prestigious properties on the French Riviera (Cannes, Mougins, Valbonne) are looking for properties that cost between 2 and 6 million euros, with an area between 250 and 350 m², located near the center and beaches.

If you think of making a real estate investment, according to the opinion of specialists, it is a good time to invest. After all, who would not want to have a luxury home in the south of France as a second home?
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