Getting a tan on the sunny beaches, shopping in luxury shops, discovering the cultural richness of the surroundings, skiing in the Southern Alps, playing golf in one of the numerous courses, enjoying a gourmet restaurant, flying from the international airport... Unquestionably, the assets of the Riviera are as much qualitative as quantitative. Consequence: many are the French and Europeans to want to settle there (+ 20,000 new inhabitants per year in the region PACA, Provence, Alps, Côte d’Azur). Here is for the demand. But what about the offer?

A shortage of new units
The crisis of the offer for new units has been lasting for more than 10 years. Reasons? Above all, scarcity of land in the Riviera basin. Many land, located between sea and mountain, are indeed unconstructible. The promoters thus devote themselves to a higher bid around the meager land still available. A competition with a direct effect on the price for new residences (+10/20% per year). Moreover, of true common policy of regional planning does not exist, the actors of the market operate on a case by case basis. Added to that are constraining construction rules as well as a lack of organization with respect to these regulations. About numbers, public as well as private observers are unanimous: the needs for new units are currently estimated at 5,000 per year. However, for the last 10 years, the production has been only of 3,500 residences, resulting in a market with a true offer shortage. Affected populations? Mainly, the middle class. Between the residences with a price tag over 5,000 €/m2 offered by private operators and those of the social sector at 2,500 €/m2, there is a large gap!

Out of the region Purchasers
Who buys in these conditions? “75% of sales for new units are carried out by purchasers who do not live in the area”. To summarize, 1/4 of the new residences is purchased by people from the region, the remainder being purchased by persons from other departments or other European countries (where the prices, in the North of Europe in particular, are even higher). A distribution of new units which is not without problem. An ideal balance for the society being 1/3 for acquisition by locals, 1/3 for renting all sectors, 1/3 for luxury residences. This economic situation worries the companies (which pain to attract employees in a department where housing becomes out of price) as well as the local elected officials (who do not wish to see the socio-professional fabric being degrading even further). For these actors, the Riviera cannot be summarized as a “super Club-Med style resort”. This situation unique to the region should nevertheless evolve. This thanks to the progressive establishment of development planning policy and projects. This change is already translated in the new town development plans. The objective being to regulate the transportation and housing problem and to found a durable development policy

Resale in full swing
+4% in volume and +11% in prices! With an average price of 3,500 €/m2, the resale market in the Riviera is upbeat. A rise in prices which does not seem poised to diminish since here as well the offer is in recession. For that, several reasons. Firstly, the owners are not very inclined to resell their residence, relocating in the area being difficult. Then, even if the shortage of the offer is lower than for new units, the opportunities also remain insufficient in the resale market. The Riviera being still as attractive. The real estate is of good quality. Many equipments and services such hospitals, transportation, restaurants, infrastructures, sports and leisure are present in abundance... “ Within this resale market, the great luxury real estate is characteristic of the Riviera. This waltz of great properties in the intimacy is an old Riviera tradition.

Between the residences with a price tag over 5,000 €/m2 offered by private operators and those of the social sector at 2,300 €/m2, there is a large gap!

Particularly active and balanced, this market of exception escapes from all the risks and objectivity. It is an emotional market. From Monaco to Saint-Tropez, we see several hundreds transactions per year with prices ranging from 1 to 100 million €!" What to conclude from this? Above all that this inadequacy between supply and demand is as always the main reason for the sharp increase in prices (+ 118% in 6 years!). Then that this tendency, a reflection of Riviera specificity, should still go on for several years. Lastly, that the Riviera is definitely not the standard... Indeed, if it were, would it be the object of the same desires?